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 when you work late-night overtime. Compute it with your overtime →
How night differential works
The Labor Code requires employers to pay covered employees a night-shift differential of at least 10% of their regular wage for each hour worked between 10 PM and 6 AM. It is based on the time of day, not the number of hours — so even your first hour of work counts if it falls in that window.
Night differential = Hourly rate × 10% × Night hoursWorked examples
Regular night hours (hourly rate ₱100, 4 hours between 10 PM–6 AM):
₱100 × 10% × 4 = ₱40 night differential
(on top of the ₱100 × 4 = ₱400 basic pay → ₱440 total)Overtime at night (hourly rate ₱100, 2 hours of ordinary-day overtime, both at night):
Overtime: ₱100 × 1.25 × 2 = ₱250
Night differential: ₱100 × 1.25 × 10% × 2 = ₱25
Total: ₱275When the night hours are also overtime or holiday hours, the 10% is computed on the premium hourly rate, not the plain one.
Who is entitled
Night differential covers most rank-and-file private-sector employees. The Labor Code exempts certain groups, including managerial employees, field personnel whose hours can’t be determined, and workers in some government offices (which follow their own rules). If you’re unsure, check your company policy or ask HR.
How it stacks with overtime and holidays
Night differential is independent of:
- Overtime (work beyond 8 hours) — see the overtime pay rate guide.
- Holiday and rest-day premiums — see holiday pay computation.
You apply the day-type and overtime multipliers first, then add 10% on top for the hours worked at night. The Overtime Pay Calculator does this for you — just enter how many of your overtime hours fell between 10 PM and 6 AM.
Related labor pay rules
Sources: Labor Code of the Philippines, Book III; DOLE Handbook on Workers’ Statutory Monetary Benefits. For estimation only — confirm with DOLE or your HR.