These pay premiums, called shift differentials, are added to employeesâ regular pay rates. Legally, employers must include this premium in any overtime calculations, or theyâll face penalties. Companies, especially public corporations, are under the gun ⦠The jewelry store offers a 10% differential for second shift hours and a 20% differential for overnight hours (a night differential). Extra pay is often the reward for working the dreaded second and third shifts at hospitals, factories and elsewhere. Total gross pay for the month: $5000 + $500 = $5500. Total benefits ($20.20 per hour worked) include supplemental pay ($0.54), legally required benefits ($2.91), paid leave ($3.99), insurance ($6.21), and retirement and savings ($6.56) costs. Marty typically makes $25/hr and has a differential pay of $5/hr for night shift work. PTO for shift differential. 27.8% would move to a less desirable shift for $1.00 or more per hour, according to the survey results. For example, if normal business hours run from 8 a.m. to 5 p.m., shift differential would apply to hours worked between 5 p.m. and 8 a.m. O'Connor (1970), using data from the 1960s, found shift differentials for both the second and third shifts to be under 10 percent. How to Negotiate Shift Differential. And external factors compound the issue. 39.6% of those surveyed do not have health insurance. Not all industries report on what shift differentials they pay, and, surprisingly, weekend work does not attract premium rates in the same way that longer hours or night shift does. shift differentials, as a percentage of the daytime wage, have declined over time, although they never exceeded 6 percent on average. Visit PayScale to research production lead, manufacturing hourly pay by city, experience, skill, employer and more. The average hourly pay for a Production Lead, Manufacturing is $18.42. Most commonly, the differential was a cents-per-hour addition to day-shifts rates, averaging 23.2 cents for work on the second shift and 29.9 cents for work on the third shift. 0.05 X $5000 X 2 (5% of $5000 for each differential shift): $500. A shift differential, or shift pay, is a premium employers pay to employees who work outside of normal business hours. A shift differential is an extra bump in pay that some workers make for working outside of normal business hours. The average retirement and savings cost in the management, professional, and ⦠However, For example, if a restaurant is open past midnight, employees working the night shift may receive an extra $2 an hour. Average manufacturing pay is already 20% higher than that in other industries. Instead of extra pay, some companies offer additional paid time off if a team member works a weekend, holiday, or evening shift. Shift differentials are more common in jobs where employees work âundesirableâ shifts, such as in manufacturing, customer support, transportation, distribution, information technology and health care. For example, since 2005, the cost of living has risen over four times (up 35.5%) the rate of manufacturing wage increases (up only 7.4%). For those cases in which there were percentage differentials, the average was 7.3 percent of day rates for the second shift and 10.0 percent for the third. Hereâs what his timecard looks like: Marty worked 16 total night shift hours, which added $80 ⦠Shift differentials arenât required by federal law, but many companies, especially in the manufacturing industry, offer them as a way of encouraging employees to take an âundesirableâ shift such as the night shift or a weekend shift. , according to the survey results 27.8 % would move to a less desirable shift for $ 1.00 more. 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