Night shift differential pay is an additional amount that an employer must pay an employee who works between 10 p.m. and 6 a.m.
The Labor Code provides that every employee is entitled to a night shift differential or night shift pay of not less than ten percent (10%) of his regular wage for each hour of work performed between 10 p.m. and 6 a.m. If overtime work or work in excess of eight (8) hours falls within the night shift period, premiums for overtime work should first be integrated into the regular hourly rate of the employee before computing night shift pay.
Who are not covered by the night differential provisions
The provisions on night shift differential apply to all employees except:
- government employees
- employees of retail and service establishments regularly employing not more than 5 workers
- domestic helpers and persons in the personal service of another
- managerial employees
- field personnel and those whose time and performance are unsupervised by the employer
Learn how to compute night shift pay or night shift differential from Compensation and Benefits Guide by Atty. Elvin Villanueva.