What Is an FTE (Full-Time Equivalent)?
A full-time equivalent (FTE) is one full-time worker's hours, usually 2,080 paid hours a year (40 hours a week for 52 weeks). Service contracts are often staffed and priced in FTEs.
FTE (full-time equivalent) in plain English
An FTE counts hours, not people: two half-time workers make one FTE, and 1.5 FTEs is one full-time worker plus one half-time.
Some solicitations define an FTE by productive hours instead, after leave and holidays, so check the definition in yours before you price the work.
On a Service Contract Act job, multiply each FTE's hours by the wage determination's hourly rate, then add fringe benefits, payroll taxes, overhead and profit.
Related terms
- Service Contract Act (SCA): The Service Contract Act (SCA) requires contractors on federal service contracts over $2,500 to pay service workers at least the wages and fringe benefits in the contract's wage determination.
- Wage determination: A wage determination is a Department of Labor schedule of minimum wages and fringe benefits for workers on a federal construction or service contract.
Put it to work
Looking for another term? Browse the full glossary or the government contracting glossary guide.
Cyrus Hakimi writes and edits these definitions, using AI tools to help research and draft them, from the FAR, SBA rules and SAM.gov documentation. They're general information, not legal advice. Rules and thresholds change, so confirm the numbers on the official source before you act.