Legal Opinion - Grant of Hazard Pay - Draft

February 17, 2023
HONORABLE MEMBERS OF SANGGUNIANG PANLALAWIGAN
____________
____________
Thru: ___________________________
Vice Governor/Presiding Officer
Dear Honorable SP Members:
This has reference to the committee hearing conducted on ______________

seeking Legal Opinion on the request of ___________________ on the issue of
providing additional benefit specifically hazard pay to prison guards assigned to
the _________ under the office of the ______________.
1) Whether or not Joint Resolution 4 “JOINT RESOLUTION AUTHORIZING

THE PRESIDENT OF THE PHILIPPINES TO MODIFY THE
COMPENSATION AND POSITION CLASSIFICATION SYSTEM OF
CIVILIAN PERSONNEL AND THE BASE PAY SCHEDULE OF
MILITARY AND UNIFORMED PERSONNEL IN THE GOVERNMENT
AND FOR OTHER PURPOSES” can be used as basis to grant hazard pay to
prison guards assigned to Aurora Provincial Jail;
2) Whether or not the Sangguniang Panlalawigan can pass an ordinance

granting hazard pay to prison guards assigned to ________________;
Since the queries are interrelated, we would like to answer the two questions in the
following discussion:
Joint Resolution 4 was issued by the Congress to authorize the sitting President to
modify the compensation and position classification system of civilian personnel
and the base pay schedule of military and uniformed personnel in the government
even without having a law passed in the congress.
Joint Resolution 4 is not the proper reference for the grant of Hazard Pay to prison
guards assigned to Provincial Jail. However, we would like to refer your attention
to Republic Act 11466 signed by the President of January 8, 2020.
A law was passed by the Congress titled “AN ACT MODIFYING THE
SALARY SCHEDULE FOR CIVILIAN GOVERNMENT PERSONNEL
Page 1 of 4
AND AUTHORIZING THE GRANT OF ADDITIONAL BENEFITS, AND
FOR OTHER PURPOSES” or Republic Act 11466 known as "Salary
Standardization Law of 2019".
R.A. 11466 expressly adopted Item 4 of the Joint Circular 4, series of 2009:
XXX
Section 6. Compensation System. - The Total Compensation Framework

established under Item (4) of Joint Resolution No. 4, series of 2009, consisting of
the following components, shall continue to be adopted:
(a) Basic Salaries including Step Increments;

(b) Standard Allowances and Benefits;
(c) Specific-Purpose Allowances and Benefits; and
(d) Incentives.
XXX
Item 4 of Joint Resolution 4, series of 2009 provides that under the Total
Compensation Framework, it included Specific – Purpose Allowances and
Benefits. On the same item, under paragraph g, Specific Purposes Allowances and
Benefits were enumerated and under subparagraph vii, Hazard Pay was defined as:
XXX
(viii) Hazard Pay – This is a premium given only to government personnel exposed
to hazardous situations, such as but not limited to, assignment in strife-torn or
embattled areas, distressed or isolated stations, prison camps (emphasis
supplied), mental hospitals, leprosaria, radiation, - exposed
clinics/laboratories/workshops, disease-infested areas and areas declared under
state of calamity or emergency which pose occupational risks or perils to life.
XXX
Clearly Hazard pay is part of the Total Compensation Framework included in

Specific – Purpose Allowances and Benefits which is allowed to be given to
government workers.
Additionally, Section 10 of RA 11466 provides:
XXX
Section 10. Compensation Adjustment for Personnel of Local Government Units. -

The modified Salary schedule and additional Incentives authorized herein may be
granted to personnel of LGUs subject to compliance with the Personnel Services
(PS) limitation in the LGU budget under Section 325 and 331 of Republic Act No.
7160 and authorization from the Sanggunian as provided under Sections 447(a),
458(a) and 468(a) of Republic Act No. 7160.
Page 2 of 4
XXX
From the provision, we can surmise that the law is allowing Local Government
Units to modify the salary schedule and to grant additional incentives to its
personnel subject to the compliance with the personnel services limitation in the
LGU budget provided in the Local Government Code.
Furthermore, the Department of Budget and Management also provided Local

