Did you know there is a particular type of pay called night differential pay? This type of pay is given to employees working the night shift. This article will show you how to compute night differential pay on a rest day night shift and a special holiday night shift.
What is Night Differential Pay?
It is a type of wage payment given to employees working shifts that fall between 10 pm and 6 am. This wage payment aims to compensate workers for the inconvenience of working at times that are not typical for most people.
Who Are Not Entitled?
Not all employees are eligible to receive night differential pay. In general, only those who regularly work during the night shift and have a written agreement with their employer are entitled to this type of compensation. Additionally, workers who fall under the piece-rate or commission basis may not be eligible if they are paid based on their output or performance rather than on an hourly basis.
Related: How to Claim Your Separation Pay
Employees who work during the night are entitled to night shift differential pay, with the following exceptions:
- Government employees and employees of GOCCs (government-owned and controlled corporations)
- Employees of retail or service companies regularly employ no more than five persons
- Domestic helpers and persons who are in another’s personal service
- Managerial employees
- Field employees or those unsupervised by the employer.
How To Calculate Night Differential Pay?
Every private employee is allowed to have a Night Differential of Night shift pay, at least 10% extra of his regular wage, for each hour worked between 10 pm and 6 am.
However, any public or government employee is entitled to at least 20% extra of his regular wage for each hour worked between 6 PM and 6 AM.
To compute night differential pay, you will need to multiply your hourly wage by either 10% or 20%, depending on whether you work in the private or public sector.
For example, if you earn 100 per hour and work a night shift from midnight to 8 am, it would be computed as:
100 x 0.1 = 10 pesos (for private employees)
100 x 0.2 = 20 pesos (for government employees)
You may be entitled to additional night differential pay if you work a special holiday night shift between 10 pm and 6 am. This depends on whether the special holiday is a regular or non-working holiday.
In general, if a special holiday falls on a weekday between 10 pm and 6 am, employees are eligible for both regular night shift pay and an additional 25% night differential pay.
However, if the special holiday falls on a Saturday or Sunday between 10 pm and 6 am, then employees are only entitled to regular night shift pay.
Add your standard hourly wage and applicable night differential pay to calculate your total night shift compensation.
For Example: 100 pesos per hour + 25% (for special holiday nights) = 125 pesos total compensation per hour.
Conclusion
Whether you are working a rest day night shift or a special holiday night shift, it is essential to ensure you receive the correct amount of night differential pay for your work. By understanding how this type of compensation works and what types of workers are eligible, you can be better equipped to take advantage of all the benefits available to you.
Recommended: 13th Month Pay Calculator Philippines
[email-subscribers-form id=”2″]
Leave a Reply