These pay premiums, called shift differentials, are added to employees’ regular pay rates. shift differentials, as a percentage of the daytime wage, have declined over time, although they never exceeded 6 percent on average. The jewelry store offers a 10% differential for second shift hours and a 20% differential for overnight hours (a night differential). For example, if a restaurant is open past midnight, employees working the night shift may receive an extra $2 an hour. Instead of extra pay, some companies offer additional paid time off if a team member works a weekend, holiday, or evening shift. How to Negotiate Shift Differential. 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. Marty typically makes $25/hr and has a differential pay of $5/hr for night shift work. Shift differentials are more common in jobs where employees work “undesirable” shifts, such as in manufacturing, customer support, transportation, distribution, information technology and health care. 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. Extra pay is often the reward for working the dreaded second and third shifts at hospitals, factories and elsewhere. PTO for shift differential. 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. Here’s what his timecard looks like: Marty worked 16 total night shift hours, which added $80 … Visit PayScale to research production lead, manufacturing hourly pay by city, experience, skill, employer and more. A shift differential is an extra bump in pay that some workers make for working outside of normal business hours. 27.8% would move to a less desirable shift for $1.00 or more per hour, according to the survey results. The average retirement and savings cost in the management, professional, and … 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. A shift differential, or shift pay, is a premium employers pay to employees who work outside of normal business hours. Shift differentials aren’t required by federal law, but many companies, especially in the manufacturing industry, offer them as a way of encouraging employees to take an “undesirable” shift such as the night shift or a weekend shift. And external factors compound the issue. 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. Average manufacturing pay is already 20% higher than that in other industries. Legally, employers must include this premium in any overtime calculations, or they’ll face penalties. The average hourly pay for a Production Lead, Manufacturing is $18.42. Total gross pay for the month: $5000 + $500 = $5500. However, O'Connor (1970), using data from the 1960s, found shift differentials for both the second and third shifts to be under 10 percent. 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