What is Full-Time Equivalent (FTE)?

Full Time Equivalent (FTE) refers to the ratio of the total paid number of hours worked by the amount of working hours in the same period over a working week. This is important for organisations to note as part of their hiring quotas and to help inform their budgets. FTE can be calculated annually (by multiplying the number of working hours per day by 5 days and then 52 weeks) or monthly (by dividing the total number by 173.33 hours).