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
| 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 |
b. Government service
| 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 Government service, it is 20% of the hourly rate or a total of 120%. |
| ⦁ Formula: |
| hourly rate x 120% = night shift hourly rate |
| ⦁ Sample computation: |
| Php100.000/hour x 120% = Php120.00/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: |
| Php120.00/hour x 2 hours = Php240.00 |
| 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: |
| Php240.00 + Php600.00 = Php840.00 |
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
⦁ 2022 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits
⦁ Cited Labor Law Jurisprudence (a.k.a. Supreme Court Decisions)
