What is Night Shift Differential Pay 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. Share this: Facebook8 Twitter Email More Like this: This entry was posted in Labor Law, Law Books and Guides, Salaries and Benefits Rules and tagged compute night shift differential pay, Employment, night shift differential pay, night shift pay, Shift work on :-). Post navigation← When Mother of Child Can be Deprived of CustodyComputation of Termination Pay → 84 thoughts on “What is Night Shift Differential Pay” megadude :-) at :-) how about terms such as “night differential included in salary” or “all inclusive”? are these illegal? or a loophole in the law? Christine Florido Post author :-) at :-) Contract terms per se will not be the sole factor in determining an employer’s compliance with labor laws. If by a contract’s terms it appears to include night shift differential, the breakdown of the employer’s total take home pay should properly reflect the minimum amount of night shift pay due, in

addition to the basic salary of the employee. Check the pay slip– the breakdown of items added and deducted should give you an idea if night shift differential is, indeed, included. This may be further tested by differences in total take home pay of shift workers who render work between 10 p.m. to 6 a.m. and those who do not. I hope that this helps. megadude :-) at :-) thanks for the reply infomagnate. anyway, i’ll give some data so you can help me more on this; my basic salary is 14,000 – and contract terms state that the night diff is included in salary. now, for the pay period 8/16 – 8/31 basic pay – 6,649.75 night diff- 350.25 ——————– basic sal. 7,000.00 then for pay period 9/1 – 9/15 basic pay – 7,000.00 night diff- 0 ——————– basic sal. 7,000.00 for payroll period 9/1 – 9/15, i was on vacation leave and it seems that the more hours i work during night diff hours the bigger night diff i get, but my basic pay becomes smaller – is this what they call “night diff included in salary” ? this one seems stupid because it looks like it would favor me more if i used my vacation leaves or whatever leave i have as i can get some rest and get more of the basic pay is due me. it seems that in this example i really don’t get any night diff pay as they only extract the diff from my basic pay, instead of adding night diff pay to the basic pay. Christine Florido Post author :-) at :-) Megadude: Night shift pay is computed based on the employee’s regular salary and is an additional amount, not merely a proportion of the salary. It would appear from your example that your ‘night shift pay’ is not additional pay because it reduces the amount of your basic pay. I suggest that you seek clarification administratively with your immediate superior to give your employer a chance to make any adjustments before taking legal action. megadude :-) at :-) sadly infomagnate i think some employers are taking advantage of this as in my opinion, the nsd law is a bit “vague” – the “basic pay” aspect is not protected at all (or am i wrong? please correct me if ever). nsd pay can be interpreted as “purely/genuine” additional pay (such as overtime pay) or can be made to look as an additional pay (like in my case – at the expense of my “flexi-basic pay”).

Christine Florido Post author :-) at :-) @Megadude: The Labor Code generally prohibits deductions against the basic salary of the employee except in certain cases with the consent of the employee or when authorized by the Labor Code. Night shift pay is clearly not a deduction but an additional pay to be given to the employee. The “basic pay” IS protected. If employers practise this form of ‘salary deduction’ then it is up to the employees concerned to address their individual situations. I hope I have enlightened you sufficiently on this matter. megadude :-) at :-) so, do i have a case? can i hire your services please? :) Eillora :-) at :-) Hi. I just want to ask if piece rate workers are eligible for night differential provision? Christine Florido Post author :-) at :-) email sent nixram23 :-) at :-) Hi, how should I compute overtime work of an employee and night differential if he is hired under an employment agency? Should I pay the percentage service fee of the agency on OTs and NSDs also? Attorney Post author :-) at :-) Nixram23: The same formula applies for computing overtime pay and night shift differential that is due to the employee. Whether you should also pay an additional fee to the agency every time an employee performs overtime or work at night will depend on the terms of your agreement with the agency. I suggest that you refer to the agency contract for this. I hope this helps. I hope this helps. nixram23 :-) at :-) Thanks. Will do check our contract.

