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NIGHT SHIFT DIFFERENTIAL

(Article 86)

A. Definition

Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m.

B. Coverage

This benefit applies to all employees except:

  1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws;
  2. Those of retail and service establishments regularly employing not more than five (5) workers;
  3. Kasambahay and persons in the personal service of another;
  4. Managerial employees, if they meet all of the following conditions:
    1. Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof;
    2. They customarily and regularly direct the work of two or more employees therein; and
    3. They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight.
  5. Officers or members of a managerial staff , if they perform the following duties and responsibilities:
    1. Primarily perform work directly related to management policies of their employer;
    2. Customarily and regularly exercise discretion and independent judgment;
    3. (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b)execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special assignments and tasks; and
    4. Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 5.1, 5.2, and 5.3 above;
  6. Field personnel and those whose time and performance are unsupervised by the employer.

C. Computation of Night Shift Differential

The COLA shall not be included in the computation of night shift pay. The table below may be used to guide computations:

Work on
Pay equals
Ordinary day
100% or 1
Sunday or rest day
130% or 1.3
Special day
130% or 1.3
Special day falling on rest day
150% or 1.5
Regular Holiday
200% or 2
Regular Holiday falling on rest day
260% or 2.6
Double holiday
300% or 3
Double holiday falling on rest day
390% or 3.9
Ordinary day, night shift
1 x 1.1 = 1.1 or 110%
Rest day, night shift
1.3 x 1.1 = 1.43 or 143%
Special day, night shift
1.3 x 1.1 = 1.43 or 143%
Special day, rest day, night shift
1.5 x 1.1 = 1.65 or 165%
Regular Holiday, night shift
2 x 1.1 = 2.2 or 220%
Regular Holiday, rest day, night shift
2.6 x 1.1 = 2.86 or 286%
Double holiday, night shift
3 x 1.1 = 3.3 or 330%
Double holiday, rest day, night shift
3.9 x 1.1 = 4.29 or 429%
Ordinary day, overtime (OT)
1 x 1.25 = 1.25 or 125%
Rest day, overtime
1.3 x 1.3 = 1.69 or 169%
Special day, overtime
1.3 x 1.3 = 1.69 or 169%
Special day, rest day, overtime
1.5 x 1.3 = 1.95 or 195%
Regular Holiday, overtime
 2 x 1.3 = 2.6 or 260%
Regular Holiday, rest day, OT
2.6 x 1.3 = 3.38 or 338%
Double holiday, OT 
3 x 1.3 = 3.9 or 390%
Double holiday, rest day, OT
3.9 x 1.3 = 5.07 or 507%
Ordinary day, night shift, overtime
1 x 1.1 x 1.25 = 1.375 or 137.5%
Rest day, night shift, overtime
1.3 x 1.1 x 1.3 = 1.859 or 185.9%
Special day, night shift, overtime
1.3 x 1.1 x 1.3 = 1.859 or 185.9%
Special day, rest day, night shift, OT
1.5 x 1.1 x 1.3 = 2.145 or 214.5%
Regular Holiday, night shift, OT
2 x 1.1 x 1.3 = 2.86 or 286%
Reg. Holiday, rest day, night shift, OT
2.6 x 1.1 x 1.3 = 3.718 or 371.8%
Double holiday, night shift, OT
3 x 1.1 x 1.3 = 4.29 or 429%
Double holiday, rest day, night shift, OT
3.9 x 1.1 x 1.3 = 5.577 or 557.7%

The minimum night shift pay rates vary according to the day the night shift work is performed.

Sector/Industry
Rate
Amount
Non-agriculture
 P481.00
P481/8 x *110% = P60.13 x 110% x number of hours work
Retail/Service Establishment employing 15 workers or less
P444.00
P444/8 x *110% = P55.50 x 110% x number of hours work

* This value may be substituted based on the above rates depending on the day the night shift work is performed.

Source: 2016 revised Handbook on Workers’ Statutory Monetary Benefits prepared by the Department of Labor and Employment, Bureau of Working Conditions