For work performed from 10:00 p.m. to 6:00 a.m. the following day, the employee is entitled to a night shift differential pay of not less than 10% of his regular wage for each hour of work rendered.[1]

The rule on night shift differential applies to all employees, except:

  • Government employees, including GOCCs; [2]
  • Those of retail and service establishments regularly employing not more than five workers;[3]
  • Domestic helpers and persons in the personal service of another;[4]
  • Managerial employees;[5]
  • Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis, or those who are paid on a fixed amount for performing work irrespective of the time consumed in the performance thereof.[6]

Only for the rule on night shift differential, those who are not exempted above are referred to as “covered employees”.

The minimum night shift pay rates vary depending on the day the work is performed.

Table 1[7]
Night Shift Pay

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 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, overtime 2.6 x 1.3 = 3.38 or 338%
Double holiday, overtime 3 x 1.3 = 3.9 or 390%
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, overtime 1.5 x 1.1 x 1.3 = 214.5%
Regular holiday, night shift, overtime 2 x 1.1 x 1.3 = 2.86% or 286%
Regular holiday, rest day, night shift, overtime 2.6 x 1.1 x 1.3 = 3.718 x 371.8%
Double holiday, night shift, overtime 3 x 1.1 x 1.3 = 4.29 or 429%
Double holiday, rest day, night shift, overtime 3.9 x 1.1 x 1.3 = 5.577 or 557.7%

Table 2[8]
Sample Computation of Night Shift Pay

Sector/Industry Rate* Night Shift Pay
Non-agricultural P466.00 P466.00 x 200%** = P932.00
Retail/Service (>employees) P429.00 P429.00 x 200% = P852.00

*Rate: Minimum Wage (subject to change)
**Percentage may be substituted based on the earlier table.

For purposes of computing night shift pay, COLA is not included.[9]

*Comment or feedback: info@jdpconsulting.ph

References

[1] LABOR CODE. Article 86. Regular wage includes the cash wage only, without deduction on account of facilities provided by the employer (Article 90, Labor Code).

[2] IMPLEMENTING RULES OF BOOK III OF THE LABOR CODE. Section 1, Rule II.

[3] Ibid.

[4] Ibid.

[5] Managerial employees as defined in Book III of the Labor Code.

[6] Id at 197.

[7] Id at 158.

[8] Ibid.

[9] Id at 121.