Computation of Night Shift Differential Pay

If covered employees perform work on a night shift designated by law, they are entitled to a night shift differential pay of at least 20% their hourly rate for those in the Government service and 10% for those in the private sector. 1. Computation These are the steps on how to compute for the night shift differential pay. The following are the assumptions: 1) The employee’s daily rate is Php800.00. 2) The employee works for 8 hours, including 2 hours covered by night shift pay. a. Private Sector

STEP 1: Divide the daily rate with eight hours – to get the hourly rate.

Formula:

daily rate ÷ 8 hours = hourly rate

Sample computation:

Php800.00 ÷ 8 hours = Php100.00/hour

STEP 2: Multiple the hourly rate by the applicable rate – to get the night shift hourly rate.

For the private sector, it is 10% of the hourly rate or a total of 110%.

⦁ Formula:

hourly rate x 110% = night shift hourly rate

⦁ Sample computation:

Php100.000/hour x 110% = Php110.00/hour

STEP 3: Multiply the night shift hourly rate by the hours worked – to get the night shift pay.

⦁ Formula:

night shift hourly rate x 2 hours of work = pay with night shift differential

⦁ Sample computation:

Php110.00/hour x 2 hours = Php220.00

STEP 4: Add night shift pay to pay for ordinary hours rendered – to get to the day’s wage.

⦁ Formula:

pay with night shift differential + pay for ordinary hours = day’s wage

⦁ Sample computation:

Php220.00 + Php600.00 = Php820.00

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