Buub :-) at :-) Hi, tanong ko lang po kapag nag-OT ka ng beyond 10 PM may night shift differential ka pa rin ba, besides the OT pay that is? Thanks. My sked is 1pm to 10pm and i usually do OT at 10pm onwards, hence the question… thanks po uli… Atty. Post author :-) at :-) Buub: Yes, night shift pay applies plus OT pay. :-) Buub :-) at :-) Thanks for the reply sir. Btw, can you provide a link on the exact statement of that fact so i can show it to my boss. I’m just getting OT pay no, night differential. It would be of big help, thanks again in advance… :D Atty. Post author :-) at :-) Buub: If your office has an HR manager, I’m sure they know that it’s in the Labor Code. It might offend your employer if you start quoting exact provisions. Buub :-) at :-) Actually mam we don’t, we’re a small company of less than a hundred. We’ve got a clerk basically who knows squat about labor laws. We have a copy of the current labor code but I don’t know specifically where to look. And he’s the type of manager that will only believe you if he see’s it in writing. Thanks again for the prompt reply… Webmaster Post author :-) at :-) Buub: Copy of DOLE handbook sent via email. Jeff :-) at :-) Request din po ako > Copy of DOLE handbook sent via email. Many thanks!!!!! Webmaster Post author :-) at :-) Jeff: Ask and you shall receive. :-) Copy already sent.

Jesse :-) at :-) Hi tanong ko lng po kung yung lunch break ay hindi ksama s hours ng night diff. my bagong policy yung company namin at sabi nila production hours lang yung binibilang sa night diff kya kung my lunch break ka from 10pm to 6am, ibig sabihin 7 hours lang yung night diff mo. in short walang employee na pwedeng mkabuo ng 8 hours na night diff. tama po ba ito? Atty. Post author :-) at :-) Jesse: It is my opinion that the one-hour lunch break is not included in the computation of night shift differential because this additional pay is based on the hours worked. By law, the one-hour lunch period is not considered as “hours worked”. MAYUMI :-) at :-) sabi ng bos q sa sss daw namin napupunta ang nyt diff. pay namin pero may bawas pa din and salary namin na pra sa sss at iba pang dapat ibawas.. kaya po wala na daw kaming nyt diff. sapat ba dahilan un na dun talaga napu2nta ang bayad ng nyt diff. pay… 10 p.m – 6 a.m ang working time namin magkano po ba dapat nyt diff. namin sa isang araw … minimum lang po kami. TNX :) Atty. Post author :-) at :-) Mayumi: The only way to know if your night shift pay is being paid by the employer is to ask for a breakdown of your salary in your payslip. This should show the night shift pay computation BEFORE the deduction of SSS contribution. To compute night shift differential: 1. Get the hourly rate by dividing your daily rate by 8. 2. Assume for this example that your hourly rate is P47.75. 3. So for work performed on a REGULAR day (not holiday) from 10 pm to 6 am , you multiply the hourly rate by 1.1 (because nightshift pay is at 10%) like so—> P47.75 x 1.1= P52.52. In this example, P52.52 is your hourly pay with nightshift differential imputed. 4. Multiply the hourly pay with night differential by 8 (if you work for 8 hours) to get a gross daily pay of P420.20 The amounts are hypothetical and for purposes of illustration. I hope this helps. oweng :-) at :-) Hi po Atty. is there a salary bracket para magkaroon ka po ng night diff?

rmr0212 :-) at :-) Hi po Atty. is there a salary bracket para magkaroon ka po ng night diff? Atty. Post author :-) at :-) rmr0212/Oweng: There is no salary qualifications for the night differential pay although managerial employees, members of the managerial staff and field employees are excluded from the coverage of night shift pay. dontaskme :-) at :-) basic salary and night diff in our company is being paid 15 days after the cut off. after several months company issued notification via internal email blast that the night diff that they have paid to all employees were erroneous and they are issuing Authority to deduct to recover “the loss”and if an employee would not sign they said that company would have a 3rd party to collect the amount in full. something doesnt seem right in this scenario… may you shed some light on this? Atty. Post author :-) at :-) Dontaskme: You need to get a breakdown and computation of your net pay to see where the discrepancy supposedly lies. Until then, it’s difficult to say if the deduction is erroneous. If you do feel that the deductions are not proper and these are actually made from your salaries, you may have to direct your complaints and queries to the Department of Labor where you can make the proper claims. LIRA :-) at :-) hi please compute for me :( sched is 9-6pm but we took overnight til 5:30 am. what the computation po for the whole day.. please break down computation.. many thanks! :) Atty. Post author :-) at :-) Lira: This is the general formula for night shift work with overtime performed on a regular day. Step 1: Get your HOURLY RATE (HR) by dividing your daily rate by 8. Step 2: a) Compute Overtime hourly rate for work performed from 6 pm to 10 pm–> HR x 1.25 = OT Hourly Rate b) Multiply OT Hourly Rate by 4 to get Total OT Pay Step 3: a) Compute Night shift hourly rate for work performed from 10 pm to 530 am. –> HR x 1.375 – Night Shift Hourly Rate b) Multiply Night Shift Hourly Rate by 7.5 hours to get Total Night Shift Pay Your pay slip will most likely display OT pay and Night Shift pay separately. Note: I’m not an

