Calculating FTE Hours


Full-time equivalent (FTE) is a way to measure a worker’s involvement in a project. An FTE of 1.0 means that the person is equivalent to a full-time worker. Although the accepted HR  term for the “E” in FTE is “equivalent”, in colloquial usage or in project management terminology it is referred as full-time employee! FTE hours, can be used to measure whether an employee or resource is full-time, or how many students at an educational institution are full-time.

To better understand this:

  • Start with 40 hours a week

Use 40 hours a week as your default for full-time employment when calculating FTE hours for a project. Some projects may measure full-time status differently, such as 35 or 37.5 hours a week instead of 40, so be sure to adjust according to your project’s requirements.

  •   Figure out the number of hours in a pay period

Figure out the number of hours in a pay period by multiplying the length of the pay period by 40 hours a week. For example, if your pay period is 2 weeks, your total number of hours in a pay period would be 80.

  • Divide hours worked by hours in a pay period

Divide the number of hours your employee worked in a pay period by the total number of hours in that pay period. The total equals your FTE hours. If an employee worked 40 hours out of 80 hours in a pay period, your total would be 0.5 FTE. It’s that simple!

Shyam Verma, PMP, ITIL
Program & portfolio Mgnt professional
LinkedIn:spverma. Twitter: Shammy11
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