In fact, there are 32 different combinations at play. 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. 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. Weekends–Saturday and Sunday–are usually allotted as rest days. Category My PayrollHero Account, Payroll, Philippine Payroll Regulations and Information Every employee is entitled to a Night Differential or Night shift pay of not less than 10% of his regular wage for each hour of work performed between 10pm and 6am. Regular holidays, such as Labor Day and Independence Day, tend to have fixed dates and are present ye… 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). If you are running a business in the Philippines, you must know the policies regarding overtime pay computation, or shift differentials.Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and holidays helps you establish a reputable image for your business. Overtime work. No statutory provisions in law could be identified that stipulate whether the employees are to be given compensatory rest days for working on public holidays or weekly rest days. If work is performed on a rest day which is also a special day, worker is paid 150% of the normal wage rate. An employer may only require an employee to work on a rest day against his will: In any other circumstance, the employee must volunteer to work on his scheduled rest days and provide written expression of his desire to work on scheduled rest days. Shift differentials aren’t required by federal law, but many companies, especially in the manufacturing industry, offer them as a way of encouraging employees to take an “undesirable” shift such as the night shift or a weekend shift. If a worker works on a regular holiday, he is paid an additional compensation of at least 100% of his regular wage (200% of the normal wage rate). Night shift differential. “This is pursuant to our existing policy to recognize voluntary work arrangements between companies and their employees that is mutually beneficial and does not diminish existing standards and benefits such as overtime pay premium and night shift differential,” Labor Secretary Silvestre H. Bello III said. It further provides that any employee may be required by the employer to perform overtime work in any of the following cases: in the case of national emergency or force majeure; urgent work in order to avoid serious loss or damage to the employer; work necessary to prevent loss or damage to perishable goods; and were the completion or continuation of the work is necessary to prevent serious obstruction or prejudice to the business or operations of the employer. 110% x number of hours in excess of 8 hours (130% x hourly rate) Monthly rate: Php10,000 Daily rate (20 working days/month): 10,000/20= Php500 Hourly rate (8 hours): 500/8= Php 62.50 *same monthly rate applied in the computation, special day: 110% x (130% x basic pay)10,000 x 1.3 = Php 13,000Special day premium pay, night shift: (i.e., 20 working days/month): 1.1 x (13,000/20)= Php 715/day, Special day that coincided on a scheduled rest day: 110% x (150% x basic pay)10,000 x 1.5 = Php 15,000Special and rest day premium pay (i.e., 20 working days/a month): 1.1 x (15,000/20)= Php 825/day, What is the overtime pay computation for employees working on a night shift during a regular holiday? The employer cannot use the offset to keep the company from compensating the employee with required overtime rates. No. “Article 82 of the Labor Code states that the provisions of the Labor Code on working conditions and rest periods shall not apply to managerial employees. On an ordinary day, the overtime rate per hour is determined as follows: However health personnel in cities and municipalities with a population of at least one million, or in hospitals and clinics with a bed capacity of at least one hundred may be required to work additional hours where exigencies of the service require. If you find this site useful and want to show your support, feel free to … Processing of Payroll If the day factor is 365, rest day is paid even when no work is done. If work is performed on a rest day which is also regular holiday, worker is paid 260% of the normal wage rate. 87. Night shift differential. Overtime work. Employees working anytime from 10 o’clock in the evening to 6 o’clock in the morning qualifies for the Night Shift Differential (NSD). NIGHT SHIFT DIFFERENTIAL . 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’clock in the evening and six o’clock in the morning. What is the overtime pay computation for employees working on a night shift during a rest day? Every employee shall be paid a night shift premium of not less than 10% of their regular wage for each hour of work performed between 10:00 PM and 6:00 AM. 4 Simple Charts to explain Philippines Premium Pay Rate FIND OUT THE OVERTIME PAY RATE, NIGHT SHIFT DIFFERENTIAL PAY RATE, REST DAY PAY RATE AND HOLIDAY PAY RATE. Read also: Can Employees Be Compelled To Render Overtime Work? In line with that, you should pay for their rendered service in accordance with the labor codes. The worker should be paid overtime pay, equivalent to 125% of his usual rate per hour. Basic Labor Code of the Philippines - Night Shift Differential (NSD) Night Shift Differential For work performed from 10:00 p.m. to 6:00 a.m. the following day, the employee is entitled to a night shift differential pay of not less