What is shift differential?
A shift differential is extra compensation added to a base hourly rate for certain shifts according to an employer policy, contract or other applicable arrangement. Not every shift receives one.
Dollar shift differential
Dollar mode adds a fixed amount per hour to the base rate.
Percentage shift differential
Percentage mode calculates the premium per hour as a percentage of the base hourly rate.
Shift differential vs overtime
Shift differential is a premium tied to a shift or pay policy. Overtime pay is based on overtime hours and rules. They are different calculations, and this page does not determine entitlement to either one.
Night shift differential example
If a night shift pays $2 extra per hour on top of a $20 base rate, the adjusted rate is $22/hour. For an 8-hour shift, base pay is $160, differential pay is $16 and total shift pay is $176.
Shift Differential Calculator FAQ
How do I calculate shift differential?
Add the dollar premium to the base rate, or calculate the percentage premium and add it to the base rate.
What is a 10% shift differential?
It is 10% of the base hourly rate. At $20/hour, 10% is $2/hour.
What is $2/hour shift differential?
It means $2 extra per eligible shift hour. For 8 hours, the differential pay is $16.
Is shift differential the same as overtime?
No. Shift differential is a shift or policy premium; overtime is based on overtime hours and rules.
Does every night shift receive shift differential?
No. It depends on employer policy, contract or other applicable arrangement.
Does this include taxes?
No. Results are gross pay estimates before taxes and deductions.