Shift differential pay is employees who work shift differential pay receive additional compensation for choosing to work unfavorable shifts like evening or midnight shifts. The pay a staff member receives for working a shift that falls outside of the usual 8 a.m. to 5 p.m. workday is known as the shift differential. The shift differential takes into consideration shifts from Monday through Sunday, so weekends are also taken into consideration. In essence, the employee receives a pay raise for working hours outside the typical business day.