In the Philippine hierarchy of local government units, the Barangay serves as the primary planning and implementing unit of government policies. Unlike officials in higher LGUs (Municipal, City, or Provincial) who receive fixed salaries under the Salary Standardization Law (SSL), barangay officials are generally considered "persons in authority" who serve on a per-diem or honorarium basis.

Their compensation is governed primarily by Republic Act No. 7160, otherwise known as the Local Government Code of 1991 (LGC), and supplemented by various circulars from the Department of Budget and Management (DBM).

1. Honoraria vs. Salary: The Legal Distinction

Under Section 393 of the LGC, barangay officials do not receive "salaries." Instead, they are entitled to honoraria, which are defined as voluntary compensations for services rendered by those for whom no fixed salary is provided by law.

Punong Barangay: Minimum of ₱1,000.00 per month.
Sangguniang Barangay Members, Treasurer, and Secretary: Minimum of ₱600.00 per month.

Note: While these are the statutory minimums set in 1991, current rates are significantly higher due to subsequent Executive Orders and DBM Wage Orders, often tied to the financial capacity of the specific barangay.

2. Current Compensation Benchmarks

As of the latest DBM guidelines (specifically following Executive Order No. 201 and subsequent updates), barangay officials may receive increased honoraria provided the barangay has sufficient funds.

Maximum Limits: The honoraria cannot exceed the salary grade (SG) equivalents set for the municipality or city where the barangay is located. Usually, the Punong Barangay's honorarium is pegged to SG 14, while other officials are pegged to SG 10.
Adjustment Factor: The actual amount is subject to the Personal Services (PS) Limitation (the "45%-55% Rule").

3. Statutory Benefits and Allowances

Beyond the monthly honorarium, barangay officials are entitled to a specific suite of benefits mandated by the LGC and other special laws:

Christmas Bonus: A year-end bonus, typically at least ₱1,000.00, or as determined by the DBM.
Insurance Coverage: Under RA 8291, officials are covered by the Government Service Insurance System (GSIS). This includes death benefits, disability benefits, and burial expenses.
Medical and Hospitalization Benefits: Officials are entitled to free medical care in any government hospital. In cases of extreme emergency where no government hospital is available, they may be reimbursed for private hospital expenses up to a certain limit.
Educational Benefits: The Punong Barangay and Sangguniang Barangay members (including their legitimate children) are entitled to tuition waivers in state colleges and universities (SUCs) within the province or city.
Civil Service Eligibility: Under PD 1468, officials who serve a certain number of terms are granted "Barangay Official Eligibility," which is equivalent to a Sub-Professional or Professional Civil Service eligibility depending on the length of service and position.

4. Special Provisions for SK and Appointees

Sangguniang Kabataan (SK) Chairperson: Receives the same honoraria and benefits as a regular Sangguniang Barangay member by virtue of their ex-officio seat.
SK Members, Secretaries, and Treasurers: Under the SK Reform Act (RA 10742) and its 2022 amendment (RA 11768), SK members are now entitled to monthly honoraria, provided it does not exceed 25% of the SK's total annual budget.
Barangay Tanods and Health Workers: They are entitled to "allowances" and other benefits as determined by the Sangguniang Barangay, subject to the availability of funds and PS limitations.

5. Financial Constraints: The PS Limitation

The computation of honoraria is strictly bounded by Section 325(a) of the LGC. A barangay cannot spend more than:

55% of its total annual income for Personal Services (PS) if it is a 1st to 3rd class LGU.
45% if it is a 4th class LGU or lower.

If increasing the honoraria would cause the barangay to exceed these caps, the increase is legally disallowed, and the officials must revert to the previous year's rates.

6. Leave Credits and Terminal Leave Pay

Unlike regular government employees, barangay officials generally do not earn leave credits (Vacation/Sick Leave) because they are not covered by the standard Civil Service rules on working hours (8-to-5 schedule). Consequently, they are not entitled to Terminal Leave Pay upon the expiration of their term, as there are no "commutable" leave credits to liquidate.

Summary Table: Primary Entitlements

Benefit	Legal Basis	Applicability
Honorarium	RA 7160, Sec. 393	Monthly; variable based on funds
13th Month/Bonus	DBM Circulars	Annual; equivalent to one month honorarium
GSIS Insurance	RA 8291	Death, Disability, Burial
Tuition Waiver	RA 7160, Sec. 393	Official and legitimate children (SUCs)
CS Eligibility	PD 1468	After completion of term requirements