Full-time Equivalent

Posted in Human Resources Terms, Total Reads: 1596

Definition: Full-time Equivalent

Full-time Equivalent is a unit which is used as a comparable device for workloads done by employees. This also acts as a measuring device for the pay that needs to be given at the end of the contract like service.

For example, the U.S. law reveals that working hours per quarter need to be 411.25 (= 35 hours * ( 52 weeks per year – 5 weeks vacation)/4).

Suppose that an employee works for 100 hours, he would be paid compensation only to the comparable of 100/ 411.25 proportionally.

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