Overtime Pay and Night Shift Differential in the Philippines. 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'çlock in the evening and six o'clock in the morning. Night shift differential is from 10pm to 6am the following day. 110% x number of hours in excess of 8 hours (130% x hourly rate)Monthly rate: Php10,000Daily rate (20 working days/month): 10,000/20= Php500Hourly rate (8 hours): 500/8= Php 62.50, What is the overtime pay computation for employees working on a night shift during a special day? In line with that, you should pay for their rendered service in … The employee will be paid according to the hours of work or rendered service. 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. When they work the night shift they are paid a shift differential of $2 an hour. For example, the employee is paid $10.00 per hour plus a $2.00 per hour shift differential for the night shift. When working overtime, RNs are paid time-and-one-half of their basic hourly rate of $22. The Department of Labor and Employment has published advisory guidelines on the adoption of flexible work arrangements which includes compressed workweeks among a range of flexible arrangements which employers may consider implementing in times of economic difficulty or national emergency. However, the following employees are NOT entitled to … Accordingly, they are not entitled to holiday pay, overtime pay, premium pay, night shift differential pay, and service incentive leave. 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). Where an employee is made or permitted to work on his scheduled rest day or a special day, he is paid an additional compensation of at least 30% of his regular wage (130% of the normal wage rate). Overtime work. Gross salary is how much the employee earned, including overtime, night shift differential and other additional compensation, based on actual number hours of work. If work is performed on a rest day which is also a special day, worker is paid 150% of the normal wage rate. *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. 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. The employer cannot use the offset to keep the company from compensating the employee with required overtime rates. If your employee works beyond eight hours, you must pay overtime wages. However, kasambahay under the age of 18 years are not allowed to work more than 8 hours a day, 5 days a week, exclusive of 1 hour breaks for each regular meal of the day. Overtime pay, on the other hand, is additional pay for work performed beyond 8 hours in a day. On an ordinary day, the overtime rate per hour is determined as follows: The normal hours of work of any employee cannot exceed eight (8) hours a day. This extra pay needs to be added into the Regular Rate to make the overtime rate bigger. Night shift differential. 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