Night Shift Differential in the Philippines

Night Shift Differential in the Philippines WHAT IS NIGHT SHIFT DIFFERENTIAL Article 86 of our labor provides that every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning. It is an additional compensation of not less than 10% of an employee's regular wage for every hour of work done between 10:00 PM and 6:00 AM, whether or not such period is part of the worker's regular shift. "not less than 10%" is only the minimum standard prescribed by our labor code, meaning it could be higher than 10% but should not be lower. If it is lower than 10%, you can always demand an increase as a matter of right to the employer. If your demand is not honored, then you can file a complaint against your employer for failure to comply with the minimum standards provided for by our labor code.

WHO ARE ENTITLED TO NIGHT SHIFT DIFFERENTIAL All employees are entitled to Night Shift Differential as a general rule.

WHO ARE NOT ENTITLED TO NIGHT SHIFT DIFFERENTIAL 1. Employees of the Gov’t and any of its political subdivisions, including Government owned and controlled corporation (GOCC) 2. Retail and service establishments regularly employing not more than 5 workers. 3. Includes task and contract basis 4. Domestic helpers and persons in the personal service of another. 5. Field personnel and Employees whose time and performance is

unsupervised by the employer 6. Managerial Employees

MAY AN EMPLOYEE WAIVE HIS RIGHT TO NIGHT SHIFT DIFFERENTIAL The employee cannot waived such right not unless there is higher and bigger benefits being offered.

SAMPLE COMPUTATIONS OF NIGHT SHIFT DIFFERENTIAL 1. Without Overtime: [(10% x regular wage per hour) x no. of hours of worked performed between 10PM to 6PM] Example: Daily Wage: P800 Work Schedule: 6PM - 2AM Solution: 1. Get the hourly wage rate first Daily wage divided by no. of hours worked e.g. P800 / 8 hours = P100 2. Compute wage between 6PM - 2AM e.g. 8 hours x P100 = P800 3. Compute Night Shift Differential [(10% x regular wage per hour) x no. of hours of worked performed between 10PM to 6PM] e.g. (10% x P100) x 4 hours = P40 4. Your total wage earned or take home pay will be: Daily Wage + Night Shift Differential e.g. P800 + P40 = P840 2. With Overtime [(10% of overtime wage per hour) x no. of hours worked performed between 10PM - 6AM] Example:

Daily Wage: P800 Work Schedule: 8AM - 5PM Overtime: 5PM - 12MN Solution: 1. Get the hourly wage rate. Daily Wage divided by no. of hours worked e.g. P800/ 8 hours = P100 2. Compute wage between 8AM - 5PM e.g. 8 hours x P100 = P800 3. Compute overtime pay between 5PM - 12MN [(25% x Wage per hour) = wage per hour] x no, of overtime hours] e.g. (25% x P100) + P100 = P125 P125 x 7 hours = P875 4. Compute Night Shift Differential [(10% of overtime wage per hour) x no. of hours worked performed between 10PM - 6AM] e.g. (10% x P125) x 2 hours = P25 5. Your total wage earned or take home pay will be: 8AM - 5PM (8 hours) x P100 = 800 5PM - 12MN (7hours) x P125 = 875 Night Shift Differential Pay (2 hours) = 25 Total wage earned = 1700

Every employee is entitled to a Night Differential of Night shift pay of not less than 10% of his regular wage for each hour of work performed between 10pm and 6am.

Ordinary day Night Shift

Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Ordinary Day Night Differential = (Hourly rate X 10% % X 8 hours) Php 45.60 = (Php 57.00 X 0.10 % X 8 hours)

Rest day Night Shift Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Rest Day Night Differential = (Hourly rate X 130 % X 10% X 8 hours) Php 59.28 = (Php 57.00 X 1.3 % X0.10% X 8 hours)

Special Holiday Night Shift Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Special Holiday Night Differential = (Hourly rate X 130 % X 10% X 8 hours) Php 59.28 = (Php 57.00 X 1.3 % X0.10% X 8 hours)

Special Holiday and at the same time Rest day Night Shift

Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Special Holiday Rest day Night Differential = (Hourly rate X 150 % X 10% X 8 hours) Php 68.40 = (Php 57.00 X 1.5 % X0.10% X 8 hours)

Regular Holiday Night Shift Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Regular Holiday Night Differential = (Hourly rate X 200 % X 10% X 8 hours) Php 91.20 = (Php 57.00 X 2.0 % X0.10% X 8 hours)

Regular Holiday and at the same time Rest day Night Shift Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Regular Holiday Rest day Night Differential = (Hourly rate X 260 % X 10% X 8 hours) Php 118.56 = (Php 57.00 X 2.6 % X0.10% X 8 hours)

Double Holiday Night Shift

Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Double Holiday Night Differential = (Hourly rate X 330 % X 10% X 8 hours) Php 150.48 = (Php 57.00 X 3.3 % X0.10% X 8 hours)

Double Holiday and at the same time Rest day Night Shift Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am To determine the employee Night Differential pay: Double Holiday Rest day Night Differential = (Hourly rate X 390 % X 10% X 8 hours) Php 177.84 = (Php 57.00 X 3.9 % X0.10% X 8 hours)