Night differential pay is an additional amount of pay that federal employees receive for working during the night. SHRM Online resource "How to Calculate Overtime Rates for Shift Differentials."). Just in case you need a simple salary calculator, that works out to be approximately $36.77 an hour. Understanding Homeowners Insurance Premiums, Guide to Homeowners Insurance Deductibles, Best Pet Insurance for Pre-existing Conditions, What to Look for in a Pet Insurance Company, Marcus by Goldman Sachs Personal Loans Review, The Best Way to Get a Loan With Zero Credit. Imagine working on a difficult project for a difficult customer. An effective practice used by many U.S. employers is using shift differentialspay premiums to compensate employees for working shifts other than regular weekday hours. Minimum Wages Are On the Rise in Several States. Your session has expired. What is the average shift differential for nurses? If your company is open during the day, but only late at night, you should consider applying for work. For example, if an employee normally earns $10 per hour, and the night shift differential is 10%, the employee would earn $11 per hour for working the night shift. What are the Different Types of Nurse Bonuses? Night work does not have to be compensated under the Fair Labor Standards Act (FLSA). It may be beneficial for businesses to encourage employees to work late hours, but keep in mind that this is subject to change over time. Think of restaurant workers who might be both bartenders and waiters. Shift differential pay differs from the basic pay that night shift workers receive. For example, your overnight security guard, who always works 10 p.m. to 6 a.m., earns night pay. I have about 7 plus years experience as an RN, some Progressive care, some Med Surg, some outpatient. Payment for on-call is initiated in PeopleSoft's Time & Labor process using the appropriate time reporting code. Paying shift differentials as a separate salary supplement or cash bonus avoids these problems and allows for variation in the payment of premiums as shifts change. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Scott and Renee are taxed the same way even though they earned $600 in different ways. Work on weekends is usually done between the hours of 10 a.m. and 8 p.m. Melanies gross pay for the shift is $345 ($43.13 x 8 hours). Now you can calculate the blended overtime rate by multiplying the average hourly rate by 1.5. The estimated total pay for a RN, Night Shift is $120,457 per year in the United States area, with an average salary of $110,802 per year. Extra pay for working night shifts is a matter of agreement between the employer and the employee (or the employee's representative). var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The Wage Grade (WG) blue-collar pay schedule affects 10% of total federal non-postal employment. The third shift consistently is paid at a slightly higher rate than second shift. Want to make a difference in someone's life? Shift differential refers to additional compensation for employees who work outside their normal work hours. It's going to vary based on facility and state but some of the shift differentials I remember seeing look something like: Nursing Evenings Shift Differential: $1-$3 Nursing Night Shift Differential: $1-$5 Nursing Weekend Shift Differential: $1-$4 . The second shift differential shall be one dollar and fifty cents ($1.50) per hour in addition to the hourly rate of pay prescribed for the employee's . They both only work 40 hours a week so (160 hours a month). Providing premiums within base salary compounds the costs of regular salary increases, incentive payouts and other benefit costs. Nursing Evenings Shift Differential: $1-$3, Nursing Weekend Shift Differential: $1-$4. All rights reserved. Night shifts currently pay an extra $5.50 per hour. Assumptions based on our fictional facility policy: Explaination of Example 1Jane would get her base pay for the 12-hour shift which would be $360.Her facilities evening shift starts at 3pm so she would start getting an additional $1.00 an hour starting from 3pm to 7pm which would be an extra $4 for the shift. For these 50 hours worked, you would owe the employee $565. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Overview: What is shift differential? Employees will receive either an absolute increase in pay per hour or additional money calculated as a percent of base pay in exchange for working graveyard shift hours. Night shift differential is a part basic pay. This generally means work scheduled before the beginning of the administrative workweek. Your business may benefit from incentivizing employees to work late hours, but be sure to have a clear and consistent policy to handle it. In this role, you have an opportunity to leave a lasting . } Overtime pay must be calculated as 1.5 times your employees hourly pay, including shift differential pay. Night shift differential laws are not required by private employers in the United States. Although the FLSA specifies that covered nonexempt workers must be paid not less than the regular rate of pay for work completed more than 40 hours per week, it also specifies that they must be paid not less than half that rate. Clinical Nurse Weekend Option premium is a flat rate in addition to shift differential and Clinical Nurse Weekend premium amounts. Shift Differential Pay Practices Survey, October 2010, A prevailing rate employee regularly assigned to a night shift will continue to receive his or her regular night shift differential during a temporary assignment to the day shift or to another night shift with a lower differential. Technically speaking, a shift differential is just one type of "differential pay." Differential pay is defined as a situation in which a worker makes more than they normally do for