accountant so I refrain from performing actual computations here. :-) maelyn :-) at :-) change topic po, baka you can help us, di po kasi namin maintindihan kung pano nila kino compute ung witholding tax namin, para po kasi ang laki lagi ng tax na kinakaltas nila samin, or tina taxan nila ung incentive namin: basic salary: 8000 (july 16-31) reg ot: 3.5 334.39 reg. nd: 37.50 286.50 reg. ndot 1.5 14.33 Incentive 7000.00 ————————————————————— gross earnings 15,635.22 Deduction: BIR witholding tax 2581.31 sss 283.30 philhealth 100.00 Pag ibig 50.00 ———————————————————3,014.61 NET PAY 12,620.61 tama po ba? head of the family with 1 dependent Atty. Post author :-) at :-) Maelyn: While I’m not an accountant, my computation of the withholding tax based on the details you provided seems inconsistent with the taxable income. Before we conclude any error or bad faith here, I suggest that you seek further clarity on the computation of the tax to see if the amount listed as INCENTIVE was included in the computation of taxable income. That seems to be the only logical conclusion for the high tax rate. Jm :-) at :-) May I have a copy of the DOLE handbook too, please, Atty.? Thanks! Atty. Post author :-) at :-) JM: email sent.

Gerry ********** :-) at :-) Hi Atty., Can you pls. verify the computation from my Co. This is my the breakdown from the payslip: Daily Rate: Php758.00 Basic: PhP9,854.00 Hrs/Day: 9.5hrs (8am-6:30pm) no saturdays Just Filed an overtime carried for this period with total of 78.50 hours. The breakdown comes out like this: Regular OT: 70.5hrs paid to PhP8,430.91 Night Diff: 8hrs paid to PhP76.54 – if ND is 8hrs, how come i get only PhP76.54 pesos for the ND? can you find something wrong with this calculation? thanks. Atty. Post author :-) at :-) Gerry: Night shift pay seems to be insufficient. It could be an error in bookkeeping only. I suggest you clarify with your HR or accounting personnel. Work performed during night shift hours and beyond the regular working hours of the employee must be subject to both overtime and night shift rates. I hope this helps. Elizabeth S******** :-) at :-) tanong lang po shift manager po ako sa work ko talaga po bang wala kaming night differential and holiday pays??thanks po Atty. Post author :-) at :-) Elizabeth S: As an exception, managerial employees are not entitled to night shift pay. Please read this previous article to see if your position qualifies under the exception. Elizabeth S******** :-) at :-) pero this past payroll nmin bayad kmi ng night differential and holidays tpos ngayon po bka wala na daw bakit po ganun?pls i need reply po tnx Atty. Post author :-) at :-)

Elizabeth: If your position is that of a manager and you were previously paid night shift and holiday pay, then it is possible that HR or Accounting made a mistake and is now correcting itself by not paying it out. Elizabeth S. :-) at :-) pero di po tlga kmi as manager shift manager or officer in charge lng po kmi nd db po pg manager dpt 2 days off kmi in a week tulad ng hr manager nmin and pg holidays wala din kming pasok peo pumpasok po kmi bkt gnon?? Atty. Post author :-) at :-) Elizabeth: I suggest that you view your job description and organizational chart first. I also recommend seeking clarification on the questions you also raised with your employer who is in the best position to explain these things. If you are convinced that you are entitled to night shift pay, then you may have to raise your questions/complaint directly at the Department of Labor already. I hope this helps. Elizabeth S :-) at :-) and prang ang dming di lam ng hr manager nmin s mga need ng tao nya dpt po db ang hr manager graduate ng pyschology?and how many years dpt ang experience? Atty. Post author :-) at :-) Elizabeth S: There is no standard qualification that all HR managers must possess although a degree in psychology may help. It is the prerogative of the employer to select employees they deem fit for any position unless required by law to possess specific degrees and licenses. sarah :-) at :-) hi! my work is from 7pm-3am pro O.T pu kme lagi till 7a.m, ask ko lng po how to compute my night diff and o.t. many thanks! Atty. Post author :-) at :-) Sarah: It’s a bit complicated to explain here. :-) But here goes. Assuming your daily rate is P404, then your regular hourly rate is P50.50 (404 divided by 8 hrs). Work from 7 p.m. to 10 p.m. : P50.50 x 3 = 151.50 Night shift work from 10:01 p.m to 3 a.m. : P50.50 x 1.1 = 55.55 per hour on regular night shift or a total of 277.75 (55.55 x 5 hrs)

