A pay differential is special additional pay recognizing unusual competencies, circumstances, or working conditions applying to some or all incumbents in select classes. Pay Differentials are typically initiated through the collective bargaining process but may also be the result of a classification proposal.

What are some common types of differential premium pay?

What are some common types of differential/premium pay?

• Hazard Pay.
• Shift Differential Policy.
• Paid Holidays Policy with Premium and Overtime Pay Provisions.
• Hazardous Duty Pay Policy.
• On-call Pay Policy: Emergency Call-back.

What is a 10% differential in pay?

For example, an employee who works the “graveyard” shift may receive a pay differential of 10%. 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).

What is a typical shift differential?

Shift differential premiums for salaried employees are usually calculated as percentage of base salary. Amounts typically range between 5 and 15 percent of base salary.

What are salary differentials?

A salary differential is an increase based on earned academic credits, coursework or degrees beyond the bachelor’s degree.

How do you calculate overtime differential?

Most employers use a 1-1/2 times rate. Multiply your regular pay rate by the overtime differential. For example, if your regular pay rate is $10.42 and your overtime differential is 1-1/2, multiply $10.42 by 1.5. If your employer uses a double time rate, multiply your regular rate by two.

What is night pay differential?

Night pay is a 10 percent differential paid to an employee for regularly scheduled work performed at night. It is computed as a percentage of the employee’s rate of basic pay (including any applicable locality payment or special rate supplement).

How do you calculate shift differential?

Multiply the percentage by the hourly wage to figure out differential pay. For example, if a worker earns $20 an hour, and the differential for the night shift is 10 percent: 20 x 0.10 = 2 Therefore, the differential pay would be $2 per hour.