Unlike overtime, there’s no statutory rate for night or rotational shift allowance in India, it’s purely a company policy decision, paid either as a flat amount per shift or as a percentage of basic pay. This calculator supports both structures.
Companies structure shift allowance one of two ways: a flat rupee amount for every qualifying shift (simple to administer, doesn’t scale with seniority), or a percentage of the employee’s basic pay per shift (scales with pay level, more common at larger organizations). Neither is mandated by law, so whichever your company uses is a policy choice you should confirm against your own offer letter or HR policy rather than assuming a standard rate.
No fixed statutory rate exists for the allowance itself, but some state Shops & Establishments Acts mandate additional safeguards, like transport or security, for women working night shifts, separate from the pay question.
Generally no, PF and gratuity are typically computed on Basic+DA, and shift allowance is usually a separate line item, but confirm against your specific company’s payroll structure.
Yes, it’s taxed as part of your regular salary income, there’s no special exemption for shift allowance the way there is for HRA or LTA.
Shift allowance and overtime are usually calculated and paid separately, use our Overtime Pay Calculator alongside this one if both apply to your situation.
Our guide to shift planning covers the scheduling side, how shifts get designed and rotated, separately from the pay question this calculator answers.
If you’re running multiple shifts across a team, roll the allowance total into your broader budgeting with our Workforce Cost Calculator.