The rule in one line
Article 86 of the Labor Code gives a night shift differential of at least 10% of your regular wage for each hour worked between 10:00 pm and 6:00 am. When the night hour is also a rest day, holiday or overtime hour, the 10% is computed on that higher hourly rate.
Example 1: 8-hour night shift, ordinary day (₱755 a day)
- Hourly rate: ₱755 ÷ 8 = ₱94.375.
- Night differential per hour: 10% × ₱94.375 = ₱9.44.
- 8 night hours: ₱75.50 extra.
- Total for the shift: ₱830.50.
Example 2: plus 2 hours overtime at night
Overtime hours pay 125% of the hourly rate (₱117.97), and the night differential on those hours is 10% of that (₱11.80). For 8 regular + 2 OT hours, all at night, the total is ₱1,090.03, of which ₱99.09 is night differential.
8 night hours on different days (₱755 a day)
| Day | Base pay for 8 hours | Night differential | Total |
|---|---|---|---|
| Ordinary working day | ₱755.00 | ₱75.50 | ₱830.50 |
| Rest day | ₱981.50 | ₱98.15 | ₱1,079.65 |
| Special (non-working) day | ₱981.50 | ₱98.15 | ₱1,079.65 |
| Regular holiday | ₱1,510.00 | ₱151.00 | ₱1,661.00 |
| Double regular holiday | ₱2,265.00 | ₱226.50 | ₱2,491.50 |
Who gets it?
All rank-and-file employees, except those in government, retail and service businesses regularly employing not more than 5 workers, managerial employees, field personnel and a few others listed in the Labor Code. Many BPO and hospital employers pay more than 10% — the law sets the minimum.
Tip: night differential is part of taxable compensation, but if you are a minimum wage earner, your holiday pay, overtime pay and night differential are tax-exempt.
Shifts that cross midnight
Only the hours between 10pm and 6am earn night differential. A 6pm–3am shift with a one-hour break, for example, has five night hours (10pm to 3am) if the break is taken before 10pm. If the shift runs into a holiday after midnight, the hours after 12:00 am are paid at the holiday rate, with the 10% computed on that rate. Check your timesheet and payslip so the night hours match.
Employees in BPOs often have rest days that fall on weekdays — the rest day premium (130%) and the night differential can both apply on the same shift.
FAQ
How do I compute night differential?
Hourly rate × 10% × hours worked between 10pm and 6am. On a holiday or overtime, use the holiday or overtime hourly rate.
How much is night differential for ₱755 a day?
₱9.44 per hour, or ₱75.50 for a full 8-hour night shift on an ordinary day.
Is night differential taxable?
Yes for most employees, as part of compensation. Minimum wage earners are exempt from income tax on their night differential, overtime and holiday pay.
Sources (checked 5 November 2026): Labor Code of the Philippines Arts. 86 (night shift differential, 10%), 87 (overtime, +25% / +30%), 93 (rest day and special day premium) and 94 (regular holiday pay, 200%); DOLE Handbook on Workers’ Statutory Monetary Benefits and DOLE labor advisories on holiday pay rules (dole.gov.ph); Proclamation No. 1006, s. 2025 — 2026 regular holidays and special (non-working) days (lawphil.net); Wage Order No. NCR-28 — ₱755 daily minimum wage for non-agriculture workers in Metro Manila from 26 September 2026 (NWPC/RTWPB-NCR).