Night Differential is an additional amount paid to an employee who works at night between 10 p.m. and 6 a.m. This pay is compulsory as provided by the Labor Code of Philippines. Article 86 of the Labor Code stipulates that “every employee is entitled to a night shift differential or night shift pay of not less than ten percent (10%) of his regular wage for each hour of work performed between 10 p.m. and 6 a.m.”
A worker who earns P100/ hour for 8 hours a day is entitled at least an additional P80 per day when working on a night shift 10PM -6AM). Because most workers in the call center industry work within those hours, they are given night differential pays. Workers and agents that are scheduled in the morning are not entitled to night differential pay. Moreover, not all workers are entitled to night shift differential pay including government employees, domestic helpers (personal assistants), managerial employees, field personnel (researchers) and retail and service employees (waiters, GROs).
The amount of the night differential given will ultimately depend on the company. It could be at least 10% of the employee’s hourly rate or higher. Although this is mandated by law, some call center companies capitalize on this to make this pay an extra incentive. For instance, some companies compute the night differential at 15% to motivate night shift agents to come work late at night.
The night shift differential is given to employees who work at night because of the extra effort and maybe danger involved in working on night schedules. For the former, this pertains for the need of the worker to change one’s normal work life to be able to work at night. This may also mean depriving oneself of attending or socializing with families and friends at are awake in the day. The latter on the other hand, refers to the greater risk of going to work at night. There are less people at night and there are more night time predators like snatchers and thieves that operate in the dark. The night shift differential is a pay that is basically used to complement this effort and risks.