Question & AnswerQ&A (Republic Act No. 897)
The law aims to further amend Republic Act No. 304 by extending benefits of back pay and other related compensations to members of the Philippine Army, recognized guerrilla forces, and officers of the Philippine Scouts and allowing the use of certificates of indebtedness for purchasing public lands, payment of obligations, and others.
Officers, employees, persons under contract with the Commonwealth Government, officers and enlisted men of the Philippine Army and officers of the Philippine Scouts with assimilated ranks, civilians who joined resistance movements, and recognized guerrilla forces serving during the Japanese occupation are covered.
(a) Officers and enlisted personnel of the US Army or Navy, (b) those found guilty of treason, espionage, or disloyalty during occupation, and (c) officers and employees who received salaries from the Refugee Government of the Commonwealth of the Philippines abroad.
Back pay covers the period from January 1, 1942, up to September 23, 1945, or up to September 26, 1945, for members of the Philippine Army, recognized guerrilla forces, and officers of the Philippine Scouts.
Applicants have one year from the approval of this amendatory Act to apply for recognition.
A certificate of indebtedness is a government-issued instrument acknowledging the right to back pay, which can be used for paying obligations to the government, taxes, hospital bills, purchase or lease of public lands, or refunding pensions/gratuities to the government.
Such certificates are to be redeemed by the government within thirty years from the date of issuance without interest, depending on fund availability determined by the National Treasurer.
Back pay is computed at the salary, emoluments, fees, allowances, per diem, compensation, or wage rate in effect on January 1, 1942, for the City of Manila and on the date immediately before occupation for provincial/city offices.
It is based on the authorized pay and allowances for Philippine Army personnel as of April 9, 1942, and the rank held as of May 7, 1942, or the rank recognized at induction into the US Army for guerrillas.
Any three-month advance salary given under Administrative Order No. 167 of December 12, 1941, and any two-month gratuity paid under Administrative Order No. 27 and Executive Order No. 83 of December 1945, shall be deducted from back pay.
The Commission consists of the Chairman of the Philippine Veterans Board, Undersecretary of National Defense, and the National Treasurer; it administers back pay grants to USAFFE personnel, recognized guerrillas, and Philippine Scouts, issues back pay certificates, and can request personnel assistance from other departments.
Failure to file within the one-year period will result in forfeiture of any rights to back pay or wages which could have been due.
No, certificates of indebtedness shall not be transferred or ceded by endorsement more than once and not at a discount rate exceeding two percent per annum.
Any person who is not an alien, bank, or financial institution with at least 60% Filipino ownership can accept or discount the certificates at no more than 3.5% per annum for ten years.