NIght shift and overtime work from 3:01 a.m to 6 a.m. : P50.50 x 1.375 = 69.44 per hour or a total of 208.32 (69.44 x 3 hrs) Overtime work from 6:01 a.m. to 7 a.m. : P50.50 x 1.25 = 63.12 per hour Total pay for this day: 151.50 + 277.75 + 208.32 + 63.12 = 700.69 Note: I’m not an accountant– my undergrad course was Legal Management. But you get the idea (I hope) :-) Buub :-) at :-) Hi mam, could you give me a breakdown/computation for my night diff? My basic salary is P25,000. I work from 8PM to 6AM, I think my company’s computation is not correct, just want to double check it with you. Thank you very much. Atty. Post author :-) at :-) Buub: It would help to provide the regular daily rate. From there, you can compute the hourly night shift rate, which is = regular hourly rate x 1.1. I suggest that you ask for a breakdown of the computation from your employer and check if the formula applied is similar to what I just mentioned. Email back if you have the details. Buub :-) at :-) Hi mam, here are the details, P25,000/month, working from monday night to saturday morning, nighshift (so that’s roughly 21 to 22 days a month) at a daily rate of 1,136. We work from 8PM to 6AM 10 hours a day, so my hourly rate is about 114 (113.6 to be exact). Out of the 10 hours of work there’s a 1 hour break so the total hours for the night diff is only 7 ( night diff is only from 10PM to 6AM, so that’s 8 hours minus 1 hour break). So based on this how much should my night differential be? My company is adding it as an additional pay so I would greatly appreciate it if I could get the total night diff amount for the whole month, say September which is 22 days so i could compare it with the computation my company gives me. Thanks very much and more power! Atty. Post author :-) at :-) Buub: Given your monthly salary is 25K and assuming an hourly rate of 142/hour, you MAY be entitled to an additional amount of 1132.45 as night shift pay. Factors that may affect the final computation include: your actual hourly rate and at what time you go on a meal break. Disclaimer: my comments are based on the bare details provided and may not be used as a basis for filing a complaint against your employer. You should still seek detailed clarification from your HR manager and accounting officer for the basis of their computation and possibly a lawyer if you feel that your right has been violated. Your own counsel can make a complete assessment and provide more appropriate advice after viewing all the evidence you have. I hope this helps.

Jaymerson :-) at :-) Hi! Atty, good day! Can you please kindly help me compute my overtime pay as well as my night differential pay? I’m a little bit confused. Thank you very much! Here’s my details: Monthly pay of Php 18, 100; hourly rate of Php 87.02; regular schedule of 10 am to 7 pm. Here’s the scenario: I render overtime from 7 pm to 11 pm. So, now what should be my overtime pay? And my night differential pay since I also render a 10 pm to 11 pm OT? How will we compute my OT pay and ND pay respectively in this case? God Bless! Atty. Post author :-) at :-) Jaymerson: will try to send you a reply through email before the day ends. Please check later. Atty. Post author :-) at :-) Jaymerson: For overtime work rendered between 7 p.m. and 10 p.m., multiply your hourly rate by 1.25 (equals 108.75 per hour or a total of 326.25 for the 3 hours). Next, multiply your hourly rate by 1.375 to get the night shift overtime pay for work performed between 10 p.m. to 11 p.m. (equals 119.63 per hour). So, in addition to your daily rate, you should also receive an additional total of 445.88, more or less, as overtime night shift pay for that day. I hope this helps. mjay22 :-) at :-) Hello Atty, I would just like to ask how much is my rate if i rendered 4.5 hours prior to the time covered by night differential(10pm-6am)? It is not actually an overtime because i was only on duty that night because of store renovation, my regular duty is between 10am-8pm. My basic rate is 39.38 or 315 a day for 8hrs work. Is it true that my hourly rate for that night is only 3.94 or 10% of my basic rate?it is what was written on my payslip and our HR told me upon confirmation. Hoping for your Soonest Response….thank you! Atty. Post author :-) at :-) Mjay22: Your hourly night differential pay 43.32 or an additional 3.94 hourly. You might want to email me the breakdown as it appears in your payslip. email: atty@christineflorido.com. Atty. Post author :-) at :-) Mjay22: what were your actual hours of work on that day when you worked on a night shift? I got your email but I need to know your actual hours worked on that day. email at : atty@christineflorido.com mjay22 :-) at :-)