Budget Circular No. 121 dated January 24, 2020 which provided a guideline on the
Implementation of the First Tranche of the Modified Salary Schedule for Local
Government Personnel Pursuant to Republic Act (RA) No. 11466.
In the said Budget Circular, it is provided under item 5 that:
XXX
5 .0 Compensation System
The TCF established under Item 4 of Joint Resolution No . 42, s. 2009, consisting
of the following components, shall continue to be adopted:
5.1 Basic Salaries including Step Increments;
5.2 Standard Allowances and Benefits;
5.3 Specific-Purpose Allowances and Benefits; and
5.4 Incentives.
XXX
It is clearly established under the law and even in the implementing rules of the
law that the TCF of government employees includes Specific Allowances and
Benefits, which necessarily includes Hazard Pay, the subject matter of this legal
opinion.
The only legal impediment we face is the guideline on the grant of Hazard Pay to
LGU employees since the Budget Circular only provided guideline on
Implementation of the First Tranche of the Modified Salary Schedule in LGUs and
not on the grant of Specific – Purposes and Benefits to employees specifically
Hazard Pay to employees qualified to receive said benefit.
Under item 16 of the same Local Budget Circular, is provided that:
xxx
16 .0 Resolution of Cases
Page 3 of 4
Cases not covered by the provisions of this Circular shall be referred to the DBM
for resolution.
xxx
Since the circular did not touch on the guideline regarding the issuance of Hazard
Pay as additional Benefits to qualified employees, it would be wiser to refer the
matter to DBM so a resolution to the grant of Hazard Pay may be issued.
As to the second query, under Sub - paragraph viii, Paragraph 1, Section 468 of the
The Local Government Code provides:
xxx
(viii) Determine the positions and the salaries, wages, allowances and other
emoluments and benefits of officials and employees paid wholly or mainly from
provincial funds and provide for expenditures necessary for the proper conduct of
programs, projects, services, and activities of the provincial government;
xxx
It is clear from the foregoing provision that passing an ordinance granting

additional benefits to officials and employees are within the powers given to the
Sanggunniang Panlalawigan. These benefits include Specific purposes allowances
and benefits which also includes Hazard Pay.
From the above discussions, we can safely deduce that the Sangguniang
Panlalawigan of Aurora may pass an ordinance to provide hazard pay to the Prison
guards since it is within the power of the Sangguniang Panlalawigan to pass
ordinances to grant additional benefits to officials and employees of the LGU.
However, since no guidelines was issued by the DBM regarding the granting of
such benefit to qualified personnel, it is advised that the matter be referred to DBM
so a guideline may be issued before drafting an ordinance for the grant of the said
benefit/allowance.
Legal Officer
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February 17, 2023

HONORABLE MEMBERS OF SANGGUNIANG PANLALAWIGAN

Dear Honorable SP Members:

This has reference to the committee hearing conducted on ______________

1) Whether or not Joint Resolution 4 “JOINT RESOLUTION AUTHORIZING

2) Whether or not the Sangguniang Panlalawigan can pass an ordinance

Section 6. Compensation System. - The Total Compensation Framework

(a) Basic Salaries including Step Increments;

Clearly Hazard pay is part of the Total Compensation Framework included in

Additionally, Section 10 of RA 11466 provides:

Section 10. Compensation Adjustment for Personnel of Local Government Units. -

Furthermore, the Department of Budget and Management also provided Local

In the said Budget Circular, it is provided under item 5 that:

5.1 Basic Salaries including Step Increments;

5.2 Standard Allowances and Benefits;

5.3 Specific-Purpose Allowances and Benefits; and

Under item 16 of the same Local Budget Circular, is provided that:

It is clear from the foregoing provision that passing an ordinance granting

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