Night differential in the Philippines is 10% of your hourly rate for each hour worked between 10:00 PM and 6:00 AM, required by Labor Code Article 86.
By the Orkids payroll engineering team · Reviewed against Labor Code Article 86, the DOLE Handbook on Workers' Statutory Monetary Benefits (2024 edition) & RA 10963 (TRAIN) · Updated June 2026
Your night differential
₱0.00
= hourly rate (₱0.00 = ₱0.00 ÷ 8) × 10% × 0 night hours. This premium is added on top of the regular or overtime pay you already earn for those hours.
Only hours actually worked between 10:00 PM and 6:00 AM qualify. If those hours are also overtime, the 10% night differential is computed on the applicable hourly rate for that work and stacks with the overtime premium. Estimate only — confirm with DOLE.
How is night differential computed?
Night differential is 10% of your hourly rate for each hour worked between 10:00 PM and 6:00 AM. The hourly rate is your daily rate divided by 8.
So the formula is: (daily rate ÷ 8) × 10% × night hours. For a ₱800 daily rate, the hourly rate is ₱100, the 10% night-differential rate is ₱10 per hour, and a full 8-hour graveyard shift earns ₱80 in night differential — on top of the ₱800 you already earn for the day's work.
| Daily rate | Hourly rate | Night hours | Night differential |
|---|---|---|---|
| ₱610 | ₱76.25 | 8 | ₱61.00 |
| ₱800 | ₱100.00 | 8 | ₱80.00 |
| ₱1,000 | ₱125.00 | 4 | ₱50.00 |
Which hours count as night differential?
Only hours actually worked between 10:00 PM and 6:00 AM qualify for night differential under Article 86 of the Labor Code.
If a shift starts at 6:00 PM and ends at 2:00 AM, only the four hours from 10:00 PM to 2:00 AM earn the 10% premium. Hours outside the 10 PM–6 AM window are paid at the regular rate, with no night differential.
Who is entitled to night differential?
Rank-and-file employees who work between 10:00 PM and 6:00 AM are entitled to night differential — it is a statutory minimum that cannot be waived.
Article 82 of the Labor Code excludes managerial employees, field personnel, members of the employer's family who depend on the employer for support, domestic helpers, and persons in the personal service of another. Everyone else covered by the working-conditions title earns the premium.
How does night differential stack with overtime?
Night differential is separate from overtime pay, so when night hours are also overtime, both premiums apply and stack on top of the regular pay.
Overtime pay (Article 87) covers hours beyond eight in a day; the night differential (Article 86) covers the 10 PM–6 AM window. The 10% is computed on the hourly rate applicable to that work, so it also stacks with rest-day and holiday premiums for hours that fall inside the night-shift window.
Night differential pay multipliers by day type
Night differential is always 10% of the hourly rate that applies to that work — so it compounds on top of any rest-day, special-day, regular-holiday, or overtime premium. The DOLE Handbook applies the premiums multiplicatively, in this order: day-type premium first, then overtime, then the 10% night differential. The figures below are the percentage of your plain basic hourly rate that each hour worked between 10:00 PM and 6:00 AM earns.
| When the night hours are worked | Day-type / OT base | × 110% night diff | Pay as % of basic hourly rate |
|---|---|---|---|
| Ordinary working day | 100% | 100% × 1.10 | 110% |
| Ordinary day, overtime (beyond 8 hrs) | 125% | 125% × 1.10 | 137.5% |
| Rest day or special non-working day | 130% | 130% × 1.10 | 143% |
| Rest day / special day, overtime | 169% | 169% × 1.10 | 185.9% |
| Regular holiday | 200% | 200% × 1.10 | 220% |
| Regular holiday, overtime | 260% | 260% × 1.10 | 286% |
Rest-day and special-day overtime base (169%) = 130% × 130%; regular-holiday overtime base (260%) = 200% × 130%. Worked example, regular holiday at night with overtime on a ₱100 basic hourly rate: ₱100 × 286% = ₱286 per OT hour. Source: DOLE Handbook on Workers' Statutory Monetary Benefits, Labor Code Arts. 86–87 & 93–94.
Night differential — frequently asked questions
- What is night differential in the Philippines?
- Night differential, also called night-shift differential, is a premium of at least 10% of the hourly rate paid for each hour an employee actually works between 10:00 PM and 6:00 AM. It is required by Article 86 of the Labor Code.
