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Full-time Equivalent (FTE) is a unit equivalent of a full-time employee’s workload. It is the ratio of the total number of paid hours by the number of working hours in a period. It is used to measure employees regardless of the difference in total working hours. At present, seasonal and temporary workers are excluded from total FTE calculations.

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EditSteps

  1. Calculate FTE Step 1.jpg
    1
    Compute the number of hours worked by full-time employees per period. A full-time employee is someone who works a maximum of 40 hours (30 hours minimum) every week for over 120 days every year.
    • Multiply the number of workers by 40 (8 hours a day x 5 days a week).
      • Example: 6 full time workers: 6 x 40 = 240 hours
    • Multiply the result by 52 (weeks in a year).
      • Example: 240 x 52 = 12,480 full-time hours
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  2. Calculate FTE Step 2.jpg
    2
    Find the hours worked by part-time employees. This is applicable for companies that employ both full-time and part-time workers.
    • Multiply the total weekly hours by the number of weeks each part-time employee has worked. Example:
      • 1 Part-time Employee worked 15 hours every week for 30 weeks: 1 x 15 x 30 = 450 hours
      • 2 Part-time Employees worked 20 hours for 40 weeks each: 2 x 20 x 40 = 1600 hours
    • Add the results together to obtain their total hours.
      • Example: 450 + 1600 = 2,050 part-time hours
  3. Calculate FTE Step 3.jpg
    3
    Combine the hours worked by full-time and part-time employees. This is the total number of hours worked by all the employees.
    • Example: 12,480 (full-time) + 1600 (part-time) = 14,080 total hours
  4. Calculate FTE Step 4.jpg
    4
    Divide the total hours worked by the number of full-time hours. This will determine the FTE of the company for a particular period.
    • Divide the total hours by 2,080 (8 hours a day x 5 days a week x 52 weeks a year) to calculate yearly FTE.
      • Example: 14,080 total hours ÷2080 = 6.769 FTEs
    • Divide the total hours by 173.33 to find the FTE per month.
      • Example: 4,000 hours for February ÷173.33 = 23.07 FTEs
    • Divide the total hours by 8 to obtain FTE per day.
      • Example: 80 daily hours ÷ 8 = 10 FTEs
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  • FTEs do not indicate the number of employees. The value of an FTE is constant over time, except when the company modifies its regular staffing pattern.

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Article Info

Categories: Business

Recent edits by: Emma, Laura

In other languages:

Italiano: Come Calcolare l'Equivalente a Tempo Pieno (FTE), Español: Cómo calcular el equivalente de tiempo completo (FTE), Português: Como Calcular a FTE, Русский: вычислить эквивалент полной занятости

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