Read also: Can Employees Be Compelled To Render Overtime Work? Night-shift differential pay may be granted to government personnel at a rate not exceeding 20% of the hourly basic rate of the employee.-- uno. So if he or she worked for less than 8 hours, the compensation will be adjusted accordingly. If a worker works on a regular holiday, he is paid an additional compensation of at least 100% of his regular wage (200% of the normal wage rate). An employee is entitled to night pay for those hours that must be worked between 6 p.m. and 6 a.m. to complete an 8-hour daily tour of duty. Republic of the Philippines. (When an employee is required to work beyond the normal 8 hours, they are entitled to receive Overtime Pay) If the employee’s overtime reaches overnight or the night differential time frame, the night differential would affect the overtime rate of the employee. What is the computation for overtime pay on a regular work day?Here's a sample computation based on the given values (monthly rate: Php18,000; factor rate: 258; 246 total regular days + 12 regular holidays): Daily rate: 18,000 x 12 / 258= Php837.21Hourly rate (8 hours): 837.21 / 8= Php 104.65, Number of hours in excess of 8 hours (125% x hourly rate x number of hours rendered)Overtime hourly rate: 1.25 x 104.65= Php 130.81/hour, What is the computation for overtime pay on a rest day? Ensuring your workspaces are ready for your return and the new norm. Women and young persons are prohibited from night work. Weekends–Saturday and Sunday–are usually allotted as rest days. The personal and additional exemptions of employees previously available under R.A. 9504 were also removed. Source: §82, 83, 84, 87, 88 and 89 of the Labour Code, as amended; §12A of the Special Protection of Children against Child Abuse, Exploitation and Discrimination Act; Department Advisory No. Employees working anytime from 10 o’clock in the evening to 6 o’clock in the morning qualifies for the Night Shift Differential (NSD). Night shift differential. *same monthly rate applied in the computation, special day: 110% x (130% x basic pay)10,000 x 1.3 = Php 13,000Special day premium pay, night shift: (i.e., 20 working days/month): 1.1 x (13,000/20)= Php 715/day, Special day that coincided on a scheduled rest day: 110% x (150% x basic pay)10,000 x 1.5 = Php 15,000Special and rest day premium pay (i.e., 20 working days/a month): 1.1 x (15,000/20)= Php 825/day, What is the overtime pay computation for employees working on a night shift during a regular holiday? No. Article 86 - Night shift differential; Article 87 - Overtime work; Article 88 - Undertime not offset by overtime; Article 89 - Emergency overtime work; Article 90 - Computation of additional compensation; Article 91 - Right to weekly rest period; Article 92 - When employer may require work on a rest day; Overtime work. How to Compute Overtime Pay All employees required to work beyond the normal 8 hours are entitled to overtime. When they work the night shift they are paid a shift differential of $2 an hour. Overtime Work Work may be performed beyond eight hours a day provided that the employee is paid for the overtime work, which consists of an additional compensation equivalent to his regular wage plus at least 25% thereof. Working hours in the Philippines cannot exceed eight hours in a day, not including the mandatory one-hour lunch break. No statutory provisions in law could be identified that stipulate whether the employees are to be given compensatory rest days for working on public holidays or weekly rest days. COLA is not included in overtime calculation. Shift differentials aren’t required by federal law, but many companies, especially in the manufacturing industry, offer them as a way of encouraging employees to take an “undesirable” shift such as the night shift or a weekend shift. 22009 Guidelines on the Adoption of Flexible Work Arrangements Part III, point 1. Powered by the WageIndicator Foundation - Share and compare wages, understand Labour Laws and spot career opportunities. Night work is regulated under the Labour Code which provides for a night shift differential. However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. Processing of Payroll Mywage.org/Philippines is connected to the WageIndicator Network. *same monthly rate applied in the computationRegular holiday: (200% x basic pay)18,000 x 2 = Php36,000Holiday pay (i.e., 20 working days/month): 36,000/20 = Php1,800/day, Regular holiday that coincided on a scheduled rest day: (260% x basic pay)18,000 x 2.6 = Php46,800Premium pay (i.e., 20 working days/month): 46,800/20= Php 2,340/day. Law on Night Shift Differential in the Philippines WHAT IS NIGHT SHIFT DIFFERENTIAL Article 86 of our labor provides that every employee shall be paid a night shift differentialof not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning. NIGHT SHIFT DIFFERENTIAL . One of the reasons is the night shift differential pay. An employee is entitled to night pay for any nonovertime work performed between 6 p.m. and 6 a.m. during designated core hours. The main question you have to ask is: what kind of non-working day is this? Art. Overtime pay rates depend upon the the day the work is performed, whether it is ordinary working day, special day, regular holiday or rest day. 87. Thus, ... the employer is required to pay the employee a night shift differential pay computed at 10% more than the regular hourly rate of a worker. Industry sectors are segmented as follows: 1. Women and young persons are prohibited from night work. If the employee is late for 1 minute, the deduction must not be based more than 1 minute. 442 of 1974), Special Protection of Children against Child Abuse, Exploitation and Discrimination Act, Department Advisory No. 22009 Guidelines on the Adoption of Flexible Work Arrangements Part III, point 1. Art. Cottage and handicraft For example, on average, the minimum daily payroll in the Phili… However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. What is the overtime pay computation for employees working on a night shift during a rest day? Employees extending their work hours during in the night shift will be given an additional 25% as his overtime rate with their regular hourly rate, plus ten percent 10% for every hour of working between the covered period. Source: §91-94 of the Labour Code, as amended, Living and Working during the Coronavirus Pandemic - Link me to the Covid 19 Survey and Daily Updates, Cite this page © WageIndicator 2021 - Mywage.org/Philippines -, Living and Working during the Coronavirus Pandemic, Survey on Living and Working in Philippines during Coronavirus, Coronavirus Work & Life in Maps and Graphs - updated daily, Daily updated Maps