Night Differential and Overtime Under the Labor Code

Working past eight hours, or into the night, is meant to pay more than a plain hour. The Labor Code sets the minimum premiums for both, and knowing them lets you check your payslip against the floor the law guarantees.

Night differential

Between 10 PM and 6 AM, every hour is paid a night shift differential of at least 10 percent on top of your regular hourly rate. It applies to those hours on their own, separate from overtime, so a graveyard shift worked as normal hours still earns it. Employers can pay more than 10 percent, and many call centers do, but 10 percent is the legal minimum.

Overtime on an ordinary day

Work beyond eight hours in a day is overtime, paid at your hourly rate plus at least 25 percent. So an overtime hour on a regular working day is worth 1.25 times a normal hour.

Overtime on a rest day or holiday

When the overtime falls on a rest day or a holiday, the premium is higher: at least 30 percent on top of the rate that already applies to those hours. Because a rest day or holiday hour is already paid above the plain rate, the 30 percent stacks on that higher base, not on your ordinary rate.

When they combine

The premiums are separate and can apply at once. A shift that runs past eight hours and into the 10 PM to 6 AM window earns both the overtime premium and the night differential on the affected hours. This is why a long night shift can pay noticeably more than the raw hours suggest, and why payslips for these shifts are worth reading line by line.

To estimate the extra pay, use the night differential calculator and the overtime pay calculator.