Gross & Effective Hours

What is Gross & Effective Hours?

Gross hours are the total working hours of employees including breaks and other activities during the day, and effective hours refer to the exact working hours excluding breaks. Gross effective hour refers to the entire amount of time an employee spends in the company.

Gross hours and effective hours are different, and both gross hours and effective hours are often calculated. Every employee’s attendance is calculated based on the working hours. In that case, few companies consider actual effective hours and some of considering gross hours spent.

The organization maintains the attendance sheet supported by an employee’s total working hours.

• If a company is maintaining a timesheet, the logged in and logged out time has got to be calculated as gross hours.
• If a company is maintaining a timesheet, the logged in and logged out time, subtracted by break time has got to be calculated as effective hours.

Also, See: Flexible Working Hours