Question & AnswerQ&A (Commonwealth Act No. 417)
The purpose of DBM Budget Circular No. 8, S. 95 is to rationalize and standardize rates of night-shift differential pay granted to government employees pursuant to Presidential Decree No. 985 and Republic Act No. 6758, as amended.
All government employees whose regular schedule of work fall partly or wholly between 6:00 PM and 6:00 AM of the following day are covered, irrespective of employment status whether permanent, casual, temporary, or contractual, except those specifically exempted.
Exempted employees include public health workers covered by RA 7305; those whose office hours fall between 6:00 AM to 6:00 PM with overtime pay for services beyond 8 hours; and uniformed personnel of AFP, PNP, BJMP, and BFP who are on call 24 hours a day.
Night-shift differential pay is defined as a compensation premium granted to government personnel whose regular working hours fall wholly or partly within 6:00 PM to 6:00 AM of the following day.
The hourly basic rate is calculated by dividing the monthly rate by 22 working days, then dividing the quotient by 8 hours.
The maximum night-shift differential pay rate is 20% of the hourly basic rate of the employee.
Night-shift differential pay shall be paid only for the hours worked within the 6:00 PM to 6:00 AM period.
Excess hours worked during the regular night shift are compensated according to the rules and regulations on overtime compensation.
The official working hours must be prescribed by the head of office, considering the nature and necessity of services, and such schedule should be observed for a period of at least 10 working days.
No, payment of night-shift differential pay may be authorized by the Head of Office without prior approval from the DBM.
For departments and agencies, funds shall be charged against existing appropriations; for government-owned or controlled corporations, against their corporate funds; and for local government units, against their local funds. Agencies without appropriations may use savings from released personal services allotments.
All inconsistent circulars, guidelines, rules, and previous approvals by the DBM are modified or superseded accordingly.