Night differential

Government employees live under a different statute and a wider window. Ignore that table unless you are hiring a civil servant.

How it is measured

Take the regular hourly rate. For a monthly-paid employee the usual working conversion is monthly basic ÷ (working days in the year ÷ 12 × 8), or the company’s documented equivalent. Then:

NSD for the day = hourly rate × 0.10 × hours inside 10:00 p.m.-6:00 a.m.

A shift from 8:00 p.m. to 4:00 a.m. earns NSD on six hours (10:00 p.m.-4:00 a.m.), not eight. Hours from 6:00 p.m. to 9:59 p.m. are ordinary hours for this article. Overtime, rest-day, and holiday premiums stack. Courts have treated them as separate. A night hour on a regular holiday is not “either 10% or 100%.” It is both, in the order payroll software is built to apply.

Example: ₱48,000 monthly basic. Use ₱250/hour as the working rate for the illustration. Four hours a night inside the window, 20 nights a month: 4 × 0.10 × ₱250 × 20 = ₱2,000 a month, ₱24,000 a year, before 13th month on the basic. A founder who bought “U.S. hours” at a dayside peso quote is ₱2,000 a month short on this line alone.

How it differs

Overnight coverage is why you hired the hours. Night differential is what those hours cost if they land after ten. Overtime is work beyond eight hours. You can owe both on the same clock. A compressed workweek does not erase Article 86. If the hour is inside the window, the 10% attaches.

Common errors

Paying NSD on the whole shift because the shift “is nights.” Applying it to 6:00 p.m.-10:00 p.m. because that feels late. Dropping it for probationary staff. Rank-and-file status, not tenure, is the usual coverage question. Offsetting it against a “night allowance” that is smaller than 10%. The statute is a floor.