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This Circular is issued to provide guidelines on the compensation of barangay officials/personnel pursuant to the Local Government Code (RA 7160), the Compensation and Position Classification Act (RA 6758, as amended) and Administrative Order No. 42, s. 1993.

2
Guidelines

2.1 The Local Government Code (RA 7160) provides for the minimum compensation of barangay officials at P1,000 per month for the punong barangay and P600 per month for the sangguniang barangay members, barangay secretary and barangay treasurer. It further provides authority to the sangguniang barangay to create positions as may be deemed necessary to carry out the purposes of the barangay government and to provide compensation thereto.

2.2 The compensation of barangay officials may be increased from minimum prescribed under the LGC subject to the following conditions:

SG-14	for the punong barangay
SG-10	for the sanggunian barangay members, barangay secretary and barangay treasurer

2.3 Positions other than those of the mandatory officials which may be created in the barangay shall be compensated, subject to the following conditions:

POSITIONS	SALARY GRADE
Utility Worker	1
Clerk I	3
Accounting Clerk I	4
Barangay Health Aide	4
Revenue Collection Clerk I	5
Day Care Worker I	6
Administrative Assistant	8

2.4 Regular salaried barangay officials/employees whose positions are classified in accordance with RA 6758 and whose appointments are made in accordance with the Civil Service law, rules and regulations may be entitled to the PERA, Additional Compensation, Year-End Benefits and other Productivity Incentive Benefits and other benefits accruing to other regular government employees at rates not exceeding the rates as provided for by the pertinent law or Presidential authority and guidelines authorizing the same. The grant thereof shall be subject to availability of local funds and to the general/budgetary limitations prescribed under RA 7160.

2.5 Officials and employees other than those referred to in item 2.4 are not entitled to the aforementioned benefits except for the elective and mandatory appointive officials whose entitlement to the year-end benefits is specifically provided for by law.

3
Separability Clause

Compensation rate approved and granted by the respective Sangguniang of LGU at higher rates before the issuance of this Circular may continue to be received by the concerned barangay official. However, such higher rates shall be coterminous with the present incumbent of the position.

4
Saving Clause

Cases not covered by the provisions of this Circular shall be referred to the Secretary of Budget and Management for resolution.

5
Effectivity

This Circular shall take effect immediately.

Adopted: 7 July 1995

(SGD.) SALVADOR M. ENRIQUEZ, JR.
Secretary

"Annex A"

Computation of Honoraria Increase Proportionately and Uniformly Applied

Barangay A, a barangay in a second class municipality, has only P 2,000 a month available for the increase in honoraria of its officials, namely the punong barangay, sangguniang barangay members, barangay secretary and barangay treasurer.

Said increase shall be computed as follows: