Shift differential calculator

Work out the extra pay for night, weekend or other less popular shifts, as a flat amount or a percentage.

Shift differential calculatorBase hourly rate ($): 18Differential type: pctDifferential amount: 10Hours worked on…: 24🌙
In shortShift differential pay = differential hours × differential per hour. The differential is either a fixed amount (for example $2 an hour) or a percentage of the base rate (for example 10%).

Run the numbers

Percent (e.g. 10) or dollars (e.g. 2)

Enter your numbers and press Calculate.

How the math works

Differential per hour = base rate × percent ÷ 100, or the fixed dollar amount.

Premium = differential per hour × hours on differential shifts.

Total straight-time pay = base rate × all hours + premium. The average hourly rate is shown because, for non-exempt employees, premiums are usually included when the overtime rate is worked out.

A shift differential example

A care assistant earns $18 an hour and receives a 10% night differential. In one week she works 24 night hours and 16 day hours. The differential is $1.80 an hour, so the premium is $43.20. Straight-time pay is $18 × 40 + $43.20 = $763.20, an average of $19.08 an hour.

When to use it

Use it when you design a night or weekend premium, when you check a paycheck, or when you compare what a premium costs across a month of schedules.

A differential is usually set by company policy or a union contract rather than by federal law. If the employee is non-exempt, the differential generally also affects the rate used for overtime.

A second example

A warehouse pays a flat $2.50 an hour extra for weekend shifts. A picker earning $21 an hour works 30 weekend hours and 10 weekday hours, so choose the fixed dollar option and enter 2.50. The premium is $2.50 x 30 = $75.00, and straight-time pay is $21 x 40 + $75 = $915.00. The average hourly rate for the week is $22.88, the figure to start from if the picker also works overtime.

Making sense of the shift differential number

The premium line is what the differential adds on top of base pay, and the average hourly rate shows how much it lifts the whole week. Every hour you enter is treated as straight time, so if the week went over 40 hours, work out the overtime premium separately on the average rate. The tool cannot tell which hours qualify, so if your policy pays the premium only after 11 PM, enter just those hours, not the whole shift.

Where a shift differential usually goes wrong

Make it fit your workplace

Hospitals and care homesRun separate lines for evening, night and weekend premiums, since many facilities stack them when a night falls on a weekend.
Small retail storesA flat dollar amount for closing shifts is easier to explain to part-timers than a percentage that changes with each raise.
Quick winBefore raising a premium, test a small change on the shift that is hardest to fill. If sign-ups improve, you have a cheaper fix than raising pay across the board.

Shift differential: common questions

Is shift differential required by law?

Generally not under federal law. It is set by policy, contract or collective agreement. Check state and local rules.

Does the differential affect overtime?

For non-exempt employees, premiums are usually part of the regular rate used to calculate overtime. Use the overtime calculator together with this one.

Percent or flat amount?

A percentage grows with pay rates. A flat amount is simpler to explain. Both are common.

Which shifts get a differential?

Commonly nights, weekends, holidays or split shifts. Write the rule down so it is applied consistently.

Do I pay the differential on PTO or holiday hours?

Only if your written policy says so. Many employers pay PTO at the base rate, while others pay the rate the person would have earned on the scheduled night shift. State the rule so a night worker taking a vacation day knows which rate will show on the stub.

How should a differential appear on a pay stub?

Most payroll systems list it as its own earnings line, such as ‘Night diff 24.00 h at $1.80’. A separate line lets employees check that only qualifying hours got the premium, and it makes the premium easy to include in the overtime regular rate.

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Skip the manual totals

Instead of adding up timesheets before you open the shift differential calculator, let EZTime total employee hours. Book a demo to see it with your team.

General information and an estimate only. It is not legal, payroll, tax or financial advice. Rules vary by state and city. Check important results with a qualified professional.