I’ll send the copy tomorrow,same time..by the way thank you so much for your reply..god bless you.:-) mjay22 :-) at :-) i already sent you my payslip,Please notice my nd hour and total pay..thank you..:-) mjay22 :-) at :-) hi atty, Didn’t you receive my recent e mail? i already sent my answer about your query…Please advise..thanks. Atty. Post author :-) at :-) Mjay22: I sent a reply at the email address you gave but it bounced, so I assumed that it was invalid. Anyway, the computation appears to be correct. mjay22 :-) at :-) Correct? Could you please explain it atty.. ty. Atty Post author :-) at :-) Mjay22: Night shift pay is 10% of your regular hourly rate. It is added to your base pay at the end of the day, which is what happened in your payslip. sheena :-) at :-) how to compute night differential on Sunday? for example, the daily rate is 404, what is the night differential from 10pm to 11:30pm?…thanks. Atty. Post author :-) at :-) Sheena: Assuming Sunday is your rest day and that 10 p.m. to 1130 p.m. is not overtime work, then your payslip should more or less reflect an additional amount of Php32.75 for work on that day. Darwin de la Cruz :-) at :-) hi attorney, kindly send me through email a copy of the DOLE handbook. Thanks a lot!!! darwin.delacruz23@yahoo.com

Atty. Post author :-) at :-) Hi, Darwin. Could you please send your full name, office name, office address and contact number to my inquiries@hrpractitionersguide.com. They will send you a copy of the DOLE handbook upon receipt of your email. mjay22 :-) at :-) so there’s nothing wrong with my 3.94 hourly rate? because it already added on my base pay? what base pay? can you give me further explanation atty, sorry but i’m still finding it hard to understand..:-) Atty. Post author :-) at :-) mjay22: Since you did not work overtime on the day in question, your daily rate of 315 already paid for the work you performed on that day. Your work from 10 to 1130 p.m. entitles you to an additional 10% as night shift pay. Additional 10% is computed by multiplying your hourly rate of 39.375 by .10, which will give you an additional amount of 3.9375 or 3.94. This is really the best way I can explain it to you. What amount were you expecting and how did you arrive at that amount? Clearly, since you find it hard to believe the computation, you must have your own computation which does not match the amount on your payslip? J :-) at :-) Hello, I just wanted to ask – my current contract states an annual pay of XXXXXX, and a monthly pay of that divided by 12. I work graveyard but don’t get night shift differential. According to the employer, it’s because I have a fixed salary. The contract doesn’t say anything about it being fixed. Should I demand for the night shift diff? TIA. Atty. Post author :-) at :-) J: Examine the contract again and look for provisions whether the annual salary already includes night shift differential. Ordinarily it is not understood that night shift is inclusive. Ask if that contract has been approved by the Department of Labor, particularly as to its compensation terms, and whether it was approved as all-inclusive (night shift and overtime). mjay22 :-) at :-) so from 10pm-11:30 or 2:30am rather it’s a clear “additional” 10% from my basic rate not just 10% per hour rate? or 39.38+10%=43.32 not just 3.94 hourly, sorry to bother you atty but as what i understand on your reply,i arrived at this formula, again please correct me if i’m wrong.. Reg. ND 4.50 17.72 as you can see and indicated in my payslip my 4.50hr under Reg. ND is multiply to 10% of my basic

rate w/c is 3.94 and the total is 17.72pesos.. so 3.94 hourly is justifiable? peace!:-) Atty. Post author :-) at :-) Mjay22: Yes. That is correct. Night shift pay is computed at 10% of the basic HOURLY rate. mjay22 :-) at :-) additional 10% right? so what can you say about my 4.5hr and their total of 17.72..multiply by 3.94 only. i thought it should be 43.32. Webmaster Post author :-) at :-) MJAY22: 3.9375 x 4.5 = 17.71875 or 17.72. I think that this is enough, MJAY22. :-) Post author :-) at :-) MJAY22: I think I have answered the same question several times over. I suggest that you seek the opinion of another consultant if you are not satisfied. This blog’s legal disclaimer applies. Good luck! ced :-) at :-) Hi Attorney, Could you please send me a copy of the labor code. Are managers entitled to 13 month pay? I have been employed for almost two years now as an FnB manager in a cooperative my salary is 22,000 a month the new board and management team wants to cut my salary because they say I have no appointment letter proving my salary. But i have been receiving it ever since and nine months in to their term. They refuse to give me my full 13 month also for the reason that they are still deciding on my salary. Is this lawful? Our restaurant earning is even bigger now. Lastly my employees are complaining about their 13 month pay which is lower than the previous years and there are no payslips being issued. When asked about it they said that the 13 month pay was only computed up to November since December is not yet over. Is this right? Hope you could help us. Thank you!

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