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Can COVID-19 funding be used for hazard pay or a “pandemic premium”?

DEPENDS, COVID-19 funds may be used for hazard and premium pay if you have policies and procedures in place that cover this type of pay. Personnel who will be paid with COVID-19 funding must receive salary and benefits consistent with your s policies of paying salaries under unexpected or extraordinary circumstances from all funding sources, federal and non-federal.

If you do not have such policies in place for paying salaries under unexpected or emergency circumstances, you should immediately develop and officially adopt these new policies. This is allowed through the Office of Management and Budget (OMB) flexibilities listed in memoranda M-20-11 (PDF - 1.3 MB) and M-20-17 (PDF - 5.4 MB). You must document that you are following your organizational policy for charging salaries during unexpected and extraordinary circumstances. You should also document that you are following guidance as adopted and permitted by the OMB memoranda.


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