Labor Code Article 86
Night Differential Calculator
Work out the night shift differential for hours worked between 10:00 PM and 6:00 AM, on ordinary days, rest days, or holidays.
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Night Differential
Total pay for these hours including the differential: ₱1,858.63.
For overtime hours worked at night, use the night-shift option in the overtime calculator instead.
Night shift pay guide
How night differential works in the Philippines
Article 86 of the Labor Code gives covered employees a night shift differential of at least 10% of their regular wage for each hour worked between 10:00 PM and 6:00 AM. It's added on top of the normal pay for those hours.
The day multiplier matters because the 10% is based on your pay rate for that day. On a rest day, your hourly rate is 130%, so the differential is 10% of 130%, or 13% of your basic hourly rate. On a regular holiday it's 10% of 200%, or 20%.
Night shift pay rates by type of day
| Type of day | Hourly rate for the day | With night differential |
|---|---|---|
| Ordinary workday | 100% | 110% |
| Rest day or special non-working day | 130% | 143% |
| Special day on a rest day | 150% | 165% |
| Regular holiday | 200% | 220% |
| Regular holiday on a rest day | 260% | 286% |
| Double holiday | 300% | 330% |
| Overtime on an ordinary workday, at night | 125% | 137.5% |
Worked example: a 10 PM to 7 AM shift
Say you work 10:00 PM to 7:00 AM with an unpaid one-hour meal break from 2:00 to 3:00 AM, and your basic hourly rate is ₱241.38.
- Hours worked: 9 hours on site − 1 hour break = 8 hours (no overtime).
- Hours inside the 10 PM to 6 AM window: 8 hours − 1 hour break = 7 night hours. The 6:00 to 7:00 AM hour is outside the window.
- Night differential: ₱241.38 × 7 × 10% = ₱168.97.
- Pay for the night: (₱241.38 × 8) + ₱168.97 = ₱2,100.01.
If the same shift fell on a regular holiday, the differential would be ₱241.38 × 2.00 × 7 × 10% = ₱337.93.
Who is entitled to night differential
Most private-sector employees who work between 10 PM and 6 AM qualify. The Labor Code's implementing rules exclude:
- Government employees and employees of government-owned or controlled corporations
- Retail and service establishments that regularly employ no more than five workers
- Managerial employees and officers or members of the managerial staff
- Field personnel, domestic workers, and workers paid by results
Many BPO and healthcare employers pay more than 10% by company policy. If your contract says 15% or 20%, enter that rate in the calculator.
Is night differential taxable?
For most employees, yes. It's part of taxable compensation. Minimum wage earners are exempt from income tax on their night differential, along with their holiday pay, overtime pay, and hazard pay.
Common questions
Night differential FAQs
What hours count for night differential?
Only hours actually worked between 10:00 PM and 6:00 AM. A shift from 6:00 PM to 3:00 AM earns night differential for the 10 PM to 3 AM part only.
Is the 10% based on my basic rate or my holiday rate?
It's based on the rate for that day. On a regular holiday, 10% of the 200% holiday rate means an extra 20% of your basic hourly rate.
Does my meal break count?
An unpaid meal break of at least 60 minutes isn't hours worked, so it doesn't earn night differential. A short paid break (5 to 20 minutes) counts as hours worked.
Can my employer pay less than 10%?
Not if you're covered by Article 86. The 10% is a minimum, and a contract or CBA can only set a higher rate.