Income & Work

What Is a Shift Differential?

A shift differential is extra pay for working less desirable hours, such as evening, night, weekend, or holiday shifts. It is usually a fixed amount added per hour or a percentage of the base rate. In the United States it is generally not required by federal law but is common in healthcare, manufacturing, and other 24-hour operations.

Example

A 1.50 per hour night differential on a 20 base rate gives 21.50 per hour for night shifts. A 10% differential would give 22.

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.