Amends RA 304 on back pay for military and gov't employees

Applications for recognition of back pay must be filed with the Treasurer of the Philippines within one year from the approval of the Act.
The Treasurer will acknowledge and file requests under rules promulgated by the Secretary of Finance.
Applicants receive a notice stating the total amount due and a certificate of acknowledgment guaranteeing redemption by the government within ten years without interest.
Certificates of Indebtedness may be issued covering all or part of recognized salaries or wages.

Certificates can be used to pay:
1. Obligations to the Government or its branches and government-controlled corporations.
2. Taxes.
3. Government hospital bills.
4. Purchase or lease of public lands.
5. Refund of gratuities or pensions.
Certificates are non-transferable more than once and cannot be discounted at rates above 2% per annum.
Certain Philippine entities can accept or discount certificates at up to 3.5% for ten years.
For Philippine Army members, recognized guerrilla forces, and Philippine Scouts, redemption period extends to thirty years dependent on government funds.
Failure to apply within the specified period results in forfeiture of back pay rights.

Computed based on salaries, emoluments, fees, allowances, per diems, etc., as of January 1, 1942, for Manila or the date before occupation for other provinces.
Obligation is on the government branch or unit employing the person as of December 8, 1941, or if merged/nonexistent, on the current employing government entity or the National Government.
For Philippine Army, scouts, and guerrilla forces, the basis is the authorized pay and rank as of April 9, 1942, and May 7, 1942, respectively.
Members of military commissions have back pay basis following the same military pay scale rules.

Three months' advance salary given under earlier administrative orders and two months' gratuity paid in 1945 are deductible from back pay amounts.

Certificates issued to Philippine Army members, guerrillas, and scouts for obligations to the government or third parties shall not exceed the amount of the obligations as of the Act’s approval.
The one-year application limit applies specifically to these military groups.

A Commission comprising the Chairman of the Philippine Veterans Board, the Undersecretary of National Defense, and the National Treasurer is created to implement the Act.
The Commission is headed by the Chairman of the Philippine Veterans Board.
The National Treasurer issues back pay certificates as directed by the Commission.
The Commission may request personnel support from other government offices.
Certificates issued shall not exceed five million pesos a year.