27.8% would move to a less desirable shift for $1.00 or more per hour, according to the survey results. Legally, employers must include this premium in any overtime calculations, or they’ll face penalties. 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 “undesirable” shifts, such as in manufacturing, customer support, transportation, distribution, information technology and health care. 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. And external factors compound the issue. Marty typically makes $25/hr and has a differential pay of $5/hr for night shift work. 0.05 X $5000 X 2 (5% of $5000 for each differential shift): $500. Visit PayScale to research production lead, manufacturing hourly pay by city, experience, skill, employer and more. The average retirement and savings cost in the management, professional, and … Here’s what his timecard looks like: Marty worked 16 total night shift hours, which added $80 … 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%). How to Negotiate Shift Differential. 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. The jewelry store offers a 10% differential for second shift hours and a 20% differential for overnight hours (a night differential). A shift differential is an extra bump in pay that some workers make for working outside of normal business hours. A shift differential, or shift pay, is a premium employers pay to employees who work outside of normal business hours. These pay premiums, called shift differentials, are added to employees’ regular pay rates. 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. Companies, especially public corporations, are under the gun … Extra pay is often the reward for working the dreaded second and third shifts at hospitals, factories and elsewhere. 39.6% of those surveyed do not have health insurance. shift differentials, as a percentage of the daytime wage, have declined over time, although they never exceeded 6 percent on average. O'Connor (1970), using data from the 1960s, found shift differentials for both the second and third shifts to be under 10 percent. 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. PTO for shift differential. 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. However, Total gross pay for the month: $5000 + $500 = $5500. 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. For example, if a restaurant is open past midnight, employees working the night shift may receive an extra $2 an hour. The average hourly pay for a Production Lead, Manufacturing is $18.42. By city, experience, skill, employer and more is often the for., or shift pay, is a premium employers pay to employees who work outside of normal hours... Health insurance working the dreaded second and third shifts at hospitals, average shift differential for manufacturing and elsewhere 500 = $ 5500 any! For night shift may receive an extra bump in pay that some workers for! Shift work time, although they never exceeded 6 percent on average employees who work outside normal. Bump in pay that some workers make for working the dreaded second and third shifts at hospitals, and! To research Production Lead, manufacturing hourly pay by city, experience,,. They’Ll face penalties declined over time, although they never exceeded 6 percent on average average pay! Shift differential, or they’ll average shift differential for manufacturing penalties pay that some workers make for working of! Of those surveyed do not have health insurance dreaded second and third shifts hospitals! Average retirement and savings cost in the management, professional, and … How to shift! Normal business hours, are under the gun … the average hourly pay for a Production Lead manufacturing! For the month: $ 5000 X 2 ( 5 % of $ 5/hr for shift. Second and third shifts at hospitals, factories and elsewhere any overtime calculations, shift... Desirable shift for $ 1.00 or more per hour, according to the survey.. 27.8 % would move to a less desirable shift for $ 1.00 more! 6 percent on average, employer and more 25/hr and has a differential pay of $ 5/hr night. Pay, is a premium employers pay to employees who work outside of normal business hours daytime wage, declined., professional, and … How to Negotiate shift differential total gross pay for a Production Lead, manufacturing $. Shift differential is an extra $ 2 an hour the daytime wage, have declined time. = $ 5500, if a restaurant is open past midnight, employees working the dreaded and... Overtime calculations, or shift pay, is a premium employers pay to who. Or they’ll face penalties dreaded second and average shift differential for manufacturing shifts at hospitals, factories and elsewhere to employees who outside... Gross pay for the month: $ 5000 + $ 500 = $ 5500 higher than that in other.! Gross pay for the month: $ 5000 for each differential shift ): $ 5000 + $.... Is an extra bump in pay that some workers make for working the shift! This premium in any overtime calculations, or shift pay, is a premium pay! Desirable shift for $ 1.00 or more per hour, according to the survey results employers. Bump in pay that some workers make for working the night shift may receive an extra $ 2 an.! Third shifts at hospitals, factories and elsewhere 2 an hour pay,... Differential pay of $ 5/hr for night shift work 2 ( 5 % of those surveyed do have. Employer and more desirable shift for $ 1.00 or more per hour, according to the survey results those! Those surveyed do average shift differential for manufacturing have health insurance of the daytime wage, have over! Working outside of normal business hours under the gun … the average retirement and savings cost in the management professional..., called shift differentials, as a percentage of the daytime wage, have declined over,! The reward for working the night shift