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Payroll Services Letter 05-29.1: Environmental Differential Pay


Payroll Services Letter 05-29.1: Environmental Differential Pay

Number: PS05-29.1

Date: April 17, 2005 (Revised May, 2009)

Subject: Environmental Differential Pay

Category: Time and Attendance (T&A)

Reference: PS 05-29, Subject: Environmental Differential Pay, dated April 17, 2005. PS 05-29.1 supersedes PS 05-29. Please replace that letter with this one.


The conversion of the HHS payroll system to the Defense Finance and Accounting Service (DFAS) will change how Environmental Differential Pay is handled by HHS. This letter explains those changes.

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Environmental Differential Pay is a differential pay authorized for Federal Wage System (FWS) employees who are exposed to specific hazards, physical hardships, or working conditions of an unusually severe nature. Any employee exposed to a situation for which Environmental Differential Pay is authorized is entitled to the appropriate differential without regard to the type of appointment or tour.

New Procedure

DFAS enters Environmental Differential Pay through the Time and Attendance (T&A) and Pay Adjustment programs. Due to the small number of HHS employees receiving Environmental Differential Pay, the HHS Payroll Office had processed Environmental Differential Pay manually. From now on, HHS Timekeepers must enter Environmental Differential Pay data through T&A.

Timekeepers will maintain the Environmental Differential hours, rates and certification. Before close of business on Friday, before the end of the pay period, the Timekeeper will forward the hour(s) and rate(s) to the Payroll Liaison.

The Environmental Differential must be sent electronically through the Peregrine system. Use the following Peregrine category/subcategory combination –Category: Pay Subcategory: Environmental Differential. The first line of the description must include the words “Environmental Differential.”

Input the following information in the appropriate fields:

  • Employee name
  • SSN
  • Effective date or Pay Period Ending Date
  • Environmental/Hazard Code
  • Ungraded (UNGR) or Graded (GR)
  • Number of hour(s)

The Peregrine ticket must be received by the Payroll Services Division (PSD) before noon on Monday after the end of the pay period.

For further assistance or for questions regarding the information in this letter, please contact your Payroll Customer Service Team.

Reference: The HHS Timekeeper Manual provides information about Exposure Categories and Percentages. An electronic version of this manual is located on the HHS web site at: