Gratuity and Privileges for Medal of Valor Awardees

Policy and purpose

The State must consistently honor military heroes to strengthen patriotic spirit and nationalist consciousness of the military.
The State must give due recognition to a Medal of Valor awardee for supreme self-sacrifice and distinctive acts of heroism and gallantry.
The State must provide adequate social services and financial rewards to encourage heroic deeds for the country.

Entitlement to lifetime monthly gratuity

A Medal of Valor awardee is entitled to a lifetime monthly gratuity of Twenty thousand pesos (P20,000).
The P20,000 gratuity is separate and distinct from any salary or pension the awardee is receiving or will receive from the government.
On the death of the awardee, the gratuity accrues in equal shares to the surviving spouse until the surviving spouse remarries, and to the children (legitimate, adopted, or illegitimate) until they reach eighteen (18) years old or until they marry, whichever comes earlier.
The gratuity is excluded from the computation of gross income and is exempt from taxation under Title III, Chapter VI of Republic Act No. 8424 (the “Tax Reform Act of 1997”).
Republic Act No. 9049 applies to Medal of Valor awardees under Presidential Decree No. 1687 who have since been integrated to the Philippine National Police (PNP).
Appropriations for the gratuity under the PNP integration apply from the Philippine National Police.

Adjustment of gratuity amounts

The President is authorized to adjust at a reasonable time and rates the lifetime monthly gratuity of the awardees.
The President’s adjustment authority requires the joint recommendation of the Chief of Staff of the Armed Forces of the Philippines and the Secretaries of the Department of National Defense and the Department of Budget and Management.
In computing the rate of adjustment, the President must consider applicable economic and social factors, including the inflation rate.
No increase is authorized within three (3) years following the effectivity of Republic Act No. 9049.
No increase may be authorized more than once every five (5) years thereafter.

Privileges and benefits granted

A Medal of Valor awardee, the awardee’s widow/widower, and/or dependents/beneficiaries are entitled to precedence in employment in government agencies or government-owned or -controlled corporations, provided the awardee or dependent meets the job qualifications or requirements.
The same group is entitled to priority in the approval of the awardee’s housing application under existing housing programs of the government.
The same group is entitled to priority in acquisition of public lands under the Public Land Act, and to a preferential right in the lease of pasture lands and exploitation of natural resources.
The same group is entitled to obtain loans in an aggregate amount not exceeding Five hundred thousand pesos (P500,000) from government-owned or -controlled financial institutions without putting up collateral or constituting a pledge or mortgage.
The same group is entitled to a twenty percent (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.
Private establishments granting the twenty percent (20%) discount may claim the cost as tax credits.
The same group is entitled to a twenty percent (20%) discount on admission fees charged by theaters, cinema houses and concert halls, circuses, carnivals and other similar places of culture, leisure and amusement.
Those establishments may claim the cost as tax credits.
The same group is entitled to free medical and dental services and consultation in hospital and clinics anywhere in the country.
Private hospitals and clinics may claim the cost of services as tax credit.

Education and military-career priority

An awardee and his/her heirs/beneficiaries are exempted from the payment of tuition and matriculation fees in public or private schools and educational institutions for pre-school, baccalaureate, or post-graduate courses.
The exemption covers courses leading to Doctor of Medicine (MD), Bachelor of Laws (LLB), and Bachelor of Science in Nursing (BSN), and allied and similar courses.
The exemption applies notwithstanding the tuition and matriculation limitations on scholarship programs under Presidential Decree No. 577 for military personnel who died or are incapacitated in line of duty.
Upon reaching the age of admission as a cadet/cadette in the Philippine Military Academy, an awardee or his/her son or daughter is entitled to a quota if interested to join the cadet corps.
If not joining the cadet corps, an awardee’s son or daughter is given priority for direct commission, call to active duty (CAD), and/or enlistment in the regular force of the AFP, if qualified.

Criminal penalties and disqualification

Any person who denies a Medal of Valor awardee, his/her widow/widower, and/or dependents or beneficiaries the privileges and benefits due under Republic Act No. 9049 is punishable by imprisonment of three (3) years to six (6) years and a fine of One hundred thousand pesos (P100,000) to Three hundred thousand pesos (P300,000) at the discretion of the court.
If the offender is a public officer at the time of the offense, the offender must suffer perpetual absolute disqualification from public office and lose all retirement or gratuity benefits under the law, in addition to the penalties above.
If such public officer had already received retirement or gratuity benefits before separation, the public officer must restitute those benefits to the government.
Restitution covers only amounts received after the commission of the offense.
For purposes of perpetual absolute disqualification and restitution, “public officer” includes elective and appointive officials and employees, permanent or temporary, whether in the classified or unclassified or exemption service, receiving compensation even nominal from the government.
If the offense is committed by a corporation, association, partnership, or other juridical person, the penalty is imposed on the responsible officers or personnel, without prejudice to filing civil and/or administrative action against the juridical person.
A person convicted under Republic Act No. 9049 is not entitled to the benefits of Presidential Decree No. 968, as amended (the Probation Law of 1976).

Funding and implementation rules

Initial implementation of Republic Act No. 9049 is charged against the current savings of the Armed Forces of the Philippines.
If available savings are insufficient to fully implement additional benefits, the additional benefits must be applied uniformly to all awardees/beneficiaries.
After initial implementation, sums needed to fully implement the additional benefits must be included in the annual budget of the Armed Forces of the Philippines.
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, shall issue necessary rules and regulations to carry out Republic Act No. 9049.
Current recipients of the lifetime monthly gratuity must likewise be granted the additional privileges provided for in Republic Act No. 9049.

Separability, repeals, and effect

If any provision of Republic Act No. 9049 or its application to any person or circumstance is declared invalid, the remainder of Republic Act No. 9049 remains effective and the invalidity does not affect the application of the remaining provisions to other persons or circumstances.
Presidential Decree No. 1687 is repealed.
All other laws, rules, regulations, decrees, issuances, or parts inconsistent with Republic Act No. 9049 are repealed, modified, or amended accordingly.