OTE
OTE (abbreviation) means On-target earnings: the total pay a salesperson or other commission-based employee can expect in a year if they hit their targets in full, combining basic salary and commission or bonus. Example: “The role pays £35,000 basic with an OTE of £60,000.”
How to Use OTE
Learner’s notesIn plain EnglishWhat a sales job pays in total if you hit all your targets.
Recruitment and sales jargon; common in job adverts, especially in the UK.
'Uncapped OTE' is a contradiction used loosely in adverts; it means the commission has no ceiling, so real earnings can exceed the quoted figure.
Trace the full origin ↓Fill the Gap
Can you complete this real example?
The role pays £35,000 basic with an _____ of £60,000.
Etymology
An initialism of 'on-target earnings', standard in recruitment advertising.
Synonyms
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Rhymes for OTE
See all rhymes for OTE →Frequently Asked Questions
Is OTE guaranteed pay?
No. Only the basic salary is guaranteed; the rest depends on hitting quota. Always ask for the basic figure separately and for the share of the team that reached OTE last year, since an inflated OTE is a common recruitment tactic.
What is the difference between OTE and basic salary?
Basic salary is the fixed amount you are paid regardless of performance. OTE is that basic plus the commission or bonus you would earn at 100% of target, so OTE is always the larger number.
Is OTE before or after tax?
Before. Job adverts quote OTE as gross annual earnings, so income tax and any national insurance or payroll deductions come off it.