There are instances where employees stay late in their office to work, it could be because of a deadline or it’s just a requirement for the employee to work more hours than scheduled shift. This would result to an overtime. Employee would be paid the overtime rate for the excess hours worked. (When an employee is required to work beyond the normal 8 hours, they are entitled to receive Overtime Pay)
If the employee’s overtime reaches overnight or the night differential time frame, the night differential would affect the overtime rate of the employee.
The Night Differential Overtime pay rates depend upon the day the work is performed, based on the government guidelines it is as follows:
| Day Type | Formula |
| Ordinary Day | Hourly Rate x 125% x Night Differential |
| Rest Day | Hourly Rate x 169% x Night Differential |
| Special Holiday | Hourly Rate x 169% x Night Differential |
| Special Holiday + Rest Day | Hourly Rate x 195% x Night Differential |
| Regular Holiday | Hourly Rate x 260% x Night Differential |
| Regular Holiday + Rest Day | Hourly Rate x 338% x Night Differential |
| Double Holiday | Hourly Rate x 390% x Night Differential |
| Double Holiday + Rest Day | Hourly Rate x 507% x Night Differential |
Let’s take Php 57.00 as your Hourly Rate, here’s how to compute for the Night Differential Overtime Pay:
| Day Type | Sample Computation | Sample ND Overtime Pay |
| Ordinary Day | Php 57.00 x 1.25 x .10 | 78.375 |
| Rest Day | Php 57.00 x 1.69 x .10 | 105.963 |
| Special Holiday | Php 57.00 x 1.69 x .10 | 105.963 |
| Special Holiday + Rest Day | Php 57.00 x 1.95 x .10 | 122.265 |
| Regular Holiday | Php 57.00 x 2.6 x .10 | 163.02 |
| Regular Holiday + Rest Day | Php 57.00 x 3.38 x .10 | 211.926 |
| Double Holiday | Php 57.00 x 3.9 x .10 | 244.53 |
| Double Holiday + Rest Day | Php 57.00 x 5.07 x .10 | 317.889 |
With PayrollHero, your employee’s ND Overtime pay is automatically computed for you! These rates are set up by default for your account, but you can adjust them if desired via the Rates page. To learn more about this view How to Set up Rates?
For questions and suggestions, feel free to contact us at support@payrollhero.com.