Authority, legal basis, and predecessor rules
- The Circular implements the grant of Hazard Duty Pay authorized under the pertinent provisions of the annual General Appropriations Act.
- The Circular’s reporting enforcement refers to Section 57 of EO 292 for sanctions under existing budget rules and regulations.
- DBM National Budget Circular No. 451 supersedes National Compensation Circular No. 76 dated March 31, 1995.
Purpose and governing concept
- The Circular rationalizes the guidelines on the grant of Hazard Duty Pay as authorized under the annual General Appropriations Act.
- Hazard Duty Pay is a compensation premium or allowance generally paid to officials and employees who, because of the nature and/or location of their work, are exposed to hazards.
- Hazard exposure that affects the entire population in a locality as air, land and water borne, and noise hazards is not compensable under the Circular.
Coverage: who may receive
- The Circular covers all government officials and employees under permanent, temporary, or casual status, and contractual personnel whose employment is in the nature of a regular employee.
- It covers personnel whose compensation is charged from lump-sum for the purpose or from personal services component of a project fund, on full-time or part-time basis, for the national government, government-owned and/or -controlled corporations, and government financial institutions.
- It expressly authorizes payment by eligible heads of agencies without needing DBM approval when the conditions under the Circular are met.
Definitions and hazardous work areas
- The Circular defines hazardous work areas as the following categories.
- Difficult/distressed/isolated work areas or hardship posts qualify when characterized by distance, inconvenience of travel due to bad roads and conditions of the terrain, isolation, inaccessibility, and extreme weather conditions, as declared and duly certified by the department secretary concerned or equivalent officer for GOCCs and government financial institutions (Item 5.1).
- Work areas affected by volcanic activity/eruption, including subsequent flow of lahar and other pyroclastic materials, qualify when solely declared and duly certified by the Secretary of Science and Technology upon recommendation of the Director of the Philippine Institute of Volcanology and Seismology (Item 5.2).
- Work areas with direct unavoidable exposure to:
- radiation, communicable/contagious/infectious diseases, and combustible, dangerous, noxious odor/toxic chemicals/gas/biological hazards and substances, qualify when solely declared and duly certified by the Secretary of Health upon recommendation of the inter-agency committee created for the purpose (Item 5.3).
- Work areas with direct unavoidable exposure to hazardous pollutants qualify when solely declared and duly certified by the Secretary of Environment and Natural Resources upon recommendation of the inter-agency committee created for the purpose (Item 5.4).
- Institutions for mental health where exposure to bodily harm and risks from psychiatric patients actually exist qualify when solely declared and duly certified as such by the Secretary of Health (Item 5.5).
- Prison camps/reservations or penal colonies without adequate police protection qualify when declared and duly certified by the Secretary of Justice upon recommendation of the Director of the Bureau of Corrections (Item 5.6).
- Embattled or strife-torn work areas qualify when they refer to the site of armed encounters between government troops and enemy forces and/or enemy initiated attacks, raids or armed ambuscades, and also include work areas with risks due to direct unavoidable exposure to explosives declared and duly certified by the Secretary of National Defense; this includes areas where enemy concentration/training camps are reported to exist (Item 5.7).
- Rescue operations/evacuation sites qualify when rescuers are directly and actually exposed to harm, danger, or occupational risks or perils to life in the course of performing duties, when declared and duly certified by the Chairman of the National Disaster Control Coordinating Council (NDCCC) upon recommendation of the Director of the Office of Civil Defense (OCD) (Item 5.8).
Exemptions and priority rules
- The Circular exempts officials and employees assigned or stationed to work areas where the entire population in a locality is also exposed to the same air, land and water borne, and noise hazards (Item 4.1).
- The Circular exempts officials and employees entitled to Hazard Duty Pay under special laws, charters, or enabling acts already implemented (Item 4.2).
- Where a person would appear to be entitled to more than one type of Hazard Duty Pay due to the peculiar nature of work, the person is allowed to receive just one type that is more advantageous (Item 6.6).
