After reading “What is the rule on payment of Night Shift Differential?”, read also “What are the principles in determining hours worked?”
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An employee shall be paid night shift differential of no less than ten per cent (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.
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Overtime pay does not preclude night differential pay.
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Additional compensation for nighttime is founded on public policy.
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 10pm and 6am. (Article 86, Labor Code)
To illustrate, if an employee has a regular wage of Php100.00 for each hour of work done between 10pm and 6pm, the employee shall be paid Php110.00 (or an additional 10% of his regular wage) per hour worked during such time interval.
Night shift differential pay is given as a premium for working at a time when the employee is supposed to sleep and rest in accordance with the law of nature. Additional compensation for nighttime is founded on public policy. Therefore, the same cannot be waived. (Mercury Drug Co., Inc. vs. Dayao, G.R. No. L-30452, September 30, 1982)
When the work of an employee falls at night time, the receipt of overtime pay shall not preclude the right to receive night differential pay. The reason is the payment of the night differential pay is for the work done during the night; while the payment of the overtime is for work in excess of the regular eight (8) working hours. Overtime pay does not preclude night differential pay. (Naric vs. Naric Workers Union, G.R. No. L-12075, May 29, 1959)
What is the rule regarding night shift differential and overtime work? The law says:
Where an employee is permitted or suffered to work on the period covered after his work schedule, he shall be entitled to his regular wage plus at least twenty-five percent (25%) and an additional amount of no less than ten percent (10%) of such overtime rate for each hour or work performed between 10 p.m. to 6 a.m. (Section 3, Rule II, Book III, Implementing Rules and Regulations of the Labor Code)
Thus, the computation of night shift where work is overtime work on an ordinary day is: plus 10% of the overtime hourly rate on an ordinary day or a total of 110% of the overtime hourly rate on an ordinary day.
What is the rule regarding night shift differential and scheduled rest day or special holiday work? The law says:
An employee who is required or permitted to work on the period covered during rest days and/or special holidays not falling on regular holidays, shall be paid a compensation equivalent to his regular wage plus at least thirty (30%) percent and an additional amount of not less than ten (10%) percent of such premium pay rate for each hour of work performed. (Section 4, Rule II, Book III, IRR of the Labor Code)
Thus, the computation of night shift where work is overtime work on a rest day or special holiday is: plus 10% of the overtime hourly rate on a rest day or special day.
What is the rule regarding night shift differential and regular holiday pay? The law says:
For work on the period covered during regular holidays, an employee shall be entitled to his regular wage during these days plus an additional compensation of no less than ten (10%) per cent of such premium rate for each hour of work performed. (Section 5, Rule II, Book III, IRR of the Labor Code)
Thus, the computation of night shift where work is overtime work on a regular holiday is: plus 10% of the overtime hourly rate on a regular holiday.
Who are excluded from the coverage of night shift differential? The law says:
The provisions of this Title (Working Conditions and Rest Periods) shall apply to employees in all establishments and undertakings whether for profit or not, but not to government employees, managerial employees, field personnel, members of the family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of another, and workers who are paid by results as determined by the Secretary of Labor in appropriate regulations. (Article 82, Labor Code)
Aside from the abovementioned, the Implementing Rules and Regulations of the Labor Code further enumerates employees exempt from receiving night shift differential.
The law says:
This Rule shall apply to all employees except:
- Those of the government and any of its political subdivisions, including government-owned and/or controlled corporations;
- Those of retail and service establishments regularly employing not more than five (5) workers;
- Domestic helpers and persons in the personal service of another;
- Managerial employees as defined in Book Three of this Code;
- Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof. (Section 1, Rule II, Book III, IRR of the Labor Code)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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