Quick answer: Night differential is an extra 10% of your hourly rate for every hour you work between 10:00 PM and 6:00 AM. It is separate from overtime: you can earn both at the same time, and the 10% is calculated on whatever hourly rate applies to that hour. Compute it for your shift →
How night differential works
Article 86 of the Labor Code requires a night shift differential of not less than 10% of the regular wage for each hour worked between 10 PM and 6 AM. It depends on the time of day, not on how long you work: even a single hour of work that falls inside the window counts.
Night differential = Hourly rate × 10% × Night hoursOnly the hours inside the window count. If you work 6 PM to 2 AM, that is eight hours of work but only four night hours (10 PM to 2 AM).
Worked examples (₱755 NCR minimum wage)
These examples use the ₱755 daily minimum wage under Wage Order NCR-28: an hourly rate of ₱755 ÷ 8 = ₱94.375.
A full night shift, 10 PM to 6 AM (8 hours)
Basic pay: ₱755.00
Night differential: ₱94.375 × 10% × 8 = ₱75.50
Total: ₱830.50A partial night: 8 PM to 4 AM (6 night hours)
Basic pay: ₱755.00
Night differential: ₱94.375 × 10% × 6 = ₱56.63
Total: ₱811.63An early start: 2 AM to 10 AM (4 night hours, 2 AM to 6 AM)
Basic pay: ₱755.00
Night differential: ₱94.375 × 10% × 4 = ₱37.75
Total: ₱792.75A BPO-style example on a monthly salary
A call-center agent earns ₱25,000 a month, works 10 PM to 6 AM and the employer uses a 261-day factor. The daily rate is ₱25,000 × 12 ÷ 261 = ₱1,149.43 and the hourly rate is ₱143.68. Eight night hours add ₱143.68 × 10% × 8 = ₱114.94 a shift. Over an average month (261 ÷ 12 = 21.75 workdays), that is roughly ₱2,500, or exactly 10% of the monthly salary when every working hour is a night hour. Always check your payslip for a separate night differential line.
How it stacks with overtime, rest days and holidays
The premiums multiply rather than add. Apply the day-type and overtime multipliers first, then add 10% of that rate for each night hour:
| Hour worked | Rate for the hour | Night differential adds |
|---|---|---|
| Ordinary night hour | 100% | 100% × 10% = 10% → 110% |
| Ordinary-day overtime at night | 125% | 12.5% → 137.5% |
| Rest-day night hour | 130% | 13% → 143% |
| Rest-day overtime at night | 169% | 16.9% → 185.9% |
| Special non-working day, night hour | 130% | 13% → 143% |
| Regular holiday, night hour | 200% | 20% → 220% |
| Regular holiday overtime at night | 260% | 26% → 286% |
Here are three examples with the ₱755 rate.
Overtime at night: an ordinary day from 2 PM to 2 AM (8 regular hours plus 4 overtime hours, the last 4 hours falling in the night window).
Overtime: ₱94.375 × 1.25 × 4 = ₱471.88
Night differential: ₱94.375 × 1.25 × 10% × 4 = ₱47.19Regular holiday, 10 PM to 6 AM:
Basic holiday pay: ₱755 × 200% = ₱1,510.00
Night differential: ₱94.375 × 200% × 10% × 8 = ₱151.00
Total: ₱1,661.00Rest day, 6 PM start, 8 + 2 overtime hours (ends 4 AM): 4 night hours in the regular period and 2 in overtime.
First 8 hours: ₱755 × 130% = ₱981.50
Overtime: ₱94.375 × 1.69 × 2 = ₱318.99
Night differential: ₱49.08 (regular) + ₱31.90 (OT) = ₱80.98
Total: ₱1,381.47See also rest day pay, holiday pay computation and the overtime pay rules.
Common payslip mistakes
- Night differential on the plain rate only. If your night hours are overtime, rest-day or holiday hours, the 10% must be computed on that higher rate, not on the ordinary hourly rate.
- Counting the whole shift. Only the hours between 10 PM and 6 AM count. A 6 PM to 2 AM shift has four night hours, not eight.
- Missing the early-morning hours. A shift that starts at 4 AM earns night differential for the first two hours, until 6 AM.
- Bundling it into basic pay. Night differential should be a separate, visible line on the payslip. If your contract says the salary already includes it, the amount must still be at least the 10% the law requires.
- Working past midnight into a holiday. Only the hours that fall on the holiday earn the holiday premium; the night differential applies to every hour in the window either way.
Who is entitled
Night differential covers most rank-and-file private-sector employees. Under the Omnibus Rules implementing the Labor Code, these groups are generally outside the private-sector rule:
- Government employees, who follow civil service pay rules instead.
- Employees of retail and service establishments regularly employing not more than five workers.
- Kasambahay and other persons in the personal service of another.
- Managerial employees and field personnel whose time is unsupervised.
Whether you fall in an exempt group depends on your actual duties and your employer’s size, not your title. If you are unsure, ask HR or contact DOLE.
Night differential and your 13th month pay
Night differential is not part of basic salary, so it does not increase your 13th month pay. It is taxable compensation for most workers, but minimum wage earners are exempt from income tax on it.
Related labor pay rules
Sources: Labor Code of the Philippines, Book III (PD 442), Article 86 and the Omnibus Rules implementing it; DOLE Handbook on Workers’ Statutory Monetary Benefits. For estimation only — confirm with DOLE or your HR.