Shift Allowance

How Night Shift allowances in IT Companies are calculated?

What is the standard?

What things should be considered for the same?

What are the timings, that considered for night shift allowance?


Hi @PCSPL14052 .

The calculation of night shift allowances in IT companies can vary based on company policies, industry norms, and local regulations. While specific calculations may differ, here are some common approaches used to determine night shift allowances in IT companies:

  1. Fixed Percentage: Some companies provide a fixed percentage of the basic salary as a night shift allowance. For example, they may offer an additional 10% or 15% of the basic salary as a night shift allowance to employees working during designated night shift hours.

  2. Hourly Basis: In certain cases, night shift allowances are calculated on an hourly basis. The company may determine an hourly rate for night shifts and multiply it by the number of hours worked during the night shift to calculate the allowance.

  3. Differential Pay: Another approach is to provide differential pay between regular day shifts and night shifts. The differential amount is added to the employee’s regular salary to compensate for working during the night shift hours.

  4. Industry or Location Standards: Some IT companies may adhere to industry or location-specific standards for night shift allowances. These standards may be established by industry associations or based on prevailing practices in the specific region.

It’s important to note that night shift allowances may also be subject to applicable laws and regulations, such as those related to minimum wages, working hours, and overtime pay.


The timings considered for night shift allowances can vary between companies and industries. However, in many organizations, night shift allowances are typically provided to employees working during a designated “night shift” period, which is defined by specific hours.

Commonly, the night shift period is considered to be during the late evening and early morning hours when most employees are not typically working. The exact timings can vary, but it often falls within the range of 10:00 PM to 6:00 AM or 11:00 PM to 7:00 AM.

It’s important to note that the specific night shift timings and allowances may be determined by company policies, collective bargaining agreements, or local labor laws. Some companies may have variations in night shift allowances based on the duration of the night shift or the specific industry requirements.

To know the precise timings considered for night shift allowances in a particular company, it is advisable to refer to the company’s policies, HR guidelines, or consult with the HR heads directly. They will be able to provide accurate information specific to your organization’s practices and policies.