Night differential in the Philippines (night shift differential, or ND) is extra pay of at least 10% of an employee’s regular hourly rate for every hour worked between 10:00 PM and 6:00 AM. It is required by Article 86 of the Labor Code and applies on ordinary days, rest days, special days and holidays.
Quick answer: Night differential = hourly rate × 10% × hours worked from 10 PM to 6 AM. An employee earning ₱100 an hour gets at least ₱10 extra for each night hour. On rest days, holidays and overtime hours, the 10% is computed on the higher rate for that hour.
Last updated: October 29, 2026
- Night differential is at least 10% of the hourly rate for each hour worked from 10 PM to 6 AM (Article 86, Labor Code).
- On a rest day, holiday or during overtime, the 10% is applied to the premium rate for that hour.
- Employers can pay more than 10% through company policy or a CBA, but never less.
- Night differential is taxable for regular employees but tax-exempt for statutory minimum wage earners.
Night Differential Calculator (Philippines)
Enter the salary, the type of day and how many hours fell between 10 PM and 6 AM. The calculator adds the night differential to the regular, overtime and holiday pay for that day.
Night Differential Rates 2026
The night differential is always 10% of the rate that applies to that hour. The last column assumes an hourly rate of ₱100 (a daily rate of ₱800).
| Situation | Night differential per hour | Formula | At ₱100/hour |
|---|---|---|---|
| Ordinary working day | 10% of hourly rate | ₱100 × 10% | ₱10.00 |
| Overtime on an ordinary day | 10% of 125% | ₱125 × 10% | ₱12.50 |
| Rest day or special non-working day | 10% of 130% | ₱130 × 10% | ₱13.00 |
| Overtime on a rest day or special day | 10% of 169% | ₱169 × 10% | ₱16.90 |
| Special non-working day on a rest day | 10% of 150% | ₱150 × 10% | ₱15.00 |
| Regular holiday | 10% of 200% | ₱200 × 10% | ₱20.00 |
| Overtime on a regular holiday | 10% of 260% | ₱260 × 10% | ₱26.00 |
| Regular holiday on a rest day | 10% of 260% | ₱260 × 10% | ₱26.00 |
| Double regular holiday | 10% of 300% | ₱300 × 10% | ₱30.00 |
So the full pay for one night hour is the hourly rate for that day × 110%. For example, one night hour on a regular holiday pays ₱100 × 200% × 110% = ₱220.
How to Compute Night Differential: Step by Step
- Find the hourly rate. Daily rate ÷ 8. For monthly-paid employees, first convert the salary to a daily rate: monthly salary × 12 ÷ 261, 313 or 365 paid days.
- Apply the rate for that hour. Use 100% on an ordinary day, 130% on a rest day or special day, 200% on a regular holiday, and add the overtime premium for hours beyond eight.
- Take 10% of that rate. This is the night differential per hour.
- Multiply by the paid hours worked from 10 PM to 6 AM. Unpaid meal breaks inside that window do not count. Short rest breaks of 5 to 20 minutes are counted as hours worked.
Example 1: BPO agent on a regular night shift
Dana earns ₱30,000 a month, works Monday to Friday, and her shift runs from 10 PM to 7 AM with a one-hour unpaid meal break at 2 AM. She works 22 shifts this month.
- Daily rate: ₱30,000 × 12 ÷ 261 = ₱1,379.31, so the hourly rate is ₱172.41
- Night differential per hour: ₱172.41 × 10% = ₱17.24
- Paid night hours per shift: 10 PM to 6 AM is 8 hours, minus the 1-hour break = 7 hours
- Per shift: ₱17.24 × 7 = ₱120.69
- Night differential for the month: ₱120.69 × 22 shifts = ₱2,655.17
Example 2: Night hours on a regular holiday
Eli earns ₱800 a day and works 2 PM to 11 PM (with a one-hour meal break) on Christmas Day. One hour, 10 PM to 11 PM, falls in the night window.
- Holiday pay for 8 hours: ₱800 × 200% = ₱1,600
- Night differential: ₱100 × 200% × 10% × 1 hour = ₱20
- Total for the day: ₱1,620
Night shifts that cross midnight into or out of a holiday need care: only the hours that fall on the holiday itself get holiday rates. See our guide to holiday pay in the Philippines.
Who Is Entitled to Night Differential?
Most private-sector employees are covered. The Labor Code’s implementing rules exclude:
- Government employees
- Retail and service businesses that regularly employ no more than five workers
- Domestic workers and people in the personal service of another
- Managerial employees, and officers or members of the managerial staff
- Field personnel and other employees whose time and performance are not supervised by the employer, including those paid purely by commission or by task
Employees who work from home are covered too. The Telecommuting Act (RA 11165) requires employers to give telecommuting employees the same treatment as comparable on-site employees, so work-from-home hours between 10 PM and 6 AM earn night differential.
Night Differential Rules for Employers
- 10% is the floor. Company policy, an employment contract or a CBA can set a higher rate, and many BPOs do.
- Apply it on top of other premiums. Night differential stacks on top of overtime, rest day and holiday rates. It is computed on the rate for that hour, not just the basic rate.
- It cannot be waived. A salary that is “inclusive of night differential” must still add up to at least what the law requires.
- Protect night workers. RA 10151 removed the old ban on night work for women and added protections for all night workers, including free health assessments and suitable facilities.
- It is not part of 13th-month pay. The 13th-month base is basic salary only, so night differential is excluded unless a contract treats it as basic pay.
Is Night Differential Taxable?
Yes, for regular employees. Night differential is taxable compensation and is included in the BIR withholding tax computation. Statutory minimum wage earners are exempt from income tax on their night differential, along with their minimum wage, overtime pay, holiday pay and hazard pay.
Running a night shift team in the Philippines?
Asiacruit handles payroll for night-shift and BPO teams, including night differential, overtime and holiday premiums, with or without a local entity. Employer of Record services start at $199 per employee per month.
Schedule a call with usOfficial sources: Department of Labor and Employment (DOLE), Labor Code of the Philippines, Article 86, and DOLE’s Handbook on Workers’ Statutory Monetary Benefits. Check the latest DOLE advisories before running payroll.
Frequently Asked Questions
Multiply the hourly rate by 10% and by the number of hours worked between 10 PM and 6 AM. For example, an employee earning ₱100 an hour who works 8 night hours gets ₱100 × 10% × 8 = ₱80 in night differential.
Hours worked from 10:00 PM to 6:00 AM count. Unpaid meal breaks inside that window are excluded, while short rest breaks of 5 to 20 minutes are counted as hours worked.
The legal minimum is 10% of the hourly rate. Employers can pay a higher rate, such as 15% or 20%, through company policy, an employment contract or a collective bargaining agreement.
It is 10% of the holiday hourly rate. On a regular holiday paid at 200%, night differential is 20% of the basic hourly rate for each night hour. On a special non-working day paid at 130%, it is 13% of the basic hourly rate.
Yes for regular employees, as part of taxable compensation. Statutory minimum wage earners are exempt from income tax on night differential, overtime pay, holiday pay and hazard pay.
Yes. Under the Telecommuting Act (RA 11165), telecommuting employees must receive the same treatment as comparable on-site employees, so covered employees who work from 10 PM to 6 AM at home are entitled to night differential.
