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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Hazard pay is an additional compensation for performing hazardous duties and for enduring physical hardships in the course of performance of duties.
It may be granted to public health workers only if the nature of the duties and responsibilities of their positions, their actual services, and location of work expose them to great danger, occupational risks, perils of life, and physical hardships; and only during periods of actual exposure to hazards and hardships. (DBM-DSWD Joint Circular No. 1-Series of 2018)
Recently, following the declaration of a State of Public Health Emergency in 2020 in recognition of the COVID-19 pandemic where COVID-19 was regarded as a threat to national security, Administrative Order No. 26, series of 2020 (A.O. No. 26, s. 2020) was issued.
It authorized the grant of hazard pay to government personnel who are exposed to hazardous situations, such as, but not limited to, disease-infected places, which pose occupational risks and perils of life. It must be noted, however, that the grant of hazard pay is entitled only to those government personnel who physically report for work during the period of implementation of enhanced community quarantines.
A.O. No. 26, s. 2020 provides:
“SECTION 1. Grant of the COVID-19 Hazard Pay. National government agencies (NGAs) including state universities and colleges (SUCs) and government-owned or -controlled corporations (GOCCs), are authorized to grant COVID-19 Hazard Pay to personnel who physical report for work during the implementation of an Enhanced Community Quarantine in their respective work stations, in an amount not exceeding P500 per day per person, which shall be computed as follows:
|
COVID-19 Hazard Pay |
= |
P500 |
x |
number of days physically reporting for work during the quarantine period |
(Section 1, A.O. No. 26, s. 2020)
Conditions for the grant of Hazard Pay under A.O. No. 26, s. 2020
According to the administrative order, heads of government agencies may grant the COVID-19 Hazard Pay to their personnel without the need for further approval of the Department of Budget and Management (DBM), provided that the following conditions are met:
- The personnel are occupying regular, contractual or casual positions, or are engaged through COS, JO or other similar schemes;
- The personnel have been authorized to physically report for work at their respective offices or work stations on the prescribed official working hours by the head of agency or office during the period of implementation of Enhance Community Quarantine measures in the area of such office or work station; and
- The rate of COVID-19 Hazard Pay shall be based on the number of days an employee physically reports for work using the formula under Section 1 thereof. (Section 2, A.O. No. 26, s. 2020)
Prohibition against double compensation
Hazard pay shall not be given on top of existing and similar benefits. Section 1, A.O. No. 26, s. 2020 provides that:
“Personnel who are already entitled to Hazard Pay, Hazardous Duty Pay, Hazard Allowance and other similar benefits under existing laws, issuances, rules and regulations, such as public health workers, public social works, science and technology personnel and military and uniformed personnel, shall continue to be entitled to such benefits or the COVID-19 Hazard Pay, whichever is higher.” (Section 1, A.O. No. 26, s. 2020)
Question: Are private employees entitled to receive hazard pay?
Answer: No.
Hazard pay is not a statutory benefit entitled to employees in the private sector under the Labor Code. While there is no law making the payment of hazard pay compulsory for private employers, the Department of Labor and Employment (DOLE) recommends hazard pay for private sector workers, especially those working as medical frontliners in private hospitals and institutions.
Should hazard pay be granted by the employer, the employer determines the amount of compensation for such grant.
Read also: What is the effect of business closure on holiday pay?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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