Industrial Time
Industrial time expresses minutes as decimals, so 30 minutes is 0.50. Why payroll uses it, how to convert and a table for the awkward values.
Written by: Eveline Jacobse
This article explains the difference between industrial time and standard time, calculates it, and converts between them. You'll end up being an industrial time expert!
What is industrial time?
The term "industrial time" refers to the way time is calculated and measured in an industrial setting. Instead of 60 minutes, each hour is split into 100 equal parts, so time is written as a decimal number of hours.
In industrial time, an hour is represented as 1 and a half hours as 1.5. The display is mainly used in operational working time documentation and is intended to support data management.
This system has the advantage that it measures more precisely how long work processes take. For example, if an employee is paid by the hour, their wages are based on the number of hours worked. However, their pay is more accurate if their pay is based on the number of minutes they worked.
Why is it calculated in industrial minutes?
Working time calculations are much easier than with hours and minutes. For this reason, industrial time is important for recording working hours in many companies. The format documents the employees' daily working hours and their break times. With Shiftbase time tracking, staff clock in and out on their phone, a shared tablet or a browser, and their hours add up on a timesheet the manager approves, so nobody converts minutes by hand.
This system is less confusing and more accurate than other methods. Businesses using this format can ensure that they accurately represent their employees' working hours.
What are the advantages of industrial time?
Many German companies record their employees' working hours in industrial time. The time data is easier to add and manage, which is why this is the preferred option. For things like payroll, all you have to do is add up the numerical values and don't have to convert minutes into hours.
The value of industrial time is easiest to see with an example:
Real time: 2 hours 32 minutes
Real time: 1 hour 48 minutes
Real time: 3 hours 39 minutes
You must first add up the real minutes to calculate the total hours worked using the real times provided. In this scenario, the end result would be a number greater than 60, so the second stage requires switching from traditional minutes to hours.
Summing up the minutes above gives 119 actual minutes, equal to 1 hour and 59 minutes. You then calculate the actual hours and come up with six hours. This results in a total value of seven real hours and 59 real minutes. To illustrate, this conversion is much more tedious than other methods.
Industrial time in practice
Industrial time minutes are mainly used in time recording systems, payroll accounting, and working time calculation. It's much easier to do calculations. Instead of regular minutes, the working hours are shown in industrial minutes, as a decimal. No time is lost: each hour is counted in hundredths instead of sixtieths.
Industrial Minutes with example values:
Real Minutes = Decimal Hours / Industrial
30 seconds = 0.01
1 minute = 0.02
2 minutes = 0.03
5 minutes = 0.08
10 minutes = 0.17
15 minutes = 0.25
20 minutes = 0.33
45 minutes = 0.75
60 minutes = 1
Minutes and seconds: conversion at a glance
The typical times, for example, 3 hours and 45 minutes, cannot simply be added up. In the decimal form of working time, this time would be changed to 3.75 hours. The idea behind this calculation is:
An hour has 60 minutes.
To convert minutes to hours, divide by 60 (3 hours = 3 x 60 minutes = 180 minutes).
45 minutes equals 0.75 hours (45/60 = 0.75).
So 3 hours and 45 minutes equal 3.75 hours.
You can use this approach to quickly convert minutes to their decimal hours equivalent. For how decimal hours fit into recording and approving your team's hours, see our guide to employee time tracking.
How do you calculate industrial time?
Once you know the basics of arithmetic, figuring out industrial time is easy. You take the number of minutes and divide it by 60. This gives you the number of hours in decimal form.
Industrial time = real hours + real minutes/60
Suppose you want to calculate industrial time for 2 hours and 30 minutes.
The 2 hours stay as they are. Divide the 30 minutes by 60, which gives 0.5. Add the two together and you get 2.5 hours of industrial time.
When normal seconds are included, the calculation becomes more difficult. The formula for this is:
industrial time = real hours + real minutes/60 + real seconds/3600
How do you convert industrial minutes?
Switching from industrial to real-time is a bit more complicated. Note the following correspondences:
0.25 = 15 minutes
0.5 = 30 minutes
0.75 = 45 minutes
For example, 4.75 real-time industrial hours is four hours and 45 minutes.
With an industrial time of 5.38, it works like this. The whole hours stay as they are, and only the decimal part is converted back by multiplying it by 60.
Actual minutes = industrial minutes x 60
Actual Minutes = 0.38 x 60 = 22.8 (about 23 Actual Minutes)
The actual minutes and hours are then added together. In this case, that's five hours and 23 minutes. In such cases, it is essential to round up or down.
Useful Read: What Is The 7 Minute Time Clock Rule? The Employers' Guide
How do you calculate decimal minutes?
Modern time recording systems often show working time in decimal format instead of hours and minutes. For example, 8.75 hours instead of 8 hours and 45 minutes. Sometimes the term industrial minute is also used for decimal minutes.
Eveline Jacobse wrote for Shiftbase about HR topics and trends. An experienced HR professional, she wrote articles that were both practical and informative, for employers who want their people matters in order.
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