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DP2021-01: : Estimating the Cost of Regularizing Barangay Officials

There are a total of 45 bills currently filed that seek to establish a Magna Carta for Barangays that will provide barangay officials with compensation at par with City/Municipal Councilors. Currently, the barangay chairperson receives a minimum rate of P1,000 per month while the barangay kagawads, secretary, treasurer, and SK chairpersons receive a minimum of P600. The proposed legislation will entitle the barangay chairpersons to compensation ranging from salary grades 24-27, depending on LGU type. Meanwhile, barangay kagawads will be given eighty percent (80%) of the salary of their barangay chairperson, and the SK chairpersons, barangay secretaries, and treasurers are set to receive seventy-five percent (75%). This paper aims to estimate the funding that the proposed measure entails. Aside from the basic salary, included in the computation of the annual gross compensation of each barangay official are benefits that local elective officials enjoy such as GSIS, Pag-IBIG and PhilHealth contributions, allowances, and bonuses. Based on the estimation, the annual Personal Services expenditure requirement for a barangay located in a municipality outside Metro Manila will amount to about P12.8 million. This is a huge cost for local governments to cover even with the projected increase in the Internal Revenue Allotment.

Congressional Policy, Budget and Research Department
Authors Keywords
Baluyot, Dulce Diana, P,; Villaluz, Coleen Abigail, V; Lamberte, Mario B.; local government; ; Magna Carta for Barangays; regularization of barangay officials; costing; expenditure; estimation; barangay incentives; IRA; compensation; fix salaries for barangay officials;
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