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How to calculate Night-Shift Differential Pay in the Philippines?

Updated: Jan 31

Employers in the Philippines are legally required to provide employees with night-shift differential pay or night shift pay, or graveyard shift pay of 10% for any hours worked between 10:00 PM and 6:00 AM. With this guide, you'll gain a comprehensive understanding of what qualifies as night-shift differential pay and how to accurately calculate it.


Understanding Night-Shift Differential Pay in the Philippines.


It’s important to understand what qualifies for night-shift differential pay in the Philippines. Generally, any hours worked by covered employee from ten o’clock in the evening to six o’clock the following day will qualify for night-shift differential pay. Night-shift differential pay is defined as a payment of no less than 10% of an employee’s basic salary per hour during this time period. (P. D. 442 Labor Code of the Philippines, Book III, Art. 86)


However, it is possible that the time period for night -shift or graveyard shift be different from what is prescribed by the law. If stipulated in the employment contract, company policy or other agreement, a night-shift differential can be scheduled from 9PM to 5AM the following day. More so, a higher premium than 10% can be paid to the covered employee.



Calculating How Much a Person Should Receive as Night-Shift Differential Rate.


The night-shift differential rate is 10% of a person’s regular pay for every hour they work during the designated hours.


To illustrate, please refer to below examples of a Regular hourly rate of P120 with Night-shift differential pay:


Ordinary day Night Differential Pay

Night Differential Pay per hour = Hourly rate x 110%

= P120 x 110%

= P132


Ordinary day Night Differential Overtime Pay

Night Differential Overtime Pay per hour = Hourly rate x 125% x 110%

= P120 x 125% x 110%

= P165

Rest day Night Differential Pay

Night Differential Pay per Rest day hour = Hourly rate x 130% x 110%

= P120 x 130% x 110%

= P171.60

Special non-working Holiday Night Differential Pay

ND Pay per Special non working Holiday hour = Hourly rate x 130% x 110%

= P120 x 130% x 110%

= P171.60

Special non-working Holiday and at the same time Rest day Night Differential Pay

ND Pay per Special non-working Holiday Rest day hour = Hourly rate x 150% x 110%

= P120 x 150% x 110%

= P198

Regular Holiday Night Differential Pay

Night Differential Pay per Regular Holiday hour = Hourly rate x 200% x 110%

= P120 x 200% x 110%

= P264

Regular Holiday and at the same time Rest day Night Differential Pay

ND Pay per Regular Holiday Rest day hour = Hourly rate x 260% x 110%

= P120 x 260% x 110%

= P343.20

Double Holiday Night Differential Pay

Night Differential Pay per Double Holiday hour = Hourly rate x 330% x 110%

= P120 x 330% x 110%

= P435.60

Double Holiday and at the same time Rest day Night Differential Pay

ND Pay per Double Holiday Rest day hour = Hourly rate x 390% x 110%

= P120 x 390% x 110%

= P514.80


The additional amount should be neatly and accurately listed on their pay slip or payroll record especially for Minimum Wage Earner (MWE).


What are the Other Benefits Covered by Night-Shift Differential?


Employers are required to provide safe and comfortable working spaces even during night shifts such as proper lighting and security measures. Finally, it’s important to note that employer cannot force an employee to work overtime without extra pay - the Department of Labor and Employment mandates that any work be done over 8 hours should receive premium or overtime pay.



The Pros and Cons of Working Night Shifts in the Philippines.


Besides the potential for higher wages, there are a number of advantages to working night shifts in the Philippines. Working outside normal hours can give employees more flexibility to manage personal schedules while still earning an income. However, it's important to consider the various challenges associated with night shift work. Long hours can lead to fatigue, which over time can impact general health and wellbeing. Furthermore, strain on family and social life is one of the major drawbacks of night shifts and should be considered before opting into this type of work.


Good news! In AanyaHR, overtime tables are readily available and any changes can be easily updated. Calculation of overtime and required premiums are even at a few clicks. Want to know more about other helpful and awesome features of AanyaHR, please send an email to customerfirst@illimitado.com or visit our website


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