Administrative Ordinance No. 20


November 19, 1942

ARTICLE 1. With respect to the payment of salaries, wages and recompenses (hereafter to be known as salaries) of employees, all government offices, banks, business firms, corporations and associations (hereafter to include branches and agencies) must deduct from the salaries of each employee the amount calculated according to the schedule mentioned below, and the amount so deducted is to be deposited with the banking and financial institutions by the employer, provided, however, that the above provision shall not be applied to the person receiving salaries not exceeding ₱200 per month:

(1) Thirty percent upon the amount by which such total salaries exceed P200 but not exceeding ₱300 per month.

(2) Forty percent upon the amount by w such total salaries exceed ₱300 per month.

(3) All the sums in excess of ₱500, if any cash payment of salaries exceed the sum of ₱500 after the above-prescribed amounts have been deducted.

ART. 2. The deposits prescribed in the preceding article must be made under the respective names of individual employees, but the corresponding deposit receipts, certificates or pass books should be kept en bloc by the employer and not to be delivered to any employee.

ART. 3. The deposits provided in this ordinance shall not be allowed to be withdrawn unless otherwise permitted by the Japanese Military Administration, provided that the depositor shall have no more duty to deposit on account of the death, resignation or transfer outside of the Philippines. All payments of deposits shall be made by crossed cheques.

ART. 4. The banking and financial institutions shall specially mark “Forced saving account” on the deposit receipts, certificates or pass books for the deposits provided for in this ordinance.

ART. 5. The government offices, banks, business firms, corporations, and associations are required to report to the office of the Japanese Military Administration the names of banking and financial institutions with which the deposits are made, the number of depositors, the amounts of deposits and withdrawals and the aggregate amount of deposit balance as of the end of June and December of every year.

ART. 6. Any head officer, director, president, manager or representative and person in charge of the government offices, banks, business firms, corporations and associations who violates the above mentioned provisions shall be severely punished in accordance with the Military Laws.


This Ordinance shall be enforced on and after the first day of December, 1942, at any place in the Philippines where the licensed banking and financial institutions are located.

The outstanding balances deposited under the proclamation concerning method of payment of salaries, dated 23rd of January, 1942, shall be transferred to the new accounts.


Source: Office of the Solicitor General Library