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What does OTE mean for salary?

By Zippia Team - Sep. 7, 2022

OTE means "On Target Earnings" and is the total amount of money an employee can make if they hit all of their performance targets. OTE stands for the total anticipated pay of an employee; this includes their base salary, commissions, and expected bonus amount.

Companies use OTE as a motivational tool to get their employees to achieve certain goals. OTEs may be given as one lump-sum payment, as commission percentages, or as a mixture of both.

The amount of OTE a company plans to give depends on the competitiveness of the specific industry, the company's gross revenue, and the experience level of a particular employee.

What does OTE mean for salary?

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