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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
An additional payment for working night, early or rotating shifts, paid per shift or as a monthly amount. It is a contractual or policy entitlement, taxable as salary, and needs the shift actually worked from attendance rather than the shift rostered.
Payroll typically pays shift allowance from the attendance summary for the month: the number of qualifying shifts actually worked, multiplied by a per-shift rate the policy sets. The roster is not enough, because swaps and absences change who actually worked the night.
As an example, if the policy pays ₹150 per night shift and attendance shows 11 night shifts in the month, the allowance is ₹1,650, shown as its own line on the payslip. If the employee was rostered for 13 but swapped two, paying 13 overstates it.
Points to settle in the policy are the minimum hours inside the night window that count as a night shift, whether a half-worked shift qualifies, and whether leave or a holiday falling on a rostered night is paid. Night-shift rules for women employees are set by state law and conditions vary by state, so check them before rostering.
For working night or rotating shifts outside normal hours, as the company policy sets. Rates vary by employer.
Yes, it is generally taxable as part of salary. It should be shown as a separate earning on the payslip so it can be traced to shifts worked.
Usually not, if it is genuinely paid only for shift work and not universally. Check the structure against the wage definitions.
Often a fixed amount per shift worked, pulled from the roster and attendance. Payroll should match it to actual shifts.
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