The 95-year-old received the Commonwealth Point of Light Award in recognition of his gallant efforts.
The award recognizes outstanding volunteers whose services are making a difference throughout the Commonwealth.
Private Hammond contributed to the fight against the pandemic by walking 19 miles to raise money for the purchase of PPEs for frontline workers of Commonwealth countries of Africa.
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The war veteran had aimed to raise $600,000 (£500,000) to buy protective gear for health workers and vulnerable veterans, but has so far managed to raise $35,000.
He said he was "overwhelmed and filled with joy" after being honoured by the Queen of the United Kingdom.
A statement from the British High Commissioner, Iain Walker, said Private Hammond is a deserved recipient of the Point of Light Award.
“Her Majesty The Queen presents Points of Light awards to outstanding volunteers across the Commonwealth who change the lives of their community: Private Hammond exemplifies these qualities,” a section of the statement said.
“I enjoyed being part of Joseph’s walk, joining him to raise funds for veterans and hardworking, frontline health workers coping with the everyday impacts of COVID-19.”
This comes after The Queen's grandson, Prince Harry, earlier wrote a letter to Private Hammond applauding the efforts of the veteran.