The Supreme Court partially granted a petition filed by public health workers (PHWs) challenging the validity of certain joint circulars issued by the Department of Budget and Management (DBM), Department of Health (DOH), and Civil Service Commission (CSC). The Court upheld the validity of the DBM-DOH Joint Circular concerning hazard pay qualifications, subsistence allowances, and longevity pay eligibility, finding them consistent with the Magna Carta of Public Health Workers. However, it invalidated provisions that lowered hazard pay rates below the minimum required by law and declared unenforceable the DBM-CSC Joint Circular restricting step increments for those receiving longevity pay, because it was not filed with the UP Law Center-ONAR.

Navigating the Benefits Maze: Do Joint Circulars Undermine the Magna Carta for Public Health Workers?

This case arose from concerns raised by officers and members of the Philippine Public Health Association, Inc. (PPHAI) regarding two joint circulars. These circulars, DBM-DOH Joint Circular No. 1, Series of 2012 and DBM-CSC Joint Circular No. 1, Series of 2012, prescribed rules on the grant of benefits to public health workers (PHWs). The petitioners argued that these circulars diminished the benefits granted to them under Republic Act (RA) No. 7305, also known as the Magna Carta of Public Health Workers. RA 7305 aims to promote the social and economic well-being of health workers by providing various allowances and benefits.

The Magna Carta grants PHWs several allowances, including hazard allowance, subsistence allowance, longevity pay, laundry allowance, and remote assignment allowance. Section 21 of RA 7305 addresses hazard allowance, stating that PHWs in specific high-risk environments should receive hazard allowances equivalent to at least 25% of their monthly basic salary (for those with salary grade 19 and below) or 5% (for those with salary grade 20 and above). Section 22 provides for subsistence allowance, entitling PHWs rendering service within hospital or health facility premises to full subsistence allowance for three meals. Longevity pay, according to Section 23, is a monthly payment equivalent to 5% of the monthly basic pay for every five years of continuous, efficient, and meritorious service.

Implementing Rules and Regulations (IRR) were subsequently promulgated to flesh out the law. Specifically, the revised IRR states the eligibility to receive hazard pay applies when the nature of work exposes a worker to high/low risk hazards for at least 50% of their working hours. It also fixes a subsistence allowance at not less than PhP50.00 per day or PhP1,500.00 per month as certified by the head of agency, as well as a monthly longevity pay equivalent to 5% of the present monthly basic pay for every five years of continuous service. Subsequent to these, however, Joint Resolution No. 4 was issued, which provided for certain amendments in the Magna Carta and its IRR.

The petitioners specifically questioned DBM-DOH Joint Circular No. 1, Series of 2012, which tied hazard pay to actual days of exposure, fixed subsistence allowance rates, and limited longevity pay to those holding plantilla positions. They also challenged DBM-CSC Joint Circular No. 1, Series of 2012, which disallowed step increments for those already receiving longevity pay. The petitioners argued that these provisions imposed requirements not found in RA 7305, effectively amending the law. The respondents countered that the circulars were issued within their authority and were consistent with Joint Resolution No. 4, Series of 2009.

The Supreme Court clarified the nature of judicial power. It includes “the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government.” As the Court pointed out, the assailed issuances are a result of the exercise of the respondents’ quasi-legislative and administrative functions.

While acknowledging that petitions for certiorari and prohibition are generally not the appropriate remedies to assail the validity of quasi-legislative acts, the Court proceeded to address the substantive issues due to the public interest involved. Certiorari is available only if a tribunal, board, or officer exercising judicial or quasi-judicial functions has acted without or in excess of jurisdiction, or with grave abuse of discretion amounting to lack or excess of jurisdiction, and there is no appeal nor any plain, speedy, and adequate remedy in the ordinary course of law. Prohibition, on the other hand, is available only if a tribunal, corporation, board, officer, or person exercising functions, judicial, quasi-judicial, or ministerial has acted similarly.

The Court found that the DBM-DOH Joint Circular’s provisions on hazard pay eligibility, subsistence allowance rates, and longevity pay eligibility were consistent with the IRR of RA 7305 and therefore valid. These provisions were deemed reasonable and within the scope of authority granted to the respondents. The Court emphasized that administrative regulations enacted to implement and interpret the law are entitled to great respect and have the force and effect of law.

