To calculate the shift differential, you need to know the starting rate of the employee and the actual differential. The shift differential is just a bonus rate for working up to 40 hours at a nontraditional timeframe. The key with overtime is that the 40 hours per week has been exceeded, and the employee gets more money because of that. Overtime can apply to those working standard schedules or those who are working on a shift differential schedule. Overtime refers to the bump in pay (usually one and a half times the contracted pay rate) for working more than the standard 40 hours per week. Shift differential refers to the bump in pay (usually 10% to 15%) to work undesirable hours. Shift differential and overtime are two different things. The shift differential rewards employees for working those shifts and makes it easier for employers to find someone to work unusual hours. By getting a bump in pay, the employee is able to justify working hours that fall outside of the typical workday. It gives an employee more money to choose a shift that others might not want to work. ![]() ![]() The reasons for using a shift differential are simple and make a lot of sense. This bump can entice workers to take an undesirable shift because they get a higher pay rate. Essentially, the worker gets a bump in pay for working hours outside of the normal business day. It considers shifts Monday through Sunday, so weekends are also counted when considering the shift differential. ![]() The shift differential is the amount a staff member gets paid for working a shift that is outside of the normal 8 a.m.
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