Law on Night Shift Differential in the Philippines

WHAT IS NIGHT SHIFT DIFFERENTIAL

Article 86 of our labor provides that every employee shall be paid a night shift differentialof not
less than ten percent (10%) of his regular wage for each hour of work performed between ten
oclock in the evening and six oclock in the morning.
It is an additional compensation of not less than 10% of an employee's regular wage for every hour
of work done between 10:00 PM and 6:00 AM, whether or not such period is part of the worker's
regular shift.
"not less than 10%" is only the minimum standard prescribed by our labor code, meaning it could be
higher than 10% but should not be lower. If it is lower than 10%, you can always demand an
increase as a matter of right to the employer. If your demand is not honored, then you can file a
complaint against your employer for failure to comply with the minimum standards provided for by
our labor code.

WHO ARE ENTITLED TO NIGHT SHIFT DIFFERENTIAL

All employees are entitled to Night Shift Differential as a general rule.

WHO ARE NOT ENTITLED TO NIGHT SHIFT

DIFFERENTIAL
1. Employees of the Govt and any of its political subdivisions, including Government owned and
controlled corporation (GOCC)
2. Retail and service establishments regularly employing not more than 5 workers.
3. Includes task and contract basis
4. Domestic helpers and persons in the personal service of another.
5. Field personnel and Employees whose time and performance is unsupervised by the employer
6. Managerial Employees

MAY AN EMPLOYEE WAIVE HIS RIGHT TO NIGHT

SHIFT DIFFERENTIAL
The employee cannot waived such right not unless there is higher and bigger benefits being offered.

SAMPLE COMPUTATIONS OF NIGHT SHIFT

DIFFERENTIAL

1. Without Overtime:
[(10% x regular wage per hour) x no. of hours of worked performed between 10PM to 6PM]
Example:
Daily Wage: P800
Work Schedule: 6PM - 2AM
Solution:
1. Get the hourly wage rate first
Daily wage divided by no. of hours worked
e.g. P800 / 8 hours = P100
2. Compute wage between 6PM - 2AM
e.g. 8 hours x P100 = P800
3. Compute Night Shift Differential
[(10% x regular wage per hour) x no. of hours of worked performed between 10PM to 6PM]
e.g. (10% x P100) x 4 hours = P40
4. Your total wage earned or take home pay will be:
Daily Wage + Night Shift Differential
e.g. P800 + P40 = P840
2. With Overtime
[(10% of overtime wage per hour) x no. of hours worked performed between 10PM - 6AM]
Example:
Daily Wage: P800
Work Schedule: 8AM - 5PM
Overtime: 5PM - 12MN
Solution:
1. Get the hourly wage rate.
Daily Wage divided by no. of hours worked
e.g. P800/ 8 hours = P100
2. Compute wage between 8AM - 5PM
e.g. 8 hours x P100 = P800
3. Compute overtime pay between 5PM - 12MN
[(25% x Wage per hour) = wage per hour] x no, of overtime hours]
e.g. (25% x P100) + P100 = P125
P125 x 7 hours = P875
4. Compute Night Shift Differential
[(10% of overtime wage per hour) x no. of hours worked performed between 10PM - 6AM]
e.g. (10% x P125) x 2 hours = P25
5. Your total wage earned or take home pay will be:
8AM - 5PM (8 hours) x P100 = 800
5PM - 12MN (7hours) x P125 = 875

Night Shift Differential Pay (2 hours) = 25

Total wage earned = 1700