How to Exclude Night Differential Pay in Payroll

Night differential is an additional pay given to employees who work during night hours, typically between 10 PM and 6 AM. This pay is meant to compensate for the inconvenience and potential health impacts of working during hours that are outside the typical daytime schedule. The night differential is often calculated as a percentage of an employee’s regular hourly wage, with the percentage varying depending on company policies or local labor laws.

As per the Department of Labor and Employment's handbook, Worker's Statutory Monetary Benefits Handbook 2024 the Night Differential Rate is at 10%

However, some companies have internal policies that exclude employees from qualifying for overtime or night differential pay. 

In Payroll, you can create a separate Overtime Table to exclude this payment for certain employees and set the Night Differential Rate to 'Zero'. How to Create OT Tables? / How to Edit OT Table Names.

This will prevent the system from computing the employee's Night Differential hours worked.

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