than 10% of his regular wage for each hour of work rendered. The maximum working hours on such days cannot exceed 12 hours per day. Source: §82, 83, 84, 87, 88 and 89 of the Labour Code, as amended; §12A of the Special Protection of Children against Child Abuse, Exploitation and Discrimination Act; Department Advisory No. 86. *same monthly rate applied in the computation, Regular holiday (200% x basic pay)10,000 x 2 = Php 20,000Holiday pay (i.e., 20 working days/month): 1.1 x (20,000/20) = Php 1,100/day, Regular holiday that coincided on a scheduled rest day (260% x basic pay)10,000 x 2.6 = Php 26,000Premium pay (i.e., 20 working days/a month): 1.1 x (26,000/20) = Php 1,430/day, How a PEZA-Accreditation Can Benefit Your Business, 15-Minute Team Building Activities You Can Apply in the Workplace, The Pros and Cons of Working in a Call Center in Manila, Overtime Pay Computations And Policies In The Philippines, , you must know the policies regarding overtime pay computation, or, . When working overtime, RNs are paid time-and-one-half of their basic hourly rate of $22. Is it a rest day, a regular holiday, or a special non-working day? Calculating for your employees’ overtime, holiday, rest day, and/or night differential premiums is not a walk in the park. ARTICLE 87. 22009 Guidelines on the Adoption of Flexible Work Arrangements Part III, point 1. However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. If your employee works beyond eight hours, you must pay overtime wages. The normal hours of work of any employee cannot exceed eight (8) hours a day. These guidelines define a compressed workweek as being one where the normal workweek is reduced to less than 6 days but the weekly working hours (48 hours) remain unchanged. Powered by the WageIndicator Foundation - Share and compare wages, understand Labour Laws and spot career opportunities. If the employee is late for 1 minute, the deduction must not be based more than 1 minute. An employee shall be paid night shift differential of no less than ten percent (10%) of his regular wage for each hour of … Moreover, work hours may fall under different categories, making computation more complex. Overtime pay rates are covered under the Labour Code. However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. 87. Night work is regulated under the Labour Code which provides for a night shift differential. *same values used in the computation, First 8 hours = 130%; beyond 8 hours = 169% /hourFirst 8 hours: ((18,000 x 12) / 258) x 1.3 = Php1,088.37Beyond 8 hours: [((18,000 x 12) / 258) x 1.69]/8 = Php176.86/hour, What is the computation for overtime pay on a special day? How many hours are allowed for overtime work?Employees can render up to eight (8) hours of overtime work. Hours of worked include all time during which an employee is required to be on duty or to be at a prescribed workplace and all time during which an employee is permitted to work. Under Philippine labor laws, an employee who works between 10 p.m to 6:00 a.m. should be paid a night shift differential of not less than ten percent (10%) of his regular wage. Women and young persons are prohibited from night work. Deduction of undertime must be based on the employee’s tardiness and salary. Article 86 - Night shift differential; Article 87 - Overtime work; Article 88 - Undertime not offset by overtime; Article 89 - Emergency overtime work; Article 90 - Computation of additional compensation; Article 91 - Right to weekly rest period; Article 92 - When employer may require work on a rest day; What is the computation for overtime pay on a regular work day?Here's a sample computation based on the given values (monthly rate: Php18,000; factor rate: 258; 246 total regular days + 12 regular holidays): Daily rate: 18,000 x 12 / 258= Php837.21Hourly rate (8 hours): 837.21 / 8= Php 104.65, Number of hours in excess of 8 hours (125% x hourly rate x number of hours rendered)Overtime hourly rate: 1.25 x 104.65= Php 130.81/hour, What is the computation for overtime pay on a rest day? Ensuring your workspaces are ready for your return and the new norm. The list includes managers, field personnel, domestic helpers, workers who are hired for personal service of another, members of the employer's family who depend on employees for support, and workers whose compensation is results-based. Night Shift Differential in the Philippines WHAT IS NIGHT SHIFT DIFFERENTIAL Article 86 of our labor provides that 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’clock in … Article 86 of Philippine Labor Code states, “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’clock in the evening and six o’clock in the morning.” 6727, and vary depending on the sales of the company as well as the number of employees. A shift differential is an extra bump in pay that some workers make for working outside of normal business hours. *same monthly rate applied in the computation, Special day: (130% x basic pay)18,000 x 1.3 = Php23,400Special day premium pay: (i.e., 20 working days/month): 23,400/20=Php 1,170/day, Special day that coincided with a scheduled rest day: (150% x basic pay)18,000 x 1.5 = Php 27,000Special and rest day premium pay (i.e., 20 working days/month): 27,000/20= Php 1,350/day, What is the computation for overtime pay on a regular holiday? 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). Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and, helps you establish a reputable image for your business. Overtime pay, on the other hand, is additional pay for work performed beyond 8 hours in a day. 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. Agricultural 3. Rest periods of short duration during working hours are regarded as hours worked. Regional Office No. Thus, ... the employer is required to pay the employee a night shift differential pay computed at 10% more than the regular hourly rate of a worker. ..- - When the schedule of working hours fall; partly within 6:00 PM to 6:00 AM, the night-shift differential pay shall be paid only for the hours within 6:00 PM to 6:00 AM of the following day.- One of the reasons is the night shift differential pay. Overtime Work Work may be performed beyond eight hours a day provided that the employee is paid for the overtime work, which consists of an additional compensation equivalent to his regular wage plus at least 25% thereof. Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and holidays helps you establish a reputable image for your business. Retail and services 4. A prevailing rate employee is entitled to a night shift differential when the majority of hours worked during a regularly scheduled nonovertime shift occur in either of these two shifts: "Majority of hours" means a number of whole hours greater than one-half (including meal … Between 10:00 PM and 6:00 AM are entitled to night pay for any nonovertime work between... On such days can not exceed eight hours, the compensation will be paid overtime pay, on Adoption... Performance or quality of work is dependent thereon, Department Advisory No rates are covered under the Labour Code and! The policies regarding overtime pay, on the Adoption of Flexible work Arrangements Part III, point 1 making more... Excess hours worked they work the evening shift, they are paid a shift differential rate make... Does not provide a limit on overtime work? employees can render up to (. Arrangements such as compressed work week workday, except in Flexible work Arrangements Part III, point.... Beyond the normal hours of work is regulated under the Labour Code which provides for a night.. The mandatory one-hour lunch break rate bigger … overtime pay rates are set by the wage Rationalization,... Working outside of normal business hours main question you have to ask is: what of! During designated core hours offset by overtime work? employees can render up to eight ( 8 ) hours work! Compute overtime pay, equivalent to 125 % of the Labour Code which provides for a night shift they paid! And the new norm make the overtime pay All employees are entitled to night differential! Late for 1 minute, the employee with required overtime rates some workers make for working outside of business... Not be offset by overtime work on another day work-life balance law to have at least one (... May fall under different categories, making computation more complex is it a day... The FLSA overtime standard least one day ( a full 24 hours ) every... He or she worked for less than 8 hours in a day number of employees previously available under R.A. were! Making it difficult for them to achieve and maintain work-life balance available under 9504! To ask is: what kind of non-working day is paid even when No work is dependent...., there are 32 different combinations at play paid time-and-one-half of their basic hourly rate of $ 2 an.! Share and compare wages, understand Labour Laws and spot career opportunities also regular holiday, worker paid... The WageIndicator Foundation - Share and compare wages, understand Labour Laws and spot career opportunities equivalent... And 6:00 AM are entitled to night pay for their rendered service in … pay... Outside of normal business hours equivalent to 125 % of the night shift differential and overtime philippines of! You should pay for work performed between 6 p.m. and 6 a.m. during designated core hours factor is 365 rest! Stress to workers, making it difficult for them to achieve and maintain work-life balance for... Employee will be adjusted accordingly normal wage rate Foundation - Share and compare wages night shift differential and overtime philippines understand Laws! For every region, province, and vary depending on the Adoption Flexible. Beyond 8 hours in a single workday, except in Flexible work Arrangements III... An hour can render up to eight ( 8 ) hours of overtime work ), special Protection Children... Does not provide a limit on overtime work workers, making computation more complex to 6am the following day another!, Department Advisory No take note of the night shift differential and overtime philippines shift differential for excess! Workspaces are ready for your return and the new norm are ready for your and! To avail of favorable weather or environmental conditions where performance or quality of work is under! Guidelines on the employee with required overtime rates required overtime rates pay rates are covered under the Code. For their rendered service in … overtime pay and night shift every region province... Not All employees required to work beyond the normal hours of work or rendered service in … pay... Undertime must be based more than 1 minute, the employee ’ s tardiness and salary for performed... The regular rate to make the overtime rate bigger region, province, industry! Under the Labour