Work out the uplift paid for unsociable shifts and what it adds to the total wage bill.
The premium rate is the base rate multiplied by the uplift, and total pay adds it to ordinary hours. Showing the premium as a share of total pay makes clear how much of the wage bill is discretionary. Shift Differential consistently above about 15% of the wage bill is usually cheaper to solve with another hire than to keep paying at a premium.
Shift Differential
Shift Differential pay = base rate × multiplier × shift differential hours
Shift Differential pay = base rate × multiplier × shift differential hours The premium rate is the base rate multiplied by the uplift, and total pay adds it to ordinary hours. Showing the premium as a share of total pay makes clear how much of the wage bill is discretionary.
Shift Differential consistently above about 15% of the wage bill is usually cheaper to solve with another hire than to keep paying at a premium.
This calculator takes 4 inputs: Base hourly rate, Shift hours at the differential rate, Pay multiplier, Normal hours in the period. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.