I’ve been asked not a few times regarding Night Differential (aka Night Shift Differential or NSD) – its coverage and amount and/or percentage. Some have sought clarification because they understood, albeit in a different way, that any work done in the evening would be paid a corresponding fixed amount per hour of work until midnight.
There was a bill filed in the House of Representatives more than a year ago, proposing a change in the hours covered by the NSD to start 2 hours earlier at 8:00 PM. However, it seems that it never got off the ground. So the existing schedule, as provided for by the Labor Code, shall remain:
ART. 86. 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.
However there are restrictions as well. Not everyone who works from 10:00 PM to 6:00 AM are entitled to NSD. An example would be managerial employees.
Likewise, NSD may not be paid for the full 8 hours, especially for those whose work schedule is during that time. This may include, but not be limited to, those working in the BPO (Call Center) industry. As such only 7 hours may be covered or credited as NSD – that’s because the remaining 1 hour is used for lunch break (or meal period) and is non-compensable.