How to Compute for Night Differential?

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. (Source: DOLE)

The computation will depend on what kind of day they reported for work:Screen Shot 2015-09-24 at 8.46.30 AM

Let’s say that your employee’s hourly rate is Php 57.00 and they report for work during the hours covered by the Night Differential premium. Here’s how to compute it:

Screen Shot 2015-09-24 at 8.46.55 AM

With PayrollHero this computation is done automatically for you. For more details on how to configure the Night Differential on your PayrollHero account view the following article: How to Set the Night Differential Rate?