How to compute night differential in the Philippines, step by step

Night differential computation, step by step: 10% more per hour from 10 PM to 6 AM, with worked examples for a regular day, rest day, holiday and overtime.

6 min read. Updated 2026-10-07. By Catalyst Outsourcing.

Work between 10 PM and 6 AM and the law says you're owed a night shift differential of at least 10% of your regular wage for each of those hours. Article 86 of the Labor Code sets it, and DOLE's handbook gives the rates for rest days, holidays and overtime. Here's how to compute it on a regular day, a rest day and a holiday, with worked examples, from the Labor Code and the handbook, read on 7 October 2026.

This guide explains the law for employees in the Philippines. It's general information and isn't legal advice. If you have a dispute with your employer, you can call DOLE Hotline 1349.

How night differential is added to your pay

Article 86 says: "Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o'clock in the evening and six o'clock in the morning."

DOLE's handbook says the extra 10% is "of the corresponding hourly rate", so on a rest day or holiday it's 10% of that day's higher rate, and DOLE multiplies the day's rate by 1.1.

Only the hours you work between 10 PM and 6 AM count. Say you work from 6 PM to 3 AM with a one-hour meal break at 9 PM: that's 8 hours of work, and the 5 hours from 10 PM to 3 AM are night hours.

Article 90 says the "regular wage" used for this "shall include the cash wage only, without deduction on account of facilities provided by the employer".

How to compute night differential on a regular day

Find your hourly rate. If you're paid by the day, divide your daily wage by 8, the normal hours of work under Article 83.
Count the hours you worked between 10 PM and 6 AM.
Multiply: hourly rate x 10% x night hours.

Example: your daily wage is PHP 800, so PHP 800 / 8 = PHP 100 an hour. You work 5 hours between 10 PM and 6 AM. PHP 100 x 0.1 x 5 = PHP 50 in night differential, and your day comes to PHP 800 + PHP 50 = PHP 850.

Night differential on a rest day or holiday

DOLE's handbook multiplies the day's rate by 1.1 for night hours:

Rest day: 1.3 x 1.1 = 1.43, or 143%
Special non-working day: 1.3 x 1.1 = 1.43, or 143%
Special non-working day on your rest day: 1.5 x 1.1 = 1.65, or 165%
Regular holiday: 2 x 1.1 = 2.2, or 220%
Regular holiday on your rest day: 2.6 x 1.1 = 2.86, or 286%

Example: at PHP 100 an hour, each night hour on a rest day pays PHP 100 x 1.3 x 1.1 = PHP 143. On a regular holiday, each night hour pays PHP 100 x 2 x 1.1 = PHP 220.

For the dates, our holiday pay guide lists every 2026 regular holiday and special day, with the pay rate for each kind of day.

Night differential with overtime

When night hours are also overtime, DOLE's handbook stacks the rates. On an ordinary day it's 1 x 1.1 x 1.25 = 1.375, or 137.5% of your hourly rate. On a rest day it's 1.3 x 1.1 x 1.3 = 1.859, or 185.9%.

Example: at PHP 100 an hour, one overtime hour at 1 AM on an ordinary day pays PHP 100 x 1.1 x 1.25 = PHP 137.50.

If your extra hours fall in the daytime, our overtime pay guide has the plain overtime rates for every kind of day.

Who doesn't get night differential

DOLE's handbook leaves out:

Government employees
Employees of retail and service establishments regularly employing not more than five workers
Kasambahay, and persons in the personal service of another
Managerial employees, and officers or members of the managerial staff, as the handbook defines them
Field personnel, and those whose time and performance the employer doesn't supervise

On our reading, this is an employee rule: Article 86 opens with "Every employee". If you freelance or work as an independent contractor, check what your contract says about night hours.

What to do if your night differential looks short

Find the night hours and the rate on your payslip.
Redo the math with the steps above and the multiplier for that day.
Ask HR or payroll in writing to explain any gap, and keep a copy.
If it isn't fixed, DOLE's handbook says to call the DOLE Hotline or the DOLE regional office for your workplace.

Night hours often come with overtime and holidays. Read how overtime pay is computed and holiday pay for 2026, and check the daily wage for your region on our minimum wage tool. You may also have five days of service incentive leave a year. Looking for a new role? Browse remote jobs. It's free to apply.

Questions

How is night differential computed in the Philippines?

Multiply your hourly rate by 10% for each hour worked between 10 PM and 6 AM. On a rest day or holiday, DOLE multiplies that day's rate by 1.1.

What time does night differential start?

10 PM. Article 86 covers work "between ten o'clock in the evening and six o'clock in the morning".

Is night differential always 10%?

The law sets a floor. Article 86 says "not less than ten percent", so an employer can pay more.

Does night differential apply on a holiday?

Yes. DOLE's handbook rate for night work on a regular holiday is 2 x 1.1 = 2.2, or 220% of the hourly rate.

Who isn't entitled to night differential?

Government employees, workers at retail and service establishments with no more than five workers, kasambahay, managerial staff and unsupervised field personnel, DOLE's handbook says.

Sources

DOLE, Labor Code of the Philippines, as amended and renumbered, 2022 edition, Articles 83, 86 and 90, https://bwc.dole.gov.ph/wp-content/uploads/2025/08/Labor-Code-of-the-Philippines.pdf, read 7 October 2026
DOLE Bureau of Working Conditions, Handbook on Workers' Statutory Monetary Benefits, 2024 Edition, https://bwc.dole.gov.ph/wp-content/uploads/2024/10/Workers-Statutory-Monetary-Benefits-Handbook-2024-Edition.pdf, read 7 October 2026