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Payroll

Shift Allowance

Additional pay provided to employees who work unsociable or irregular hours.

Full Definition

A shift allowance is additional compensation paid to employees who work shifts outside of standard working hours — including night shifts, weekend shifts, early morning starts, or public holidays. Shift allowances compensate employees for the inconvenience of working unsociable hours and help organizations attract workers for less desirable shifts. Shift allowance rates and eligibility are typically defined in employment contracts or collective agreements. Payroll software automatically applies the correct shift allowance rate based on the hours worked.

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