If you have worked in a call center, chances are you would be aware of the night differential and how much it means to everyone. For starters, night differential is the amount of money you get for working in late hours specifically between the hours of 10pm and 6am. I am unsure of other industries but the BPO industry is well off with this one. In this article, we will be teaching you how to compute for your night differential.
In call centers, having a night differential is truly a blessing since you will be saying goodbye to the taxes and deductions if you have a full night differential (ND). Some companies have an hourly rate of the ND while some give out the full rate once your working hours touch the range to where the night differential applies. Some companies offer 10% of an employee’s salary while some offer 20%.
Read: How to compute for overtime pay
The computation also depends on the kind of day that the employee reported. It goes as follows:
Day Type | Formula/Computation |
Ordinary Day | Hourly Rate x 10% (.10) x Hours Worked |
Rest Day | Hourly Rate x 130% x 10% (.10) x Hours Worked |
Special Holiday | Hourly Rate x 130% x 10% (.10) x Hours Worked |
Special Holiday + Rest Day | Hourly Rate x 150% x 10% (.10) x Hours Worked |
Regular Holiday | Hourly Rate x 200% x 10% (.10) x Hours Worked |
Regular Holiday + Rest Day | Hourly Rate x 260% x 10% (.10) x Hours Worked |
Double Holiday | Hourly Rate x 330% x 10% (.10) x Hours Worked |
Double Holiday + Rest Day | Hourly Rate x 390% x 10% (.10) x Hours Worked |
Let’s say that your hourly rate as an employee is P57. 00 and they report to work during the hours covered by the night differential premium; your schedule is from 10:00pm – 6:00 am. Here is how to compute it:
Day Type | Fomula/Computation (Sample) | ND Premium (Sample) |
Ordinary Day | Hourly Rate (P57. 00) x (.10) x 8 | = P45. 60 |
Rest Day | Hourly Rate (P57. 00) x 1.30 x (.10) x 8 | = P59. 28 |
Special Holiday | Hourly Rate (P57. 00) x 1.30 x (.10) x 8 | = P59. 28 |
Special Holiday + Rest Day | Hourly Rate (P57. 00) x 1.50 x (.10) x 8 | = P68. 40 |
Regular Holiday | Hourly Rate (P57. 00) x 2 x (.10) x 8 | = P91. 20 |
Regular Holiday + Rest Day | Hourly Rate (P57. 00) x 2.60 x (.10) x 8 | = P118. 56 |
Double Holiday | Hourly Rate (P57. 00) x 3.30 x (.10) x 8 | = P150. 48 |
Double Holiday + Rest Day | Hourly Rate (P57. 00) x 3.90 x (.10) x 8 | = P177. 84 |
Take note that not all companies pay hourly for the night differential, some companies pay in full even if the employees do not work the 10:00pm – 6:00 am shift; in some companies even if the employees’ schedule lands between 10:00pm – 6:00am, they pay full. It depends on the companies’ policies and rules.