UNDP/ADM/99/76

 

UNDP/ADM/99/76
13 December 1999

To: Resident Representatives of Country Offices
From: Deborah Landey
Director
Office of Human Resources
Bureau of Management
Subject: Delegation to country offices to effect payment of "Hazard Pay" to Internationally-Recruited Staff assigned to designated countries
 

Effective: 1 January 2000

      As described in circular UNDP/ADM/98/68 of 16 October 1998 on the subject of “Aligning our personnel administration services with the needs of UNDP 2001", a series of re-engineering and streamlining measures have been undertaken in the area of administration of staff members entitlements. Annex “A” provides an up-dated summary of the measures announced. I am now pleased to announce in this circular another step in this process: the delegation to country offices to effect payment of “Hazard Pay” to internationally-recruited staff assigned to designated countries.


Background

1.       The hazard pay scheme was established in 1992 as a means to compensate staff who are obliged to work under very hazardous circumstances. Upon the recommendation of the United Nations Security Coordinator, the Chairman of the International Civil Service Commission (ICSC) approves the designation and/or deletion of duty stations and the extension of the period for payment of hazard pay; OHR/BPRM communicates these decisions to the Resident Representatives of the designated duty stations. Hazard pay may be approved after an evacuation has been declared and essential staff remain working at the duty station following the evacuation of dependants and non-essential staff; duty stations may be deleted when the situation returns to “normal” and the evacuation status is lifted.

2.       Effective 1 June 1998, ICSC increased the amount of hazard pay for internationally-recruited staff from $902.00 to $1,000 per month. For locally recruited staff who are required to work, and actually do report to work, the hazard pay is set at 20 percent of the mid-point of the applicable local salary scale. These amounts remain valid, until further notice.

Current procedure

3.      Payment of hazard pay has been successfully decentralized to the Afghanistan country office. Payment to internationally-recruited staff assigned to other duty stations is being effected through the central UN Payroll system on a ‘quarterly basis, on the advice of OHR. Payment to eligible locally-recruited staff has been delegated to country offices; circular UNDP/ADM/94/77 of 7 November 1994 sets out the procedure.

New procedure for payment of hazard nay to international staff assigned to designated duty stations

4.      To expedite payments and facilitate the administration of hazard pay during movements of staff (partial periods in cases of reassignment, separation, extended absences from the duty station, etc.), effective 1 January 2000, Resident Representatives are delegated the authority to effect locally payment of hazard pay to internationally recruited staff on a monthly basis, at the end of the month to which the payment applies. Payment may be effected either in US Dollars or in local currency. The delegation is given in respect of staff holding a UNDP letter of appointment. (UNDP, UNDCP, UNCDF, UNIFEM, UNFPA, UNFSTD, UNRFNRE UNSO and UNV); it does not apply to staff from other UN Agencies or UNOPS. It should be noted that not all other Agencies have agreed to the procedures described in this circular. Special instructions should be sought from other Agencies for staff being administered by UNDP on their behalf.

Payments effected for periods overlapping the effective date of this delegation.

5.      There may be cases when the effective date for this delegation of authority to effect locally monthly payments of hazard pay overlap with the quarterly payment effected previously through the central UN Payroll system. Monthly local payments should commence the month following that for which UN Payroll has already effected the payment. To ensure payment is not duplicated, country offices should exercise extreme care and verify that payment in advance has not been made by UN Payroll.

Hazard pay for full calendar months

6.      Payment is to be effected for full calendar months, from the staff member’s date of taking up his/her duties to the close of business of the day of departure on separation or reassignment, including during absences on home leave, annual, maternity or sick leave (except in cases of sick leave or maternity leave for a month or more spent outside of the duty station) or travel on short official missions (less than one month) occurring during the period of assignment to the hazardous duty stations.

Hazard nay to be prorated

7.      The monthly amount of $1000 will be prorated at US$ 33.33 per day ($1,000/30 days) when the staff member is not at the duty station for a full month, as follows:

(a)    On departure for or arrival from extended missions. (i.e. a staff member departing on the 10th of the month for an extended mission will be paid from l-9 of the month; a staff member arriving on the 25’h from an extended mission will be paid from 25-30 of the month.);

(b)   On arrival to take up duties or departure on reassignment or separation if it does not occur on the first or last day of the month, respectively;

(c)   On departure or arrival from extended sick leave or maternity leave (of one full month or longer) spent out of the duty station.

Hazard nay not payable

8.      Hazard pay is not payable in the following situations:

(a)   During home leave or annual leave which immediately precedes the staff member’s taking up his/her duties initially at the duty station or which immediately follows the completion of an assignment at a designated hazardous location;

(b)   During extended missions (of one full month or longer) to another duty station(s) away from the hazardous location;

(c)  While on security evacuation status.

(d)  While on extended sick leave or maternity leave (of one full month or longer), spent out of the duty station.

Payment of hazard nay to U.S. nationals

9.      Payments of hazard pay to U.S. nationals in accordance with paragraphs 6 and 7, must be reported in the “Taxable Earnings Information Data Sheet” which country offices are requested to complete every year (by November/December) for submission to the United Nations Tax Unit.

Staff on security evacuation status

10.    Staff members on evacuation status from a duty station designated for hazard pay, and who have to travel back temporarily to their duty station will be considered “Staff on Mission” and the arrangements detailed in paras. 11 and 12 will apply until such time as the evacuation status is lifted.

Staff on mission

11.     Payment is to be effected as a DSA supplement and should thus be claimed in the relevant F. 10 “Voucher for Reimbursement of Expenses”. The supplement amount of $33.33 per day spent at the hazardous duty station (or $1,000 per full month) should be settled in line with the existing decentralization for settlement of travel claims.

12.    The Headquarters or country of&e where travel is initiated should include this DSA supplement in the travel authorization issued. The MOD and/or account to charge will be the same as that being charged in respect of all other expenses related to the same travel.

Consultants on mission

13.    The arrangement for hazard pay is not applicable to consultants on the assumption that the fee for their services can and should be set to reflect the special conditions, which prevail in the location.

Pavement to national staff

14.    Payment to national staff who have been requested to, and actually do report to work, should continue to be effected as established in Circular UNDP/ADM/94/77 of 7 November 1994, on the basis of the mid-point of the local salary scale, GS or NO, as applicable. It is not considered a bonus applicable to all staff - nor should it be considered in the calculation of MIP contributions or overtime.

Designated duty stations for payment of Hazard Pay

15.    Please refer to Annex B for the list of designated duty stations. Country offices should revise this list, on receipt of information from OHR (upon the recommendation of the United Nations Security Coordinator and as approved by the chairman of the ICSC), when changes occur in the designation of new duty stations and/or deletion of duty stations and in the monthly and daily amount of the hazard pay, which will be communicated as indicated in paragraphs 1 and 2 of this circular.

Account to charge

16.    Please refer to Annex C for the accounts and IOV to charge the hazard pay.

Focal point for further information

17.   Any questions regarding the application of this delegation are to be addressed in the first instance to the administrative unit of the country office. Additional guidance in the administration of this entitlement should be sought from the relevant Personnel Specialist of the Office of Human Resources of UNDP. (Organigram is attached as Annex III).

Accountability

18.    Resident Representatives are accountable for the proper administration of this entitlement. Circular UNDP/ADM/93/50 of 16 August 1993, on the subject of accountability, refers.

Click here to view the Annexes