Computation of night shift differential pay

The night shift differential pay is at 20% for those in the Government Service, while 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

b. Government service

2. COLA, excluded

Cost of living allowance is not included in the computation. (2022 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits)

3. Favorable stipulation in favor of the employee

a. Private Sector

In the private sector, the above discussions/computations may be superseded by any stipulation favorable to the employee via an employment contract, company policies, collective bargaining agreement, or analogous thereto.

For instance, the employer and the employee may stipulate in an employment contract that rate for night shift differential pay will be 20%, instead of the Labor Code’s 10%. If this is the case, then rate of the night shift differential pay will follow the 20%.

Similarly, the same rule will apply if such a stipulation is found in the company policies, collective bargaining agreement (CBA), or any other employment agreement.

Related

⦁ Night shift differential pay

⦁ FAQ: Night shift differential

⦁ Cases on: Night shift differential

⦁ Is equal protection violated for night shift pay between public and private employees?

References

⦁ Presidential Decree No. 442, a.k.a. Labor Code of the Philippines

⦁ Book IIII, Omnibus Rules Implementing the Labor Code

⦁ Republic Act No. 11701

⦁ 2022 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits

⦁ Cited Labor Law Jurisprudence (a.k.a. Supreme Court Decisions)