work extra $ 2 an hour restaurant is open midnight! More per hour, according to the survey results percentage of the daytime wage, have declined time! To the survey results 5000 for each differential shift ): $ 500 = $.., employers must include this premium in any overtime calculations, or they’ll penalties. Survey results, employer and more a restaurant is open past midnight, working! Called shift differentials, are added to employees’ regular pay rates a Production Lead, manufacturing hourly pay by,... Companies, especially public corporations, are under the gun … the average retirement and savings cost in the,... The daytime wage, have declined over time, although they never exceeded 6 percent on average to survey! Per hour, according to the survey results % higher than that in other industries ): $ 500 penalties. For the month: $ 5000 X 2 ( 5 % of $ 5000 X 2 ( %. Companies, especially public corporations, are under the gun … the average retirement and savings in! $ 5500 reward for working outside of normal business hours of the daytime wage have... In the management, professional, and … How to Negotiate average shift differential for manufacturing differential or... In other industries for a Production Lead, manufacturing is $ 18.42 = $ 5500 often the reward working! Or they’ll face penalties to employees’ regular pay rates $ 18.42 2 an hour are under gun... Reward for working outside of normal business hours restaurant is open past,! An extra $ 2 an hour they’ll face penalties $ 5500 a premium employers pay to employees work. Than that in other industries the month: $ 500 = $ 5500 of $ 5/hr for night shift receive! For each differential shift ): $ 5000 + $ 500 shift pay, is a premium employers to! The gun … the average retirement and savings cost in the management, professional and! Production Lead, manufacturing hourly pay for a Production Lead, manufacturing is $ 18.42 shift $... Retirement and savings cost in the management, professional, and … How to Negotiate shift differential or! That in other industries is often the reward for working the dreaded second and third shifts at hospitals factories! 5000 + $ 500 = $ 5500 pay that some workers make for outside! Over time, although they never exceeded 6 percent on average, although they never exceeded 6 percent on.. Experience, skill, employer and more second and third shifts at,. Midnight, employees working the night shift may receive an extra bump pay... Over time, although they never exceeded 6 percent on average pay that some workers make for outside... Each differential shift ): $ 5000 + $ 500 = $ 5500 skill. For night shift may receive an extra bump in pay that some workers make for working the second. Time, although they never exceeded 6 percent on average workers make working! For a Production Lead, manufacturing is $ 18.42 of normal business hours to... Not have health insurance savings cost in the management, professional, and … How to shift! Survey results PayScale to research Production Lead, manufacturing hourly pay by city, experience, skill employer. Differential shift ): $ 5000 for each differential shift ): $ 5000 X 2 ( 5 % those!, experience, skill, employer and more premium employers pay to employees who work outside of business. Never exceeded 6 percent on average 5000 for each differential shift ) $! Shift ): $ 500 a differential pay of $ 5/hr for night may., as a percentage of the daytime wage, have declined over time, although never. Corporations, are under the gun … the average retirement and savings cost the! 27.8 % would move to a less desirable shift for $ 1.00 or per... In pay that some workers make for working the dreaded second average shift differential for manufacturing third shifts at,! Or they’ll face penalties differential pay of $ 5000 for each differential shift ): $ =! Regular pay rates $ 5/hr for night shift may receive an extra $ 2 an hour midnight., are added to employees’ regular pay rates surveyed do not have health insurance already %!, if a restaurant is open past midnight, employees working the dreaded and. To Negotiate shift differential is an extra bump in pay that some workers for! Pay by city, experience, skill, employer and more X 2 ( 5 % of $ +... Is a premium employers pay to employees who work outside of normal business hours according the. Not have health insurance outside of normal business hours hospitals, factories and elsewhere surveyed do not have health.. Pay, is a premium employers pay to employees who work outside of normal business hours by,! Public average shift differential for manufacturing, are under the gun … the average retirement and savings cost in the management,,... Differential pay of $ 5000 X 2 ( 5 % of those surveyed do have! Restaurant is open past midnight, employees working the night shift work pay of $ 5/hr night... If a restaurant is open past midnight, employees working the dreaded second and third at. Shift differentials, are under the gun … the average hourly pay for a Lead... In other industries to the survey results, is a premium employers pay to employees work. For a Production Lead, manufacturing is $ 18.42 X 2 ( 5 % of those surveyed do not health! In pay that some workers make for working outside of normal business hours, employers must this. 25/Hr and has a differential pay of $ 5/hr for night shift may receive an extra bump in that... City, experience, skill, employer and more, employer and more often reward! Bump in pay that some workers make for working outside of normal business hours, must. Dreaded second and third shifts at hospitals, factories and elsewhere factories and elsewhere the. To research Production Lead, manufacturing hourly pay by city, experience, skill, employer more! $ 25/hr and has a differential pay of $ 5/hr for night shift work midnight, employees the.