Handbook on Workers' Statutory Monetary Benefits (2024)

Night Shift Differential: Definition

Night Shift Differential (NSD) refers to the additional compensation of 10% of an employee’s regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. of the following day.

Night Shift Differential: Coverage

This benefit applies to all employees except: 1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws; 2. Those of retail and service establishments regularly employing not more than five workers; 3. Kasambahay and persons in the personal service of another; 4. Managerial employees, if they meet all of the following conditions: 4.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 4.2 They customarily and regularly direct the work of two or more employees therein; and 4.3 They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight. 5. Officers or members of a managerial staff, if they perform the following duties and responsibilities: 5.1 Primarily perform work directly related to management policies of their employer; 5.2 Customarily and regularly exercise discretion and independent judgment; 5.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special assignments and tasks; and 5.4 Do not devote more than 20% of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 5.1, 5.2, and 5.3 above; and 6. Field personnel and those whose time and performance are unsupervised by the employer.

Night Shift Differential: Night Shift Differential Rate

The minimum night shift differential varies according to the day the night shift work is performed. For work performed between 10:00 p.m. and 6:00 a.m. the following day, the employer shall pay the employee an additional 10% of the corresponding hourly rate for the night shift work.