abbreviation

OTE

oh-tee-EE

Quiz me More like this

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.”

abbreviation

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.

"The role pays £35,000 basic with an OTE of £60,000."

"Ask what proportion of the team actually hit OTE last year."

How to use OTE

Learner’s notes

In plain EnglishWhat a sales job pays in total if you hit all your targets.

When to use it

Recruitment and sales jargon; common in job adverts, especially in the UK.

Memory tip

'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 ↓

Easily confused with

basic salary commission → uncapped commission package →

Common pairings

£50k OTE uncapped OTE basic plus OTE hit OTE

Vocabulary Flow

Build your vocabulary from words like OTE.

Vocabulary Flow serves the next word, and the next — meaning, pronunciation and an example each time. Practice at your level, or learn English in your own language.

Start vocabulary practice

C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

Test yourself on “OTE” A quick quiz — meaning, synonyms & usage →

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.

Origin: English

Synonyms

View more →

on-target earnings total target compensation OTC

Related words

OTC over the counter Rx

Rhymes for OTE

vote note rote dote tote wrote quote remote coyote capote peyote devote

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.

What is the meaning of 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.

People also searched

OTC over the counter Rx