Full-time Equivalent (FTE) definition
Full-time equivalent (FTE) allows part-time workers’ working hours to be standardised against those working full-time. The standardised figure is 1.0, which refers to a full-time worker. 0.5 refers to an employee that works half full-time hours.
FTE also allows companies to standardise salaries by showing what the equivalent salary would be of a part-time employee were they working full-time. A related term is pro-rata – part time employees are paid an annual salary pro rata, which means adjusted for their working hours.
FTE is sometimes referred to as work-year equivalent (WYE).