- How is night differential computed?
- Take the daily rate, divide by 8 to get the hourly rate, multiply by 10%, then multiply by the number of hours worked between 10:00 PM and 6:00 AM. For a ₱800 daily rate, that is ₱100 hourly × 10% × hours.
- Is night differential the same as overtime pay?
- No. Night differential is a separate 10% premium for the 10 PM–6 AM window, while overtime pay is for hours worked beyond eight in a day. If night hours are also overtime, both premiums apply and stack on top of the regular pay.
- Who is entitled to night differential?
- Rank-and-file employees who work between 10:00 PM and 6:00 AM are entitled. Article 82 of the Labor Code excludes managerial employees, field personnel, family members dependent on the employer, domestic helpers, and personal-service workers.
- Can an employer refuse to pay night differential?
- No. Night differential is a statutory minimum benefit under Article 86 that cannot be waived. Employers who fail to pay it may be liable for money claims before the Department of Labor and Employment (DOLE) or the NLRC.
- Does night differential apply on rest days and holidays?
- Yes. The 10% night differential is computed on whatever hourly rate applies to that work, so it stacks with rest-day, special-day, and regular-holiday premiums for hours falling between 10:00 PM and 6:00 AM.
- Is night differential taxable?
- Night-shift differential pay of minimum-wage earners is exempt from income tax under the TRAIN law (RA 10963). For employees above the minimum wage, night differential is part of taxable compensation.
- What is the order of computation when night differential combines with holiday and overtime pay?
- The DOLE Handbook applies the premiums multiplicatively in this order: the day-type premium first (e.g. 200% on a regular holiday), then overtime (+30% on a holiday or rest day, +25% on an ordinary day), then the 10% night differential last. For overtime on a regular holiday at night, that is 200% × 130% × 110% = 286% of the basic hourly rate per hour.
- How much is night differential for overtime worked on an ordinary day?
- Ordinary-day overtime is paid at 125% of the hourly rate (the regular wage plus the 25% overtime premium under Article 87). Apply the 10% night differential and night-shift overtime hours earn 137.5% of the basic hourly rate — that is 125% × 1.10.
Key terms
- Night-shift differential (NSD).
- The 10% premium on the hourly rate for each hour actually worked between 10:00 PM and 6:00 AM, required by Labor Code Article 86. It cannot be waived.
- Article 86.
- The Labor Code provision mandating night-shift differential of not less than 10% of the regular wage for the 10:00 PM–6:00 AM window.
- Hourly rate.
- Your daily rate divided by 8. Night differential, overtime, and holiday premiums are all computed from this figure.
- Premium pay.
- Additional compensation for work on a rest day or special non-working day under Articles 93–94 — distinct from, and stacking with, night differential.
- Overtime pay.
- Compensation under Article 87 for work beyond eight hours in a day: +25% on an ordinary day and +30% on a rest day or holiday. It compounds with the 10% night differential.
- Regular holiday.
- A national holiday (e.g. Araw ng Kagitingan, Independence Day) paid at 200% for the first eight hours; night hours on it earn 220% once the 10% differential is applied.
- Special non-working day.
- A 'no work, no pay' special day under DOLE proclamation; if worked, the first eight hours are paid at 130%, rising to 143% for night hours.
- Minimum-wage earner (MWE).
- A worker paid the regional statutory minimum wage. Under RA 10963 (TRAIN), an MWE's night-shift differential, overtime, holiday, and hazard pay are exempt from income tax.
Sources
- Labor Code of the Philippines, Article 86 — Night-Shift Differential (10% for 10:00 PM–6:00 AM).
- Labor Code of the Philippines, Article 82 — Coverage and exclusions for working-conditions benefits.
- Labor Code of the Philippines, Article 87 — Overtime work, which stacks with night differential.
- Department of Labor and Employment (DOLE) — Handbook on Workers' Statutory Monetary Benefits.
- Republic Act 10963 (TRAIN law) — night-differential pay of minimum-wage earners is tax-exempt.
- Estimates are for guidance only. Confirm your computation with DOLE.
Last reviewed: June 2026
Computing night differential for every graveyard shift by hand?
Orkids builds custom payroll systems that compute night differential, overtime, rest-day and holiday premiums, SSS, PhilHealth, Pag-IBIG, and BIR 2316 automatically — owned by your company, with no per-employee subscription.
See custom payroll →