Glossary:Full-time equivalent (FTE) (2024)

FAQs

What is a full-time equivalent FTE? ›

A full-time equivalent (FTE) is a unit of measurement used to figure out the number of full-time hours worked by all employees in a business. If your business considers 40 hours to be a full-time workweek, then an employee working 40 hours per week would have an FTE of 1.0.

To calculate the FTE value for a specific position, simply divide the number of hours worked by the number of hours considered to be full-time.

In that same vein, you can calculate an FTE of 80%. If a full-time employee is expected to work 40 hours per week, then an FTE of 80% (or FTE=0.8) will be equal to 32 hours. If a full-time employee is expected to work 35 hours per week, then an FTE of 80% (or FTE=0.8) will be equal to 28.

What does . 75 FTE mean? A. The employee has a regular (not temporary) budgeted assignment of 75% of a full-time position (either 28 hours per week for non-exempt positions, which normally work 37.5 hrs per week; or 30 hours for exempt positions normally working 40 hrs per week).

A full-time equivalent - a number, typically between zero and one and reported to one decimal place that represents how much full-time work an employee performs. For example, an employee who works 20 hours per week is said to be 0.5 FTE if we assume that 40 hours per week is a typical full-time employee.

Based on an FTE of 1.0, we calculate employees work 2,080 hours per year. This does not include holidays and days of absence. Furthermore, this value is used only as a basis for calculating the annual FTE and reflects the hours of an employee who works 5 days a week, 8 hours a day.

The calculation is straightforward — divide the employee's scheduled hours by the number of hours that represent an official weekly full-time schedule in a company (e.g., 40 hours per week). Therefore, an FTE for a standard full-time worker working 40 hours per week is 1.0 FTE.

The calculation of full-time equivalent (FTE) is an employee's scheduled hours divided by the employer's hours for a full-time workweek. When an employer has a 40-hour workweek, employees who are scheduled to work 40 hours per week are 1.0 FTEs. Employees scheduled to work 20 hours per week are 0.5 FTEs.

Full Time Equivalent (FTE) refers to the unit of measurement equivalent to an individual – worker or student – one unit of a work or school day, applicable in a variety of contexts. In most cases, full time equivalents measure an employee or student and/or their workload.

Any employee at this organization who works less than 40 hours per week is part-time and has an FTE of less than 1.0. Organizations can use FTEs greater than 1.0 to determine how many full-time employees it theoretically has. For instance, two full-time employees and two part-time employees might equal 2.7 FTE.

How is ACA FTE calculated? ›

Start by taking the total number of part-time employees and add their total hours of service for a particular month together. Next, divide the total by 120. The result is your full-time equivalent count for the month. Add these to your full-time employee count to determine ALE status for the month.

Full time: FTE stands for full-time equivalent. If you work 40 hours per week, you are a 1.0 FTE. If you were hired to work three 12-hour shifts, you are a 0.9 FTE (even if you work overtime or frequently reach 40 hours). A 0.5 FTE is typically 20 hours a week.

Under the Affordable Care Act (ACA), one FTE is a combination of employees who aren't full-time, but whose joint hours are the same as a full-time employee (at least 30 each week or 130 each month).

What Is the Difference Between FTE and Headcount? Headcount refers to how many people your company employs. Calculating headcount is as simple as adding up the number of people on your payroll, while FTE refers to the number of full-time hours being worked at the company.

Full-time Employee (FTE): an employee that is regularly scheduled for 40 hours per week. Part-time Employee (PTE): an employee that is regularly scheduled for more than 20 hours and less than 40 hours per week.

In another, it may be 37.5 hours per week. Since both are considered to be full-time schedules in their respective companies, both count as 100% or 1.0 FTE.

FTE example

For example, if you have one employee who worked 50 hours, one employee who worked 10 hours, and one employee who worked 40 hours on a project in a given week, that adds up to 100 total hours worked that week; assuming a full-time employee works 40 hours per week, your FTE is 2.5.