Gross effective hours | Meaning and Definition

What is the gross effective hour?

Gross effective hour refers to the total amount of time an employee spends in an organization. The organization maintains the attendance sheet based on an employee’s total working hours.

In a few cases, the organization considers the actual effective work hours employees spend in their work. In some other cases, the organization considers the employee’s gross hours in the organization.

What is a gross hour, or what is the meaning of a gross hour? – Gross hours are defined as the total working hours an employee spends in an organization, including lunchtime, break intervals, etc. (Gross means total hours spent).

What is an effective hour or define an effective hour? – An effective hour refers to the total working hours of an employee in an organization, excluding the breaks.

Both gross hour and effective hour are different, and according to the employee’s attendance, both gross hour and effective hour can be calculated. But, in an employee’s attendance, both gross hour and effective hour play a vital role, although it has huge differences.

How to calculate the effective work hour of an employee?

  • If an organization is maintaining a physical timesheet, the logged in and logged out time has to be calculated from the physical timesheet.

  • If an organization uses a digital attendance system, the logged in and logged out time will be calculated automatically by the machine.

  • For calculating effective work hours, go for a 24-hour time slot and not a 12-hour time slot. Add twelve to the afternoon time hour and not to the morning time hour. (For example, 5 P.M. becomes 17:00 hours).

  • As the next step, subtract the logged-in time from the logged-out time.

  • The next step is to subtract the lunch and break hours.

In this way, an employee’s effective work hours will be calculated.