Glossary term
Shift differential
Premium pay for evening, night, or weekend shifts.
Definition
Shift differential is additional compensation paid for working evening, overnight, weekend, or holiday shifts — usually expressed as a percentage premium on the base hourly rate (commonly 10%–25%) or a flat dollar amount per hour. Shift differential is most common in healthcare (24-hour hospital staffing), manufacturing (continuous production), warehousing, and call centers. Shift differential is paid on top of the regular rate and counts toward the overtime base for non-exempt employees.
Example
A nurse on a $45/hour base earning a 15% night differential makes $51.75/hour during overnight shifts.
Related terms
- Pay period — The recurring window of time covered by a single paycheck.
- Pay frequency — How often paychecks are issued.
- Payday — The calendar day wages are deposited.
- In arrears — Wages paid after the pay period ends.
- Biweekly — Every other week — 26 paychecks per year.
- Semimonthly — Twice per month on fixed dates — 24 paychecks per year.
See also
- Pay schedule calculator — convert salary to per-paycheck amount
- Pay frequencies primer — weekly, biweekly, semimonthly, monthly
- Frequently asked questions