Law Summary
Role of the Home Development Mutual Fund (Pag-IBIG Fund)
- The Fund collects provident contributions from employees and employers.
- Excess funds are used to offer housing loans to members.
- Charged with developing savings schemes for home acquisition for private and government employees.
Coverage and Membership under Republic Act No. 7742
- Mandatory coverage for employees under the Social Security System and Government Service Insurance System and their employers.
- Voluntary membership for employees earning less than PHP 4,000 monthly.
- Employers are required to contribute upon employees' membership.
Barangay Officials' Compensation and Recognition
- Barangay Chairmen and Councilors govern barangays and receive honoraria for service.
- Leave privileges of barangay officials are recognized by the Civil Service Commission and Department of Budget and Management.
- Honoraria are treated as fixed salary under relevant regulations.
Honoraria Considered as Salary (Section 1)
- Barangay Chairmen, Council Members, SK Chairmen, secretaries, and treasurers' honoraria are deemed salary for Pag-IBIG membership purposes.
Voluntary Membership and Employee Contributions (Section 2)
- These barangay officials can apply to become Pag-IBIG members voluntarily.
- Their contributions are deducted monthly from their honoraria according to RA 7742 and its rules.
Employers’ Contribution and Funding Source (Section 3)
- Employers’ counterpart contributions come from barangay local funds.
- Appropriation of funds must be by the respective Sangguniang Barangay.
- Contributions cannot exceed the personal services cap as per Section 325(a) of the Local Government Code.
Application of Republic Act No. 7742 Provisions (Section 4)
- All relevant provisions of RA 7742 apply to barangay officials who are voluntary Pag-IBIG members.
- They are accorded the rights and privileges under the law.
Repealing Clause (Section 5)
- Any orders, rules, or regulations inconsistent with this Executive Order are repealed or amended accordingly.
Effectivity (Section 6)
- The Executive Order is effective immediately upon issuance.