Shift Differential Calculator
Extra pay for nights, weekends and holidays, worked out either as a percentage of your base rate or as a flat amount per hour.
Common differentials, 8-hour shift
| Base rate | Differential | Shift rate | Extra per shift | Overtime rate |
|---|---|---|---|---|
| $18.00 | 10% | $19.80 | $14.40 | $29.70 |
| $22.00 | 10% | $24.20 | $17.60 | $36.30 |
| $22.00 | 15% | $25.30 | $26.40 | $37.95 |
| $28.00 | 15% | $32.20 | $33.60 | $48.30 |
| $35.00 | 20% | $42.00 | $56.00 | $63.00 |
The last column is time-and-a-half on the shift rate, which is how the Fair Labor Standards Act requires it to be worked out.
Questions
- How is shift differential calculated?
- Two ways, and employers use both. As a percentage: your base rate times the differential percent, added to the base. At $22 an hour with a 10% differential, that is $2.20 extra, so $24.20 an hour. As a flat rate: a fixed amount per hour, say $2.50, regardless of what you earn.
- Does shift differential count towards overtime?
- Yes, and this is the part people lose money on. Under the Fair Labor Standards Act the differential is part of your regular rate, so overtime is calculated on the higher rate, not your base. At $22 base with a $2.20 differential, time-and-a-half is $36.30 an hour, not $33.
- Is shift differential required by law?
- No. There is no federal requirement to pay extra for nights, weekends or holidays. It is set by your employer or your union contract. What is required is that once it is paid, it counts towards your regular rate for overtime.
- Is shift differential taxed differently?
- No. It is ordinary wages — taxed and withheld exactly like the rest of your pay, with federal withholding, Social Security and Medicare all applying normally.