on Living and Working during Coronavirus, Daily updated Graphs on Living and Working during Coronavirus. Gross salary is how much the employee earned, including overtime, night shift differential and other additional compensation, based on actual number hours of work. What is the overtime pay computation for employees working on a night shift during a rest day? Employers must also take note of the night shift differential rate. 6727, and vary depending on the sales of the company as well as the number of employees. A prevailing rate employee is entitled to a night shift differential when the majority of hours worked during a regularly scheduled nonovertime shift occur in either of these two shifts: "Majority of hours" means a number of whole hours greater than one-half (including meal … When they work the evening shift, they are paid a shift differential of $1 an hour. The employer cannot use the offset to keep the company from compensating the employee with required overtime rates. Night Shift Differential in the Philippines WHAT IS NIGHT SHIFT DIFFERENTIAL Article 86 of our labor provides that every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in … Agricultural 3. DEPARTMENT OF LABOR AND EMPLOYMENT. N ight Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m. Generally, all employees are entitled to night shift differentials, except the following: If the day factor is 365, rest day is paid even when no work is done. 2. Accordingly, they are not entitled to holiday pay, overtime pay, premium pay, night shift differential pay, and service incentive leave. How many hours are allowed for overtime work?Employees can render up to eight (8) hours of overtime work. 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). Overtime pay, on the other hand, is additional pay for work performed beyond 8 hours in a day. – Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten oclock in the evening and six oclock in the morning. However, not all employees are entitled to night shift differential. If work is performed on a rest day which is also regular holiday, worker is paid 260% of the normal wage rate. Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and holidays helps you establish a reputable image for your business. Night Shift Differential in the Philippines WHAT IS NIGHT SHIFT DIFFERENTIAL Article 86 of our labor provides that every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in … The maximum working hours on such days cannot exceed 12 hours per day. Moreover, under time work on a day cannot be offset by overtime work on another day. In the Philippines, the minimum wage rates differ for every region, province, and industry. Rest periods of short duration during working hours are regarded as hours worked. Overtime work. These rates are set by the Wage Rationalization Act, Republic Act No. Overtime pay rates are covered under the Labour Code. These guidelines define a compressed workweek as being one where the normal workweek is reduced to less than 6 days but the weekly working hours (48 hours) remain unchanged. Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am; To determine the employee Night Differential pay: Special Holiday Rest day Night Differential = (Hourly … 87. Monthly rate: Php10,000Daily rate (20 working days/month): 10,000/20= Php500Hourly rate (8 hours): 500/8= Php 62.50, 110% x number of hours in excess of 8 hours (130% x hourly rate)Night shift overtime hourly rate: 1.1 x (1.30 x 112.5)= Php 89.375/hour. Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning. Source: Article 86, Labor Code of the Philippines 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). Basic Labor Code of the Philippines - Night Shift Differential (NSD) Night Shift Differential 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. “Article 82 of the Labor Code states that the provisions of the Labor Code on working conditions and rest periods shall not apply to managerial employees. Take note that it can fall into more than one category: it can be both a rest day and a regular holiday, for example. If your employee works beyond eight hours, you must pay overtime wages. ARTICLE 87. Employees who work between the hours of 10 p.m. to 6 a.m. are entitled to night shift differential pay also known as Night Shift Pay to compensate them for the hazards and inconvenience of working at odd hours when the body is normally asleep. Deduction of undertime must be based on the employee’s tardiness and salary. This extra pay needs to be added into the Regular Rate to make the overtime rate bigger. *same monthly rate applied in the computation, Regular holiday (200% x basic pay)10,000 x 2 = Php 20,000Holiday pay (i.e., 20 working days/month): 1.1 x (20,000/20) = Php 1,100/day, Regular holiday that coincided on a scheduled rest day (260% x basic pay)10,000 x 2.6 = Php 26,000Premium pay (i.e., 20 working days/a month): 1.1 x (26,000/20) = Php 1,430/day, How a PEZA-Accreditation Can Benefit Your Business, 15-Minute Team Building Activities You Can Apply in the Workplace, The Pros and Cons of Working in a Call Center in Manila, Overtime Pay Computations And Policies In The Philippines, , you must know the policies regarding overtime pay computation, or, . As far as the rate of night work is concerned, night shift employees must be paid a differential of at least 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. When working overtime, RNs are paid time-and-one-half of their basic hourly rate of $22. Is it a rest day, a regular holiday, or a special non-working day? When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon. Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m. If you are running a business in the Philippines, you must know the policies regarding overtime pay computation, or shift differentials. What is the overtime pay computation for employees working on a night shift during a regular workday? In line with that, you should pay for their rendered service in … If you are running a business in the Philippines, you must know the policies regarding overtime pay computation, or shift differentials.Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and holidays helps you establish a reputable image for your business. The worker should be paid overtime pay, equivalent to 125% of his usual rate per hour. Every employee shall be paid a night shift premium of not less than 10% of their regular wage for each hour of work performed between 10:00 PM and 6:00 AM. OVERTIME PAY • An employee is entitled to overtime pay for each hour of work done beyond normal working hours • The overtime rate on normal day is 25% • The overtime rate on rest day and holiday is 30%. 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