OTE stands for “On Target Earnings” and is most common in sales, recruitment, and business development roles. It represents the total annual pay you would receive if you hit 100% of your targets — combining base salary with commission or bonus.
How OTE works
If an advert says “OTE £45,000”, that might break down as £25,000 base salary plus £20,000 commission at 100% target achievement. The base is guaranteed; the commission is not. “Uncapped commission” means there is no ceiling on earnings if you exceed targets, which sounds attractive but also means the base alone may be quite low.
What to watch out for
Always ask for the base salary separately. An OTE of £60,000 sounds impressive, but if the base is £22,000 and only 10% of the team actually hits target, the realistic earnings are much lower. Ask what percentage of the team achieves OTE and what the average actual earnings are. Reputable employers will share this data.
Questions to ask
- What is the base salary before commission?
- What percentage of the team currently achieves OTE?
- How are targets set, and how often do they change?
- Is there a ramp-up period with guaranteed earnings for new starters?
