Meaning & use

OTE salary

noun·Advancedbusiness

Last updated

UK/ˌəʊ.tiːˈiː ˈsæl.ər.i/
US/ˌoʊ.tiːˈiː ˈsæl.ɚ.i/

Meanings

  1. nouncountable or uncountablebusiness

    The pay an employee receives when they meet all the targets set for their job, including basic pay plus expected bonuses or commission.

    Grammar: Often used before another noun (an OTE salary) and usually written in capitals; it can be countable (an OTE of $80,000) or uncountable (paid on OTE).

    Patterns

    • an OTE salary of $80,000
    • earn $80,000 on OTE
    • OTE is $80,000
    • an OTE of $80,000

    The job advertisement lists an OTE salary of $75,000 in the first year.

    Her OTE is $90,000, but she only reached it once because the targets are tough.

    Recruiters often quote an OTE salary that assumes you hit every monthly target.

  2. nounsingularbusiness

    The total amount a worker can expect to earn in a year if performance goals are fully achieved.

    Grammar: Used as a fixed business phrase, usually after 'on' or with 'of': paid on OTE, an OTE of $60,000.

    Patterns

    • on OTE
    • an OTE of $60,000
    • paid on OTE

    New hires are paid on OTE, so their take-home pay changes from month to month.

    The contract explains that the OTE figure is not guaranteed.

    She asked whether the OTE included the annual team bonus.

Common combinations

OTE salary of $80,000
The listing promises an OTE salary of $80,000 for the first year.
on OTE
Sales staff here are paid on OTE rather than a flat rate.
OTE figure
The OTE figure in the contract is only an estimate.
reach your OTE
Few people reach their OTE before the final quarter.
OTE package
The OTE package includes base pay, commission, and a yearly bonus.

Synonyms and how they differ

on-target earnings
The full form of OTE; use it in formal writing or when your reader may not know the abbreviation.
total compensation
A wider term that also covers pensions and benefits, not just pay tied to targets.
package
Informal and general; it can mean pay plus benefits, so it is less exact than OTE.

Word family

OTE abbreviation
Short form of on-target earnings, used mainly in job advertisements.

Commonly confused: OTE salary or salary? OTE salary or commission?

OTE salary vs salary

Salary is the fixed yearly amount; an OTE salary includes expected commission or bonuses on top of the basic pay.

OTE salary vs commission

Commission is only the part earned from sales; OTE covers basic pay plus expected commission.

Practice

A job ad says: 'OTE salary: $70,000.' What does this mean?

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