How do you calculate shift premium?
Straight time is calculated by multiplying the hourly base rate by the total number of hours worked. Shift premium pay is calculated by multiplying the shift premium rate by the number of hours worked on that shift. Shift premium pay may also be a fixed amount rather than an hourly differential rate.
What does 10% shift premium mean?
Let's say an employee gets $20 per hour on the regular shift. With a 10% shift differential, the employee would be paid $22 per hour, with $2 per hour being the shift differential ($20 x 0.10 = $2). Employees can also receive flat rate shift differentials. Let's say a customer support employee works third shift.
Is a shift premium per hour?
The amount of money that makes up a shift premium is usually the regular hourly pay plus a certain percentage determined by the company.
How much is 2nd shift premium?
(b) The second shift (swing shift) shall be worked between the hours of 4:30 p.m. and 1:00 a.m., Monday – Friday. Employees on the swing shift shall receive eight (8) hours pay at the regular hourly rate, plus an additional 17.3% for all hours worked.
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