taking on additional work or work that other employees don't want to complete. Benefits are average. Shift differential pay incentivizes employees to pick up shifts at irregular times of day. Now youre down to the final week, and theres no way you can get everything done without some people working through the night. Night shift differential means the differential paid to a FWS employee when the majority of regularly scheduled non-overtime hours worked fall between 3 p.m. and 8 a.m. local time, and is computed as a percentage of the employee's rate of basic pay. In addition to the financial burden, the pay differential can also lead to feelings of devaluation and invisibility. Employees who work on a second (a shift that begins at 2:30 p.m. or later) are paid night shift premium for all hours worked on that scheduled shift only. Read on to learn the benefits of each shift to help you decide which is right for you. Employees will receive either an absolute increase in pay. Based on just the night shift differential alone John will make $800 (160hrs x$5) more a month than Jane. A company will calculate blended salaries for its employees working at multiple pay levels in addition to calculating pay ranges. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Nursing is not the only job that may offer shift differentials. In fact, this card is so good that our experts even use it personally. In nursing, there may be extra shift differentials calculated for taking on extra responsibilities as well. Some employers also provide shift bonuses, which are a type of shift allowance that typically increases the base salary for Regular Employees working shifts. Melanies gross pay before overtime is $230 ($180 cooking + $50 cleaning). (To learn more, see the If you decide to use differential pay for night shift work, there are a few special situations to keep in mind: Lets work through an example of night differential. by Ryan Lasker | Shift differential premiums vary depending on a number of factors, including (See 5 U.S.C. Examples of night shift are 11 p.m. to 11:30 a.m.; midnight to 8 a.m., etc. You can choose whichever hours and pay differential you think works for your company. Renee, who works at the same company, also earned $600. var currentUrl = window.location.href.toLowerCase(); might have different shift differential payments than nonunion jobs. Night shift premium is paid at 7% times the employee's hourly rate of pay times each hour worked on the normal scheduled hours of the second shift. While we strive for accuracy we cannot guarantee the information will be accurate as of the time you look at it. Night shift differential pay is an additional pay given to employees who work during a graveyard shift. Employees who work at night are entitled to pay for that work at their basic pay rate as well as a night pay differential equal to 10% of their basic pay rate (5 CFR 550.121(a)). The government does not pay the differential per hour worked in those time periods. NOC shift times vary depending on your employer, position, and department. Night Shift: Any work period which includes four or more consecutive hours between 11 p.m. and 7 a.m. . Unfortunately, I have heard of hospitals mandating nursing staff to stay extra if they cant find coverage. The Importance Of Job Descriptions In Person-Based Pay Systems, Manny Pacquiao: Boxer Businessman And Philanthropist, A Career In Sound Recording: The Technical Skill And Artistic Sensibility You Need To Succeed, Why Journalism Is A Good Career Choice In India, The Highest-Paying Careers To Consider In 2020, The Pros And Cons Of A Career As A Computer Graphic Programmer, Why A Career In Web Development Might Be Right For You, Obstetrics: A Rewarding And Challenging Career, How To Find Out Your Federal Career Wages, 5 Reasons To Use CareerBuilder For Your Job Search. Your actual shift differential rate is going to vary a lot based on the facility and what state youre in. Night shift differential pay applies to employees who don't typically work night shifts. Of course, some jobs have always needed to support shift workers and operate 24 hours a day, seven days a week. Every day, our employees help us to continue our mission of delivering high-quality care and being a trusted leader. Health care services: 10% ther industry sectors: 33%, Breakdown by Ownership/Corporate Status: Public: 49% Private: 36% Not-for-profit: 14% Government: 1%, Participants by Location: The authorization is for a particular position and may be within a specific geographical area. . 2010Culpepper U.S. Please confirm that you want to proceed with deleting bookmark. The average is usually calculated over 17 weeks, but it can be over a longer period of up to 52 weeks if the . A prevailing rate employee regularly assigned to a night shift will receive a night shift differential during periods of leave with pay. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Some nurses prefer to sleep in shorter four-hour spurts after a shift has ended. What is the night differential? 2 answers. allnurses is a Nursing Career & Support site for Nurses and Students. Employees who work overnight shifts from midnight to 8 a.m. may be paid more. Hourly employees who work more than a 40-hour standard workweek are generally entitled to overtime pay, according to the Fair Labor Standards Act (FLSA). Weekend Option - Clinical Nurses The weekend option for clinical nurse staff is defined as first shift Saturday (7 a.m. Saturday) through 7:30 a.m. Monday. Due to inadequate staffing I am often mandated to stay an extra 4 hours. If an employee works graveyard shift hours for an agreed-upon amount of time, they will be paid more or receive an additional amount calculated as a percentage of their base salary. Shift Eligibility by Type of Job, Shift Differential Eligibility: Hourly Employees.