How the differential is built
Four things decide your night differential. Here is each one, and how it adds up.
Your monthly salary divided by the working days in the month, then by the hours in a day. The differential is built on this.
salary ÷ hoursOnly hours worked between 10 PM and 6 AM count. A full night shift is 8 hours inside the window; a shift ending at midnight has 2.
10 PM to 6 AMAt least 10 percent of your hourly rate is added for each night hour. Some companies and CBAs pay more than the minimum.
10% or moreThe premium per hour times all your night hours. This is the extra you earn, on top of your usual pay, before tax.
premium × hoursQuestions people ask
answered in plain wordsNight shift differential, or NSD, is extra pay for working late hours. Under Article 86 of the Labor Code, every covered employee is entitled to a premium of at least 10 percent of their regular hourly rate for each hour worked between 10 PM and 6 AM. It applies whether or not the work is overtime.