If you work the night shift β or even just stay late past 10 PM β Philippine law entitles you to extra pay on top of your regular wage. This is called night differential pay, and it's a right many employees don't fully know about.
What Is Night Differential Pay?
Night differential pay is an additional compensation of at least 10% of the employee's regular hourly wage for each hour of work performed between 10:00 PM and 6:00 AM. This is mandated under Article 86 of the Labor Code of the Philippines.
Night Differential Pay Rates
| Type of Day | Night Differential Premium |
|---|---|
| Ordinary Working Day | +10% of regular hourly rate |
| Rest Day / Special Non-Working Day | +10% of the applicable rest day rate |
| Regular Holiday | +10% of the applicable holiday rate |
| Overtime within 10 PMβ6 AM | Night differential stacks on top of overtime premium |
When night differential overlaps with overtime, both premiums stack. The computation is based on the overtime hourly rate (which already includes the 25%β30% premium), plus 10% night differential on top.
How to Compute Night Differential Pay
- Compute your hourly rate: Monthly Salary Γ· 22 working days Γ· 8 hours
- Night differential rate = Hourly Rate Γ 10%
- Night Differential Pay = Night Differential Rate Γ Hours worked between 10 PM β 6 AM
Who Is Exempt from Night Differential Pay?
- Managerial employees with genuine supervisory or executive authority
- Members of the managerial staff
- Field personnel whose hours cannot be monitored
- Domestic workers (kasambahay) β governed by RA 10361, not the Labor Code
- Employees covered by valid CBAs that provide more favorable terms
Night Differential for Government Employees
Government employees are covered by Civil Service rules, not the Labor Code. Night differential for government workers is governed by CSC and DBM regulations, which provide different rates and coverage. If you are a government employee, consult your HR department or the applicable CSC circulars.
Night Differential in Your Final Pay
- Review your timesheets and identify all unpaid night differential hours
- Compute the correct amount including applicable stacking premiums
- Include it in your final paycheck, released within 30 days of separation
Quick Summary
- Work between 10 PM and 6 AM entitles you to at least 10% additional pay per hour.
- Night differential stacks on top of overtime and holiday premiums.
- Managerial employees and field personnel are generally not covered.
- Unpaid night differential must be included in your final pay upon separation.
Use our Final Pay Calculator to estimate your total entitlements β or learn more about Overtime Pay, Holiday Pay and Service Incentive Leave.