What is Night Shift Differential Pay

Night shift differential pay is an additional amount that an employer must pay an employee who works between 10 p.m. and 6 a.m.

The Labor Code provides that every employee is entitled to a night shift differential or night shift pay of not less than ten percent (10%) of his regular wage for each hour of work performed between 10 p.m. and 6 a.m.  If overtime work or work in excess of eight (8) hours falls within the night shift period, premiums for overtime work should first be integrated into the regular hourly rate of the employee before computing night shift pay. 

Who are not covered by the night differential provisionsThe provisions on Night Shift Differential apply to

all employees except:

government employeesemployees of retail and service establishments

regularly employing not more than 5 workersdomestic helpers and persons in the personal

service of anothermanagerial employeesfield personnel and those whose time and

performance are unsupervised by the employer

How to Calculate Differential PayInstructions Note the hourly pay earned by an employee for working a regular

shift. Find out the percentage of regular pay that is earned for working an

off shift. For example, the worker may earn 10% of her regular, hourly wage in addition to that wage.

Multiply the percentage by the hourly wage to figure out differential pay. For example, if a worker earns P20 an hour, and the differential for the night shift is 10%: 20 x 0.10 = 2

Therefore, the differential pay would be P2 per hour. Add the differential pay to the hourly wage to find out the total

earned each hour during the off shift. For example, a person earning P20 an hour with differential pay of P2 per hour would make a total of P22 per hour during this shift.

What is Meal Period

According to the Implementing Rules of the Labor Code of the Philippines:

Section 7. Meal and Rest Periods. — Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off for regular meals, except in the following cases when a meal period of not less than twenty (20) minutes may be given by the employer provided that such shorter meal period is credited as compensable hours worked of the employee:

(a) Where the work is non-manual work in nature or does not involve strenuous physical exertion;

(b) Where the establishment regularly operates not less than sixteen (16) hours a day;

(c) In case of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer; and

(d) Where the work is necessary to prevent serious loss of perishable goods.

Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered as compensable working time.

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