Work out shift differential pay: base pay for all hours, the extra differential amount, total pay, and the effective hourly rate.
A shift differential is extra pay for less desirable hours, such as nights or weekends, paid on top of the base rate for the hours it covers. Base pay here covers every hour worked — regular and differential hours alike — at the base rate. The extra is the differential hours multiplied by the differential amount, either a flat dollar figure per hour or a percentage of the base rate. The effective hourly rate divides total pay by total hours.
What is a shift differential? Extra hourly pay for working particular shifts, commonly nights, evenings or weekends. It is paid in addition to the base rate for the hours on that shift.
How does a percentage differential work? The extra per differential hour is the set percentage of the base rate. At a $20 base rate, a 10 percent differential adds $2.00 for each differential hour.
Does the differential replace the base rate for those hours? No. Differential hours still earn the full base rate; the differential is an addition on top, which is how the total here is built.