What accurately defines Night Shift Differential (NSD)?

Night Shift Differential (NSD) is commonly defined as an additional payment or increase to an employee's regular wage that compensates them for working during less desirable hours, typically at night. In this context, an explanation for the correct choice highlights that NSD can indeed involve a percentage increase specific to night hours worked, recognizing the challenges associated with these shifts.

The option reflecting a 10% increase aligns with common practices in many organizations where night shifts are compensated at a higher rate due to the potential impact on employees' circadian rhythms and work-life balance. This rationale helps to encourage employees to take on these shifts.

The other options do not accurately represent the typical structures associated with NSD. For instance, defining NSD as a fixed amount or as a specific percentage such as 5% or 15% does not encompass the more commonly seen variations in compensation, which may differ widely by industry or company policy. Understanding that night shift differentials can vary—from a flat rate to a percentage increase—is important in grasping the broader application of such benefits in the workforce.