Medal of Valor gratuity entitlement
- Section 2 grants a Medal of Valor awardee a lifetime monthly gratuity of P20,000.
- Section 2 states the gratuity is separate and distinct from any salary or pension the awardee is currently receiving or will receive from the government.
- Section 2 provides that upon the awardee’s death, the gratuity accrues in equal shares and with right of accretion to:
- the surviving spouse until the spouse remarries, and
- the children (legitimate, adopted, or illegitimate) until they reach 18 years of age or until they marry, whichever comes earlier.
- Section 2 exempts the gratuity from inclusion in the computation of gross income and exempts it from taxation under Title III, Chapter VI of Republic Act No. 8424 (the “Tax Reform Act of 1997”).
Coverage: who is included
- Section 2 applies the Act to Medal of Valor awardees under Presidential Decree No. 1687 who have since been integrated to the Philippine National Police (PNP).
- Section 2 provides that appropriations for this coverage shall come from the Philippine National Police.
Adjustment limits for monthly gratuity
- Section 2 authorizes the President, upon the joint recommendation of the Chief of Staff of the Armed Forces of the Philippines, the Secretaries of the Department of National Defense and the Department of Budget and Management, to adjust at a reasonable time and rates the lifetime monthly gratuity.
- Section 2 requires consideration of applicable economic and social factors or indicia, such as the inflation rate, in computing the adjustment rate.
- Section 2 limits increases by providing:
- no increase within three (3) years following effectivity of the Act, and
- no increase oftener than once every five (5) years thereafter.
Additional privileges and benefits
- Section 3 grants a Medal of Valor awardee, his/her widow/widower, and/or dependents (as the case may be) the following privileges and benefits:
- Precedence in employment in government agencies or government-owned or -controlled corporations, provided the awardee or dependent meets job qualifications or requirements.
- Priority in approval of the awardee’s housing application under existing government housing programs.
- Priority in acquisition of public lands under the Public Land Act and a preferential right in the lease of pasture lands and exploitation of natural resources.
- Loan privileges: authority to obtain loans in an aggregate amount not exceeding P500,000 from government-owned or -controlled financial institutions without having to put up collateral or constitute any pledge or mortgage to secure repayment.
- 20% discount from establishments relative to utilization or transportation services, hotels and similar lodging establishments, restaurants, recreation and sport centers, and purchase of medicine anywhere in the country.
- Section 3 allows private establishments to claim the cost as tax credits.
- 20% discount on admission fees charged by theaters, cinema houses and concert halls, circuses, carnivals and other similar places of culture, leisure and amusement.
- Section 3 allows such establishments to claim the cost as tax credits.
- Free medical and dental services and consultation in hospitals and clinics anywhere in the country.
- Section 3 allows private hospitals and clinics to claim the cost of services as tax credit.
Education exemptions and cadet/commission priority
- Section 4 exempts a Medal of Valor awardee and his/her heirs/beneficiaries from the payment of tuition and matriculation fees in public or private schools, universities, colleges, and other educational institutions in pre-school, baccalaureate, or post-graduate courses, including courses leading to:
- Doctor of Medicine (MD),
- Bachelor of Laws (LLB), and
- Bachelor of Science in Nursing (BSN),
and allied and similar courses.
- Section 4 provides that this exemption applies notwithstanding the tuition/matriculation limitation imposed by Presidential Decree No. 577 on the scholarship program of military personnel who died or are incapacitated in line of duty.
- Section 5 provides that a Medal of Valor awardee and/or a son or daughter, upon reaching the age of admission as a cadet/cadette in the Philippine Military Academy, shall be given:
- a quota if interested to join the cadet corps, or
- otherwise priority for direct commission, call to active duty (CAD), and/or enlistment in regular force of the AFP, if qualified.
Criminal prohibition and penalties
- Section 6 penalizes any person who denies a Medal of Valor awardee, his/her widow/widower, and/or dependents or beneficiaries the privileges and benefits due by virtue of the Act.
- Section 6 provides that the penalty for such denial is imprisonment of three (3) years to six (6) years and a fine of P100,000 to P300,000, at the discretion of the court.
- Section 6 provides that if the offender is a public officer at the time of commission, the offender suffers, in addition, perpetual absolute disqualification from public office and loses all retirement or gratuity benefits under the law.
- Section 6 provides that if such public officer has already received retirement or gratuity benefits after separation, the officer must restitute the benefits to the government.
- Section 6 restricts restitution to only amounts received after the commission of the offense.
- Section 6 defines “public officer” to include elective and appointive officials and employees, permanent or temporary, in the classified or unclassified or exemption service, receiving compensation even nominal, from the government.
- Section 6 provides that if the offense is committed by a corporation, association, partnership, or other juridical person, the penalty is imposed on the officers or personnel responsible, without prejudice to filing civil and/or administrative action against the juridical person.
- Section 6 bars persons convicted under the Act from entitlement to the benefits of Presidential Decree No. 968, as amended, the Probation Law of 1976.
Funding and implementation rules
- Section 7 directs that the amount necessary to initially implement the Act shall be charged against the current savings of the Armed Forces of the Philippines.
- Section 7 provides that if available savings are insufficient to fully implement additional benefits, the benefits shall be applied uniformly to all awardees/beneficiaries.
- Section 7 requires that thereafter, sums needed to fully implement the grant of additional benefits shall be included in the annual budget of the Armed Forces of the Philippines.
- Section 8 requires the Secretary of the Department of National Defense, jointly with the Department of Education, Culture and Sports, Department of Health, Department of Transportation and Communications, Department of Finance, and other appropriate government agencies, to issue necessary rules and regulations to carry out the Act’s objectives.
- Section 8 requires that current recipients of the gratuity be granted the additional privileges provided in the Act.
Separability, repeal, and effectivity
- Section 9 provides that if any provision of the Act or its application is declared invalid, the remainder of the Act and the application of provisions to other persons or circumstances are not affected.
- Section 10 repeals Presidential Decree No. 1687 and repeals, modifies, or amends all other laws, rules, regulations, decrees, issuances, or parts inconsistent with the Act.
- Section 11 provides that the Act takes effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier.
- The Act was approved on March 22, 2001.