Section 7Sec./Art. 7

Uses of Income Classification. - The income classification of provinces, cities, and municipalities shall, among other purposes, serve as basis for the following:

(a) Identification of administrative and statutory aids, financial grants, and other forms of assistance to local governments;

(b) Determination of the financial capability of LGUs to undertake developmental programs and priority projects;

(c) Total annual or supplemental appropriation for personal services of an LGU for one (1) fiscal year as provided in Section 325(a) of Republic Act No. 7160;

(d) Compensation adjustment for personnel of the LGUs pursuant to Republic Act No. 11466 or the Salary Standardization Law of 2019: Provided, That LGUs may fully adopt the salary schedules notwithstanding the ceilings under Sections 10(a) and 10(b) of the said law, subject to compliance with the personal services (PS) limitation and budget authorization requirements of Republic Act No. 7160;

(e) Creation of a new LGU provided that the division and merger of an existing LGU shall not downgrade the income classification of the original unit pursuant to Section 8 of Republic Act No. 7160;

(f) Number of elective members in the Sangguniang Panlalawigan and the Sangguniang Bayan as provided under Section 2 of Republic Act No. 6687;

(g) Issuance of a free patent title to residential lands as provided under Republic Act No. 10023, otherwise known as An Act Authorizing the Issuance of Free Patents to Residential Lands;

(h) Minimum wage of domestic workers as provided under Section 24 of Republic Act No. 10361, otherwise known as the Domestic Workers Act or Batas Kasambahay;

(i) LGUs to insure its properties with the Government Service Insurance System (GSIS) in compliance with Section 5 of Republic Act No. 656 or the Property Insurance Law;

(j) Limitation on the percentage of agricultural land area that can be reclassified and the manner of their utilization or disposition as stipulated in Section 20 of Republic Act No. 7160; and

(k) Such other purposes as provided under existing laws and regulations.