However, the Court found that the DBM-CSC Joint Circular, which denied step increments to those receiving longevity pay, created a new condition not found in RA 7305 or its IRR. Because of this, and citing existing jurisprudence, the said circular must be filed with the UP Law Center – ONAR. Furthermore, the DBM-DOH Joint Circular, insofar as it similarly withholds the Step Increment due to length of service from those who are already being granted Longevity Pay, the same must likewise be declared unenforceable. As the Court stated:

As such, the DBM-CSC Joint Circular effectively created a new imposition which was not otherwise stipulated in the law it sought to interpret. Consequently, the same exception granted to the DBM-DOH Joint Circular cannot be applied to the DBM-CSC Joint Circular insofar as the requirements on publication and submission with the UP Law Center – ONAR are concerned.

The Court also found that the rates of hazard pay embodied in Section 7.2 of the DBM-DOH Joint Circular was inconsistent with Section 21 of RA No. 7305 and Section 7.1.5 (a) of its Revised IRR, as can be seen in the following contrasting provisions:

SEC. 21. Hazard Allowance. – Public health worker in hospitals, sanitaria, rural health units, main centers, health infirmaries, barangay health stations, clinics and other health-related establishments located in difficult areas, strife-torn or embattled areas, distresses or isolated stations, prisons camps, mental hospitals, radiation-exposed clinics, laboratories or disease-infested areas or in areas declared under state of calamity or emergency for the duration thereof which expose them to great danger, contagion, radiation, volcanic activity/eruption occupational risks or perils to life as determined by the Secretary of Health or the Head of the unit with the approval of the Secretary of Health, shall be compensated hazard allowance equivalent to at least twenty-five percent (25%) of the monthly basic salary of health workers receiving salary grade 19 and below, and five percent (5%) for health workers with salary grade 20 and above.

It is evident that the rates of hazard pay must be at least 25% of the basic monthly salary of PWHs receiving salary grade 19 and below, and 5% receiving salary grade 20 and above. As such, RA No. 7305 and its implementing rules noticeably prescribe the minimum rates of hazard pay due all PHWs in the government. As such, the rates embodied in Section 7.2 of DBM-DOH Joint Circular must be struck down as invalid for being contrary to the mandate of RA No. 7305 and its Revised IRR. Section 7.2.1 provides different rates of hazard pay dependent on the worker’s degree of exposure, which may result in rates lower than the minimum prescribed.

This decision clarifies the scope and limitations of administrative agencies in implementing laws affecting public health workers’ benefits. While agencies have the authority to issue regulations, they cannot contravene the provisions of the law they are tasked to implement. The Court’s ruling underscores the importance of adhering to the minimum standards set by RA 7305 to ensure the well-being of public health workers.

FAQs

What was the key issue in this case?	The key issue was whether the joint circulars issued by the DBM, DOH, and CSC validly implemented the Magna Carta of Public Health Workers (RA 7305) or if they unlawfully diminished the benefits granted under the law.
What is the Magna Carta of Public Health Workers?	The Magna Carta of Public Health Workers (RA 7305) is a law that aims to promote the social and economic well-being of health workers, improve their working conditions, and encourage qualified individuals to join and remain in government service.
What benefits are provided under the Magna Carta?	The Magna Carta provides public health workers with various allowances and benefits, including hazard allowance, subsistence allowance, longevity pay, laundry allowance, and remote assignment allowance.
What did the DBM-DOH Joint Circular provide regarding hazard pay?	The DBM-DOH Joint Circular tied hazard pay to the actual days of exposure to hazards and established rates based on the degree of risk, but provided rates lower than that mandated by the law.
What did the DBM-CSC Joint Circular provide regarding step increments?	The DBM-CSC Joint Circular stated 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.
Why did the Court invalidate portions of the DBM-DOH Joint Circular?	The Court invalidated provisions of the DBM-DOH Joint Circular that lowered hazard pay rates below the minimum prescribed by RA 7305, finding that administrative regulations cannot contravene the law they implement.
Why did the Court declare the DBM-CSC Joint Circular unenforceable?	The Court declared the DBM-CSC Joint Circular unenforceable because it was not filed with the University of the Philippines Law Center-Office of the National Administrative Register (UP Law Center-ONAR), as required by law.
What is the significance of filing administrative rules with the UP Law Center?	Filing administrative rules with the UP Law Center ensures that the public is informed of the regulations and that they are accessible for review and compliance.
Did the Court find that the DOH Secretary failed to include Magna Carta benefits in the Department’s yearly budget?	No, the Court found that the petitioners’ own evidence showed that the DOH Secretary had allocated amounts for Magna Carta benefits in the years 2012 and 2013.

The Supreme Court’s decision in this case serves as a reminder of the importance of protecting the rights and benefits of public health workers. While budgetary constraints and administrative efficiency are important considerations, they cannot justify the violation of statutory mandates designed to ensure the well-being of those who dedicate their lives to public service.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Gil G. Cawad, et al. vs. Florencio B. Abad, et al., G.R. No. 207145, July 28, 2015