Salary Formula Frequently Asked Questions

What is an FTE Salary and FTE Value?

A full-time equivalent (FTE) salary is the salary an employee would earn if they were full-time as per their contract. An employee working full-time would therefore earn their full FTE salary, whereas a member of staff who works fewer hours than full-time would earn only a proportion of their FTE salary.

This proportion is known as their full-time equivalent (FTE) value, and is commonly calculated as:

(Employee’s contract hours/Employee’s full-time equivalent hours [FTE Hours])*(The weeks an employee is paid to work/Employee’s full time equivalent weeks [FTE Weeks]) = FTE Value

Therefore, an employee who works 40 hours per week and 26 weeks in the year on a contract that considers full-time as 40 hours per week and 52 weeks per year, would receive an FTE Value of 0.5.

How are FTE Salary and FTE Value used to calculate salary?

To calculate a salary, the employee’s FTE salary is commonly multiplied by their FTE value.

FTE Salary x FTE Value = Salary

This way, if an employee’s FTE Salary is £30,000, and their FTE Value is 0.5, their salary is calculated as £15,000.

When an FTE Salary is linked to a pay scale, using custom formulas to calculate an employee’s FTE Value gives an organisation greater flexibility over defining the actual salary of its employees.

Why do Entitlement Groups have to be set up to add custom salary formulas?

To create custom formulas, in addition to the default formulas already set up on Every HR for teaching and non-teaching staff, Entitlement Groups determine which employees the custom salary formula applies to.

Entitlement Groups are a useful way to set criteria for whether an employee is eligible for certain entitlements, such as custom salary calculations, additional holiday weeks, or paid sick leave. To learn more, visit Entitlement Groups Overview.