Full-time Equivalent

What is Full-time Equivalent?


‘Full-time Equivalent’ or ‘FTE’ refers to the multiplying factor which can be used to calculate the salary of a part-time employee based on the salary of the full time employee doing the same work.


Traditionally, this is calculated by adding together the working hours of a part-time employee and dividing the total figure by the FTE.


FTE allows the company to standardize the salaries given to the part-time employee by comparing it with the salary of the permanent employee. This kind of calculation makes it easier for the company to analyse the performance of the employees while also comparing the same with the industry standards.

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