FTE (Full-Time Equivalent)
Also known as: full-time equivalent, full time equivalent
FTE (full-time equivalent) expresses headcount or workload as a fraction of a full-time schedule, used to pro-rate leave and plan staffing.
Full-time equivalent (FTE) is a unit that normalises employees of different working patterns onto a single full-time scale. One full-time employee is 1.0 FTE; someone working half the standard hours is 0.5 FTE. Two half-timers therefore equal 1.0 FTE of capacity.
FTE is used to pro-rate leave entitlement, budget for staffing, and report workforce size in a way that's comparable across part-time and full-time staff.
Formula
FTE = employee's contracted hours ÷ organisation's full-time hours
Example
If full-time is 40 hours/week, an employee contracted for 30 hours is 30 ÷ 40 = 0.75 FTE, and receives 75% of the full-time leave entitlement.
Related terms
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