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Correct configuration of FTE codes in salary calculations

How an incorrect Staff Factor (FTE Code) can lead to overstated pro-rata salaries, and how to configure FTE codes correctly in Education Budgets.

Written by Cristina Gruita

An incorrect Staff Factor (FTE Code) configuration can lead to inaccurate salary calculations. This article explains why this happens, how the calculation works, and how to configure FTE codes correctly in Education Budgets.

Understanding the issue

If a Staff Factor (FTE Code) is set using term-time or reduced weeks (for example, 35 hours/week and 46.07 weeks/year) instead of standard full-year working weeks, the system treats the contract as near full-time. This results in overstated pro-rata salaries.

How the calculation works

Education Budgets calculates salary using the following formula:

FTE = (Contracted Hours × Contracted Weeks) ÷ (FTE Hours × FTE Weeks)

Pro-Rata Salary = Full-Time Salary × FTE.

Example: incorrect vs correct FTE Code

The table below shows how the same staff contract produces different salary outcomes depending on whether the FTE Code uses term-time weeks or standard full-year weeks.

❌ Incorrect FTE Code

✅ Correct FTE Code

FTE Code

35 hrs/week × 46.07 weeks = 1,612.45

35 hrs/week × 52.143 weeks = 1,825.005

Staff contract

30 hrs/week × 46.07 weeks = 1,382.10

30 hrs/week × 46.07 weeks = 1,382.10

FTE

1,382.10 ÷ 1,612.45 = 0.8571

1,382.10 ÷ 1,825.005 = 0.7573

Pro-rata salary (£31,530 FTE)

£31,530 × 0.8571 = £27,024.00

£31,530 × 0.7573 = £23,878.08

Difference

£3,145.92 overpaid with incorrect code

Resolution

To ensure salary calculations are accurate, follow the steps below.

Step 1: Create a new Staff Factor (FTE Code)

  1. In the Scenario menu, click Staff Factors.

  2. Click the blue plus icon in the top-left corner.

  3. Enter the following details:

    • Hours per week: 35.

    • Weeks per year: 52.143.

  4. Click Save.

Step 2: Update staff contracts to use the new FTE Code

  1. In the Scenario menu, click Staffing.

  2. Find the member of staff using the incorrect Staff Factor.

  3. Click the head and shoulders icon to the left of the staffing line to open the contract.

  4. Go to Scale Details and locate the FTE Code field.

  5. Use the drop-down to select the new Staff Factor.

  6. Save the contract.

  7. Repeat for every contract that was using the incorrect FTE Code.

⚠️Important: You cannot edit or delete a Staff Factor while it is attached to an existing staff contract. Remove the Staff Factor from all contracts before making changes to it.

Step 3: Verify salary outputs

Once contracts have been updated, confirm that the pro-rata salaries displayed in the Staffing section reflect the correct values. You can use the Quick Salary Calculator in the Scenario menu to cross-check figures.

Additional example

For a staff member on a different term-time contract, the same corrected FTE Code applies:

  • Contract: 30 hrs/week × 45.04 weeks = 1,351.20.

  • FTE: 1,351.20 ÷ 1,825.005 = 0.7404.

  • Pro-rata salary: £31,530 × 0.7404 = £23,344.23.

Recommendation

Always align Staff Factors (FTE Codes) with standard full-time working weeks (52.143) unless the role is genuinely term-time only. This ensures the system calculates pro-rata salaries correctly.

For guidance on creating and editing Staff Factors, see Create or Edit a Staff Factor.

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