Night differential computation in the Philippines

Night differential is 10% of the hourly rate for each hour worked from 10 PM to 6 AM. How it stacks with overtime and holidays, with a 12-hour guard shift.

Updated · 6 min read · Figures computed with the Payslip.ph payroll engine on the 2026 rules

Every hour worked between 10 PM and 6 AM earns at least 10% more than the same hour worked by day. The night shift differential is simple on an ordinary night. It gets confusing when the night hour is also overtime, a rest day or a holiday, so here is how the premiums stack, in pesos.

In short
  • Night differential is 10% of the hourly rate for each hour worked from 10 PM to 6 AM.
  • It is computed on the rate for that hour, so it stacks with overtime, rest day and holiday premiums.
  • A twelve-hour night shift from 6 PM to 6 AM has eight night hours: four regular and four overtime.
Night differential per hour = hourly rate for that hour × 10%

Night hour rates by type of day

With a ₱755.00 daily rate the ordinary hourly rate is ₱94.38. The table shows what one night hour pays on each kind of day.

Night hour onRatePay per hour
Ordinary day110%₱103.82
Ordinary day, overtime137.5%₱129.77
Rest day or special day143%₱134.96
Rest day or special day, overtime185.9%₱175.44
Regular holiday220%₱207.63
Regular holiday, overtime286%₱269.92
Rate = the day's rate × 110%. Hourly rate = daily rate ÷ 8.

Example: a twelve-hour night shift

Security guards usually work twelve-hour shifts. The night guard on a 6 PM to 6 AM shift works eight regular hours, from 6 PM to 2 AM, and four overtime hours, from 2 AM to 6 AM. Eight of the twelve hours fall between 10 PM and 6 AM: four regular and four overtime.

Night shift on an ordinary day, ₱755.00 daily rate
8 regular hours, 6 PM to 2 AM
₱755.00
4 overtime hours at 125%, 2 AM to 6 AM
₱471.88
Night differential, 4 regular hours from 10 PM (10% of 100%)
₱37.75
Night differential, 4 overtime hours (10% of 125%)
₱47.19
Pay for the shift
₱1,311.82

Each line is rounded once to the centavo, the way Payslip.ph computes it.

Day guards get overtime but no night differential
The partner on the 6 AM to 6 PM shift has the same four overtime hours but no night hours, so their pay is the same as the night guard's minus the night differential lines.

Who is entitled

All employees are covered, except:

  • managerial employees, officers and staff whose duties are managerial in character
  • field personnel and others whose time and performance cannot be supervised
  • workers of retail and service businesses regularly employing not more than five workers
  • kasambahay, who are covered by the Batas Kasambahay, and government employees

For the rest of the overtime rules, see how to compute overtime pay. For holiday rates, see holiday pay computation.

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Common questions

What is the night differential rate in the Philippines?

At least 10% of the employee's regular hourly rate for each hour worked between 10 PM and 6 AM. Companies may pay more by policy or agreement.

Is night differential computed on overtime?

Yes. For a night hour that is also overtime, the 10% is taken on the overtime hourly rate, so an ordinary-day night overtime hour pays 137.5% of the hourly rate.

Who is not entitled to night differential?

Managerial employees, field personnel and others whose time cannot be checked, government employees, and workers of retail and service businesses regularly employing not more than five workers. Kasambahay are covered by their own law instead.

Is night differential taxable?

Yes, it is part of taxable compensation, except for minimum wage earners, whose night differential, overtime and holiday pay are all exempt.

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