For a flat premium, differential pay = qualifying hours × extra dollars per hour. For a percentage premium, multiply the base hourly rate by the percentage first, then multiply that premium by qualifying hours.
01Flat-dollar differential
One 40-hour week with mixed shifts
- Base wages: 40 × $22$880.00
- Differential: 24 × $2.50$60.00
- Estimated straight-time gross$940.00
- Rate during qualifying shift$24.50/hour
02Percentage differential
| Differential | Premium/hour | Shift rate | Extra pay |
|---|---|---|---|
| 5% | $1.10 | $23.10 | $8.80 |
| 10% | $2.20 | $24.20 | $17.60 |
| 15% | $3.30 | $25.30 | $26.40 |
03Find the blended rate
For a straight-time comparison, divide total wages by total hours. In the $940 example above, $940 ÷ 40 = $23.50 per hour. This blended figure is useful for comparing the week, but it is not by itself a complete overtime calculation.
04Overtime changes the method
The Department of Labor explains that shift differential pay must generally be included when determining the regular rate for covered nonexempt employees. Its healthcare example combines base wages and a $1 evening differential, divides total straight-time compensation by total hours and then calculates the additional overtime premium from that regular rate.
The Shift Differential Calculator estimates stated straight-time wages and premiums. If the week includes overtime, multiple rates, bonuses or an alternative statutory method, use the applicable official regular-rate calculation or qualified payroll advice.
05Which hours qualify?
The premium may apply to evenings, nights, weekends, holidays, undesirable assignments or another defined window. Federal law does not generally require extra pay merely because work occurs at night or on a weekend; the policy, agreement, contract or other applicable rule defines eligibility.
Calculate flat or percentage shift pay
Enter base-shift hours and differential hours separately for a transparent breakdown.
Common questions
What is a 10% shift differential on $20 per hour?
The premium is $2 per qualifying hour, making the shift rate $22 per hour before any overtime calculation.
Is night shift differential required by federal law?
No general FLSA rule requires extra pay for night or weekend work. A premium may come from an employer policy, contract, collective bargaining agreement or another applicable rule.
Does shift differential affect overtime?
It can. The Department of Labor states that shift differential pay must generally be included when determining the regular rate used for overtime.