Gratuity and Privileges for Medal of Valor Awardees

Awardees entitled to a lifetime monthly gratuity of ₱20,000.
Gratuity is separate from salary or pension.
Upon death, gratuity shared among surviving spouse (until remarriage) and children (until 18 years old or marriage).
Gratuity exempt from income tax under RA 8424 (Tax Reform Act of 1997).
Applicable to awardees under Presidential Decree No. 1687 integrated into PNP; appropriations for PNP awardees come from PNP funds.
The President, upon joint recommendation, may adjust gratuity rates considering economic and social factors such as inflation.
Increases allowed no sooner than three years after effectivity and not more than once every five years thereafter.

Employment precedence in government or government-owned entities if qualified.
Priority in government housing applications.
Priority in acquisition and lease of public lands, pasture lands, and natural resources.
Access to unsecured loans up to ₱500,000 from government financial institutions.
20% discount in transportation, lodging, restaurants, recreation, sports, and medicine purchases nationwide; private establishments may claim tax credits.
20% discount on admission fees in theater, cinemas, concert halls, circuses, carnivals, and similar venues; such establishments may claim tax credits.
Free medical and dental services and consultations in hospitals and clinics; private medical institutions may claim tax credits.

Exemption from payment of tuition and matriculation fees in any public or private educational institution.
Applicable from pre-school to post-graduate courses, including degrees such as MD, LLB, BSN, and allied courses.
Overrides limitations in Presidential Decree No. 577 concerning scholarships for military personnel.

Medal of Valor awardees or their sons/daughters given quota for admission to the Philippine Military Academy as cadets/cadettes.
Priority for direct commission, call to active duty, or enlistment in the Armed Forces of the Philippines if qualified.

Denying benefits or privileges entails imprisonment of three to six years and fines from ₱100,000 to ₱300,000.
Public officers committing denial face additional penalties: perpetual absolute disqualification from public office, forfeiture of retirement or gratuity benefits.
Restitution required if benefits already received after the offense.
Definition of public officer includes elected or appointed officials/employees receiving government compensation.
Corporations or juridical persons denying benefits have responsible officers penalized; civil/administrative actions may also apply.
Convicted persons barred from probation law benefits under PD No. 968.

Initial funding charged against current Armed Forces of the Philippines savings.
If savings insufficient, benefits granted uniformly across awardees.
Subsequent funding included in Armed Forces of the Philippines annual budget.

Secretary of Department of National Defense, jointly with Department of Education, Culture and Sports, Department of Health, Department of Transportation and Communications, Department of Finance, and other agencies, tasked to issue implementing rules and regulations.
Current gratuity recipients also entitled to new privileges provided.

Invalidity of any provision or its application does not affect the remainder or other applications of the Act.

Repeals Presidential Decree No. 1687.
Modifies or repeals inconsistent laws, rules, regulations, decrees, or issuances.

The Act takes effect 15 days after its complete publication in the Official Gazette or two national newspapers, whichever occurs first.