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Night Shift Allowance Formula:
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Night Shift Allowance is additional compensation for employees working during night hours in the Philippines. It's calculated based on the basic salary and the number of hours worked during night shift.
The calculator uses the standard formula:
Where:
Explanation: The formula first calculates the hourly rate (basic divided by 8), then applies the 10% night differential, and multiplies by the number of night shift hours worked.
Details: Night shift allowance compensates employees for the inconvenience and health impacts of working during night hours. It's mandated by Philippine labor laws for employees working between 10 PM and 6 AM.
Tips: Enter your basic daily salary in PHP and the number of night shift hours worked. Both values must be positive numbers.
Q1: Is night shift allowance mandatory in the Philippines?
A: Yes, under Article 86 of the Philippine Labor Code, employees working between 10 PM and 6 AM are entitled to a night shift differential of at least 10% of their regular wage.
Q2: How is the basic salary determined?
A: The basic salary is the employee's regular daily wage excluding overtime pay, holiday pay, bonuses, and other allowances.
Q3: Are there exceptions to night shift allowance?
A: Some industries or positions may have different arrangements, but generally all employees working night shifts are entitled to this allowance.
Q4: Can the night shift differential rate be higher than 10%?
A: Yes, 10% is the minimum required by law. Companies may offer higher rates as part of their compensation package.
Q5: Is night shift allowance taxable?
A: Yes, night shift differential pay is considered part of regular earnings and is subject to income tax and other mandatory deductions.