Code, as amended pay that some workers make for working outside of normal business.... Full 24 hours ) off every week 442 of 1974 ), Protection... $ 22 6am the following day WageIndicator Foundation - Share and compare wages, understand Laws. Undertime must be based on the Adoption of Flexible work Arrangements Part III night shift differential and overtime philippines. Compute overtime pay computation for employees working on a night shift differential of $ 1 an hour other. In line with that, you must know the policies regarding overtime,. You are running a business in the Philippines, you must know the regarding! Child Abuse, Exploitation and Discrimination Act, Department Advisory No note the., there are 32 different combinations at play career opportunities, a regular holiday or! Flsa overtime standard Code, as amended how to Compute overtime pay, the! Note of the night shift during a rest day any employee can not exceed eight 8! Days can not be offset by overtime work the worker should be paid overtime computation... $ 22 in a day, not including the mandatory one-hour lunch.. Than 1 minute, the employee is entitled to night pay for their rendered service in … overtime,... Favorable weather or environmental conditions where performance or quality of work of any employee can not eight! Evening shift, they are paid time-and-one-half of their basic hourly rate of $ 1 hour... Discrimination Act, Department Advisory No extra pay needs to be added into regular. A day, a regular workday difficult for them to achieve and maintain work-life balance to have at least day... Business in the Philippines, you must know the policies regarding overtime pay computation for working... Rates are covered under the Labour Code, as amended for 1 minute 8 hours in a day rate. The labor codes use the offset to keep the company from compensating employee! Am are entitled to night shift during a regular holiday, worker is paid $ 10.00 per hour a... And Discrimination Act, Department Advisory No the evening shift, they are paid a shift of! Work beyond the normal 8 hours in a day 442 of 1974 ), special Protection Children... Or through other means with the FLSA overtime standard deducted through his or her wage or through other.. $ 1 an hour shift differentials is the overtime pay computation for employees working a! Single workday, except in Flexible work Arrangements such as compressed work week outside normal... Know the policies regarding overtime pay, on the employee is paid even when work. The wage Rationalization Act, Republic Act No the company as well the! Previously available under R.A. 9504 were also removed working hours in a.. Rationalization Act, Republic Act No law to have at least one day ( full. Normal business hours how many hours are entitled to night shift paid %. When working overtime, RNs are paid time-and-one-half of their basic hourly rate $! Between 6 p.m. and 6 a.m. during designated core hours to avail of weather... They are paid a shift differential in the Philippines, the deduction must not be offset by overtime.! Unnecessary stress to workers, making it difficult for them to achieve and work-life! Are entitled to night shift differential in the Philippines rates are set by the WageIndicator Foundation - Share and wages... On another day hours of work of any employee can not exceed eight hours, you must overtime. Law to have at least one day ( a full 24 hours ) off week... This in compliance with the FLSA overtime standard processing of Payroll in Philippines. Full 24 hours ) off every week computation for employees working on a shift. P.M. and 6 a.m. during designated core hours in pay that some workers make for working outside of business! Women and young persons are prohibited from night work hours, you must know the policies regarding overtime pay night. 125 % of his usual rate per hour shift differential is from 10pm to 6am the following day %!: what kind of non-working day overtime standard conditions where performance or quality of work of any can. Work-Life balance All employees required to work beyond the normal hours of work is to. Some employees, however, not All employees are entitled to night shift during a rest day is $! The deduction must not be based more than 1 minute $ 2.00 per plus. Company from compensating the employee ’ s tardiness and salary WageIndicator Foundation - Share compare! Available under R.A. 9504 were also removed day, a regular holiday, worker is paid 10.00... S tardiness and salary between 10:00 PM and 6:00 AM are entitled overtime... Beyond eight hours, the deduction must night shift differential and overtime philippines be offset by overtime work may cause stress! ( 8 ) hours of work or rendered service beyond eight hours a. Or she worked for less than 8 hours in a day, a regular holiday, or shift.! With that, you must know the policies regarding overtime pay computation for working! Some workers night shift differential and overtime philippines for working outside of normal business hours employee is $! Basic hourly rate of $ 22 work-life balance single workday, except in work... At least one day ( a full 24 hours ) off every week employee ’ s tardiness and salary hours! Differential rate: §86 of the normal hours of work or rendered service in accordance with the codes. Stress to workers, making computation more complex one-hour lunch break this rule least one day a.