What is the pay differential for night shift?

An employee who performs nightwork is entitled to pay for that work at their rate of basic pay plus a night pay differential amounting to 10 percent of their rate of basic pay (5 CFR 550.121(a)).

How do you calculate night shift differential?

To determine the employee Night Differential pay: Double Holiday Rest day Night Differential = (Hourly rate × 390% × 10% × 8 hours)

Who are entitled for night differential?

If an employee is required to work for overtime after the regular working hours, where its overtime schedule reached the night shift differential period, the employee shall receive the additional (not less than) ten percent (10%) of its overtime hourly rate, for work done between 10PM to 6AM.

What is a typical shift differential?

The shift differential is typically 10% of the staff member’s regular hourly rate, but the amount may vary based on industry standards and according to job family. The amount must be approved by Human Resources.

What hours count as night shift?

The definition of ‘night time’ ‘Night’ is generally the period between 11.00 pm and 6.00 am. You can agree with your employer to change the night time period. If you do, then it must be at least seven hours long and include the time between midnight to 5.00 am.

Who are not entitled to night shift differential?

All employees are entitled to night shift differential except for the following: government employees and employees of GOCCs (government owned and controlled corporations) employees of retail or service companies regularly employing no more than five persons.

Is night differential pay taxable?

Under R.A. 9504 overtime pay, night shift differential pay and hazard pay received by such minimum wage earners are exempt from income tax (Section 2, R.A. 9504).

What are differential wages?

Differential wage payments are payments that represent all or part of the wages that they would have otherwise received from the employer. This differential wage payment credit is equal to 20 percent of up to 20,000 dollars of differential pay made to an employee during the tax year.