What counts as paid time.

Your hourly rate is a fraction. This topic is the denominator — which hours your employer is actually buying, and which ones you are giving away because nobody wrote it down.

Paid time is a contract question, not a maths question

There is no universal rule for what counts as work. There is your agreement, your local labour law, and the habit of whoever runs the rota. Where those three disagree, the agreement usually wins — which is why the honest answer to most questions in this topic starts with “check your contract” rather than a number.

What the site can do is make the arithmetic visible once you know the rule. Mark a break as unpaid and the counter freezes. Mark it paid and it keeps running. Either way the number you see matches the contract you described, instead of a default assumption baked in by someone else.

The five kinds of time that get argued about

Type of timeUsually paid?What it changes
Meal break, 30–60 minNoRemoves ~6% of paid hours on an 8.5 h day
Rest break, 5–20 minYesNothing — it stays inside paid time
Handover / briefingDependsOften unpaid in practice, paid on paper
Travel between sitesUsually yesCommuting is not; the second site usually is
On-call standbyAllowance, not full rateAdds a flat amount rather than hours

Meal breaks are the expensive one

Half an hour a day is 130 hours a year — more than three working weeks. If your salary assumes those hours are paid and they are not, your real rate is lower than the one you have been quoting in conversations with yourself. The full arithmetic, including what it does to a $60,000 salary, is in are lunch breaks paid.

Handover is the one nobody writes down

In shift work, the fifteen minutes you spend briefing the next person is often the most genuinely work-like part of the day, and often the least recorded. Across a four-shift week that is an hour; across a year it is a working week and a half. It is not a rounding error — it is a policy gap.

Premium hours: when the rate itself changes

Most of this topic is about which hours are paid. The rest is about hours that are paid differently — and there are two mechanisms worth knowing.

Overtime multiplies the base rate

Overtime is a multiplier applied to your regular rate, not a new rate invented for the occasion. That distinction matters because the base rate is where disputes happen: if your regular rate was understated, every overtime hour is understated by the same proportion. The arithmetic and the four common errors are in how overtime is calculated.

Night differentials add to it instead

A shift differential is usually a flat amount or a percentage for hours inside a defined window — often something like 22:00 to 06:00. It is additive rather than multiplicative, and it frequently does not appear in the advertised hourly rate, which is why two people on the same contract can take home very different amounts. See night shift pay for what a differential is worth over a year.

Long shifts hide the biggest gap

A 12-hour shift is rarely 12 paid hours, and the shorter the working week, the more each unpaid hour costs proportionally. On three 12-hour shifts a week, losing 45 minutes a shift to breaks and handover is over 100 hours a year — nearly 6% of your paid life. That case is worked through in 12-hour shift pay.

What this topic covers

Five guides and two live tools. The guides are ordered from the most common question to the most specialised:

The denominator these rules produce feeds straight into what an hour is worth. The delay between working those hours and being paid for them is when the money arrives.

Questions

What counts as paid time — short answers

The questions people ask after reading this topic.

Is a lunch break paid?
Usually not, if it is 30 minutes or longer. Shorter rest breaks are more often paid. The only reliable answer is your contract or handbook — a generic calculator assuming a tidy eight paid hours is guessing on your behalf.
What hours count as overtime?
In most places, hours worked beyond the standard threshold in a workweek — commonly 40. The rate is then a multiple of your regular rate: 1.5× is the usual minimum, 2× for certain holidays or very long days. Unpaid breaks do not count toward the threshold, which is why a 45-hour week with lunch is often only 40 paid hours.
Is a night shift worth more per hour?
Often, yes. A shift differential is an extra amount or percentage paid for hours worked in a defined night window. It is common in healthcare, manufacturing, logistics and hospitality, and it is frequently not included in the advertised hourly rate — so the real night rate can be noticeably higher than the day rate.
How many hours of a 12-hour shift are actually paid?
Usually fewer than 12. Unpaid meal breaks, handover time and travel between sites all come out of the clock. A 12-hour shift with a 30-minute unpaid break and a 15-minute handover is 11.25 paid hours — and on a three-day week, that 0.75-hour gap is over 100 hours a year.

Every guide here exists to make one number honest — the one on the free salary timer.

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