A quick look at the rules and restrictions surround hazard pay for the federal workforce.
This article is for feds who are paid by the General Schedule (GS), not those who are paid under the wage system, although they do have a comparable benefit known as “environmental differential pay.”
When employees are assigned duties that involve a specific danger or physical hardship that is outside of their original job description’s listed knowledge, skills, and abilities, and also out of their control, they might be eligible for “premium hazardous duty pay.” The circumstances that constitute as hazardous must be properly authorized by the employing agency beforehand. A federal worker can’t go into a dangerous work environment on their own accord and expect to receive an authorization for hazard pay after the fact.
If the hazard duty premium is authorized, it applies to the whole workday where such duties were performed. This even goes for paid leave, but the employee does have to work at least one hour on that date. But if he or she takes one to seven hours of annual leave for the remainder of their workday, they will receive the premium for all of those hours. And while overtime hours are also included in approved workdays, any premium for such hours are calculated at the employee’s basic rate of pay and not the overtime pay rate.
Work environments and situations that be considered hazardous in terms of authorizing the hazard premium include:
When an agency it approves hazard pay for an individual, or group of individuals, it also provides a pay differential rate. This figure is multiplied by the federal employee’s hourly rate of pay, and then that product is multiplied by the number of applicable hours worked. The total amount of the premium pay cannot exceed 25% of the employee’s basic pay.
Note that if a member of the federal workforce is receiving annual premium pay, they cannot also receive hazard premium pay. Likewise, neither can a federal investigator who is working on availability pay. Hazard pay is also not to be included when computing overtime, holiday pay, Sunday premium pay, TSP deductions, FEGLI premiums, or retirement income from either FERS or CSRS.
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Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
A quick look at the rules and restrictions surround hazard pay for the federal workforce.
This article is for feds who are paid by the General Schedule (GS), not those who are paid under the wage system, although they do have a comparable benefit known as “environmental differential pay.”
When employees are assigned duties that involve a specific danger or physical hardship that is outside of their original job description’s listed knowledge, skills, and abilities, and also out of their control, they might be eligible for “premium hazardous duty pay.” The circumstances that constitute as hazardous must be properly authorized by the employing agency beforehand. A federal worker can’t go into a dangerous work environment on their own accord and expect to receive an authorization for hazard pay after the fact.
If the hazard duty premium is authorized, it applies to the whole workday where such duties were performed. This even goes for paid leave, but the employee does have to work at least one hour on that date. But if he or she takes one to seven hours of annual leave for the remainder of their workday, they will receive the premium for all of those hours. And while overtime hours are also included in approved workdays, any premium for such hours are calculated at the employee’s basic rate of pay and not the overtime pay rate.
Work environments and situations that be considered hazardous in terms of authorizing the hazard premium include:
When an agency it approves hazard pay for an individual, or group of individuals, it also provides a pay differential rate. This figure is multiplied by the federal employee’s hourly rate of pay, and then that product is multiplied by the number of applicable hours worked. The total amount of the premium pay cannot exceed 25% of the employee’s basic pay.
Note that if a member of the federal workforce is receiving annual premium pay, they cannot also receive hazard premium pay. Likewise, neither can a federal investigator who is working on availability pay. Hazard pay is also not to be included when computing overtime, holiday pay, Sunday premium pay, TSP deductions, FEGLI premiums, or retirement income from either FERS or CSRS.
—-
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
