How to calculate differential pay?

Differential pay is calculated by taking the base pay and adding a percentage to the wage. The percentage added depends on the position and company and what has been agreed upon beforehand. This added number is the "shift differential" or the extra percentage added to the normal rate.

Differential pay is extra pay for workers who are not salaried. It is an extra boost to salary and is often given if a worker is taking on additional work. As it is offered through the employer, there are no specific federal regulations for differential pay, so the specifics of the amount and payment dates depend from company to company.