Night shift differential explained
Updated 2026-10-26
A night shift differential is extra pay for hours worked in the evening or overnight, added either as a flat amount per hour or as a percentage of your base rate.
Two common types
- Flat: for example, an extra $2 for each hour worked after 6pm.
- Percentage: for example, base rate plus 10% to 15% for night hours.
Worked example
You earn $26/hour and work a 10pm to 6am shift with a 15% night loading. Each hour pays $26 x 1.15 = $29.90, so 8 hours pays $239.20 before tax.
US vs Australia
In the US, the FLSA does not require a shift differential, so it depends on your employer or union contract. In Australia, many awards set evening and night penalty rates, so check your award on the Fair Work Pay Calculator. See also penalty rates in Australia.
Clockwell applies evening and night rates to the hours that qualify in each shift, so split shifts are paid correctly.
Frequently asked questions
What is a night shift differential?
Extra pay for working evening or overnight hours, either a flat amount per hour (for example $2 an hour) or a percentage of your base rate (for example 10%).
Is night shift differential required by law?
In the US it is not required federally; it comes from employer policy or a union contract. In Australia, many modern awards set evening and night penalty rates.
How do I calculate a percentage shift differential?
Multiply your base rate by the percentage and add it on. At $28 an hour with a 15% differential, you earn $28 + $4.20 = $32.20 for each qualifying hour.