SC nullifies circulars on health workers’ hazard pay

The Supreme Court has nullified the two 2012 Department of Budget and Management (DBM) circulars that deprived health workers of hazard pay and other benefits under Republic Act 7305 or the Magna Carta of Public Health Workers.

In a 19-page decision, the high court, through Associate Justice Diosdado Peralta said the DBM-DOH (Department of Health) circular as well as the Civil Service Commission-DBM Joint circular s. 2012  are invalid for depriving health workers of hazard pay and other benefits under the law.

Members of the Philippine Public Health Association Inc. (PPHAI) sought the high court’s intervention to nullify both the DBM-DOH and CSC-DBM circulars.

Specifically, PPHAI said the said circular deprives the health workers of hazard pay and other Magna carta benefits and the implementation of one provision of CSC-DBM Joint Circular which allegedly deprives officials and employees including PHWs to be granted both Longevity Pay and Increment Pay due to Length of Service.

PPHAI, in its petition said the administrative circulars were issued in excess of jurisdictions and with grave abuse of discretion as they did not pass the substantive procedural requirement of publication and consultation.

It urged the court to set aside the rules and made a categorical ruling on Longevity Pay and Increment Pay as two distinct benefits and prays that the benefits be included in the annual budget proposal to Congress.

In its ruling, the high court said DBM-DOH Circular is invalid “”insofar as it lowers hazard pay at rates below the minimum”  prescribed under the Magna Carta. 

Section 21 of R.A. 7305 and Section 7.1.5 (a) of its RIRR provides that public health workers shall be compensated hazard allowances equivalent to at least 25 percent of the monthly basic salary of health workers, receiving salary grade 19 and below, five percent for health workers with salary grade 20 and above.

Such benefits may be granted on a monthly, quarterly or annual basis.

“Thus, the rates embodied in Section 7.2 of DBM-DOH Joint Circular must be struck down as in valid for being contrary to the mandate of R.A. No. 7305 and its Revised IRR,” the high court said.

But the high court affirmed the validity of the DBM-DOH Joint Circular as to the qualification of actual exposure to danger for the PHWs entitlement to hazard pay, the rates of P50 and P25 subsistence allowance, and the entitlement to longevity pay on the basis of the PHWs status in the plantilla.

On the other hand, CSC-DBM Joint Circular is unenforceable insofar as it provides that an official or employee authorized to be granted longevity pay under an existing law is not eligible for the grant of Step Increment due to length of service.

Based on its  review of R.A. 7305 and its Revised Implementing Rules and Regulations (RIRR), the high court  said that it is clear that  the law does not impose a condition on the grant of longevity pay to public health workers (PHWs) in the government service.

“As such, the DBM-CSC Joint Circular effectively created a new imposition which was not otherwise stipulated in the law it sought to interpret,” the Court ruled.

Nine of the magistrates  —  Associate Justices Antonio Carpio, Presbitero Velasco, Jr., Teresita Leonardo-de Castro, Arturo Brion, Lucas Bersamin, Martin Villarama, Jose Portugal Perez, Jose Catral Mendoza, and Estela Perlas-Bernabe — concurred with the ruling.

Associate Justice Marvic Leonen issued a separate concurring and dissenting opinion while Associate Justice Francis Jardeleza took no part from the case.

Chief Justice Ma. Lourdes Sereno, Associate Justice Mariano del Castillo, Bienvenido Reyes were on leave when the case was promulgated.