Authorization, eligibility period, and administrative duties
- Heads of national government agencies, including GOCCs and government financial institutions, are authorized to grant Hazard Duty Pay in accordance with the Circular without DBM approval (Item 6.1).
- If more incentives are needed to attract qualified applicants, authorized Hazard Duty Pay rates may be augmented, subject to DBM approval (Item 6.2).
- Entitlement is coterminous with the duration of the actual assignment in the hazardous work areas enumerated under Item 4, or with the existence of such danger or peril, but in no case shall it exceed three (3) months unless renewed with subsequent authority in accordance with the Circular (Item 6.3).
- Part-time officials and employees receive half of the amount received by a full-time official or employee in the same situation (Item 6.4).
- Officials and employees on full-time or part-time detail with another agency receive Hazard Duty Pay paid by their mother agency (Item 6.5).
- Where persons are certifying hazardous work areas, certifying officials may issue specific guidelines on limits and period of exposure in addition to general guidelines (Item 6.8).
- Certifying officials must immediately copy-furnish the CPCB/RCS/ROs of DBM of any declaration and certification issued concerning hazardous work areas (Item 6.9).
- Agencies must submit to the Compensation and Position Classification Bureau (CPCB), Regional Coordination Service (RCS), or Regional Offices (ROs) of DBM a list of officials and employees granted Hazard Duty Pay using Annex A not later than fifteen (15) days after the end of each quarter of a fiscal year (Item 6.7).
- Failure to submit the quarterly list subjects the agency to appropriate sanctions under existing budget rules and regulations pursuant to Section 57 of EO 292 (Item 6.7).
- Cases not covered by the Circular’s provisions must be submitted to DBM for resolution (Item 11).
Hazard Duty Pay rates and limits
- Officials and employees actually assigned or stationed in hazardous work areas under Items 5.1 to 5.7 receive Hazard Duty Pay at these rates (Item 7.1):
- 1 to 10 days: PHP 400 monthly
- 11 to 20 days: PHP 500 monthly
- 21 to 31 days: PHP 600 monthly
- Officials and employees directly involved in rescue operations under Item 5.8 receive Hazard Duty Pay at the maximum rate per month regardless of the period of exposure (Item 7.2).
- Hazard Duty Pay rates are subject to change based on the annual General Appropriations Act (Item 7.3).
- Officials and employees under any of the following instances for more than one (1) full calendar month are not entitled to Hazard Duty Pay (Item 8):
- on vacation, sick or study leave with or without pay
- on maternity or terminal leave
- on summer vacation
- on full-time detail with another agency or special project of another agency, on attendance in training course/scholarship grant/seminar, or on any similar activity, and on official travel outside their official station not among those enumerated in Item 5
- Otherwise, officials and employees are authorized Hazard Duty Pay under the Circular (Item 8).
Funding, accountability, and consequences
- For national government agencies, Hazard Duty Pay is charged against the specific appropriation for the purpose as provided in the Personal Services Itemization (Item 9.1).
- Where no funds are appropriated for national government agencies, amounts are charged against savings from released allotment for current operating expenditures, provided all authorized mandatory expenses have been paid first (Item 9.1.1).
- Any amount utilized out of savings from PS, whether or not realigned from MOOE, to cover Hazard Duty Pay must be deducted from any claims from the Miscellaneous Personnel Benefits Fund (MPBF) (Item 9.1.2).
- Savings can be determined only after the third quarter (Item 9.1.3).
- For GOCCs and government financial institutions, Hazard Duty Pay is charged against their respective corporate funds (Item 9.2).
- The head of agency is responsible and held personally liable for any payment of Hazard Duty Pay not in accordance with the Circular, without prejudice to the refund of any excess payment by the official or employee concerned (Item 10).
Supersession and continuity
- DBM National Budget Circular No. 451 supersedes National Compensation Circular No. 76 dated March 31, 1995 (Item 12).