Is it mandatory to pay night differential in the Philippines?

Night shift differential pay is an additional pay for work between 10:00 p.m. and 6:00 a.m. the following day. It is a legally mandated benefit.

How much is the night differential pay in the Philippines?

Every employee is entitled to a Night Differential of Night shift pay of not less than 10% of his regular wage for each hour of work performed between 10pm and 6am. To determine the employee Night Differential pay: Ordinary Day Night Differential = (Hourly rate × 10% × 8 hours) Php 45.60 = (Php 57.00 × 0.10 × 8 hours)

How much is the night shift differential?

Night pay is a 10 percent differential paid to an employee for regularly scheduled work performed at night. It is computed as a percentage of the employee’s rate of basic pay (including any applicable locality payment or special rate supplement).

Is night differential pay mandatory?

Extra pay for working night shifts is a matter of agreement between the employer and the employee (or the employee’s representative). The Fair Labor Standards Act (FLSA) does not require extra pay for night work.

Is night differential included in 13th month pay?

Wage is the amount paid to an employee in exchange for a task, piece of work, or service rendered to an employer. This includes overtime, night differential, rest day, holiday and 13th month pay.

Who are entitled to night shift differential Philippines?

Under Philippine labor laws, an employee who works between 10 p.m to 6:00 a.m. should be paid a night shift differential of not less than ten percent (10%) of his regular wage. 6.

How is night shift allowance calculated?

A night shift allowance will be equal to 15% of the normal cost to company remuneration will be paid where at least half the shift falls between the hours of 18:00 and 06:00. Should the shift be deemed to be worked on a public holiday, the employee will be paid double her basic hourly rate.

What is overnight premium pay?

Overnight shifts shall be paid at a minimum of 10 hours or more if purchased by the purchaser of the service, at the employee’s regular rate of pay. Night Shift Premiums will increase to $2.25/hour on the first pay period after April 1, 2020 and $2.50/hour on the first pay period after April 1, 2021.

Is shift differential included in base pay?

How to calculate shift differential. Shift differentials come in three forms: a percentage of basic hourly pay, a dollar amount per hour, or a dollar amount per shift.

Who are entitled for night differential?

A prevailing rate employee who works on a regularly scheduled shift of less than 8 hours duration (such as a part-time or intermittent employee) is entitled to a night shift differential if a majority of the employee’s hours are worked during a period in which a night shift differential is payable.

Is 13th month pay mandatory in Philippines?

13th month pay is an amount equal to 1/12 of the annual salary, paid by December 24 of each year. Because it is mandatory, employers don’t have any discretion of whether to pay it or not based on employee performance or business revenues.