Are part-time employees converted into full-time equivalents?

No. Full-time and part-time employees are normally counted as whole people, not converted into full-time equivalents, for this statutory monthly average.

Does meeting the employee threshold decide company size?

No. Employees are one of three size criteria. Turnover, balance sheet total, the two-out-of-three test, consecutive-year rules, group status and eligibility restrictions can also affect the result.

Average Number of Employees Calculator

Q: Do directors count as employees?

A director may count where they are also employed under a contract of service for an operational role. A director receiving only director fees without an employee relationship will not normally count. The contractual facts should be reviewed.

Q: What if a company has no employees?

Enter zero for each monthly period. A company with no employees may still need to disclose an average number of zero in its accounts.

Calculate the statutory monthly average employee number for UK company accounts and the employee element of company-size tests.

Scope: This calculator calculates the overall statutory average employee number using the monthly whole-person method in sections 382(6) and 411 of the Companies Act 2006, and assists with the company-size employee criterion. It is not a payroll average or an FTE calculation. It does not calculate the separate employee-category or staff-cost disclosures required of companies outside the small companies regime, and the result alone does not determine company size, audit exemption or group status.For the full assessment, use the UK Company Size Checker or Group Company Size Checker.

Step 1

Enter the accounting period

The calculator will create one row for each monthly period. Use the headcount of people employed under contracts of service at any time during that period.

Step 2

Enter each monthly headcount

Do not use FTEs.Count full-time and part-time staff as whole people. Include a person if they were employed under a contract of service at any time during the relevant monthly period.

Who should I include?

Generally include full-time, part-time, fixed-term, zero-hours and apprentice employees where the company employs them under a contract of service. Include an employee who joined or left during the period; do not pro-rate for days or hours. Executive directors count where they also have a contract of service. Normally exclude self-employed contractors, volunteers, agency workers employed by the agency, employees of another group company and non-executive directors who are office-holders only. Intern and work-experience labels do not determine status: check the actual arrangement.

Use detailed entry by staff category

Enter one whole-person headcount for each monthly period.

Paste several monthly totals

Paste one whole number per period, separated by spaces, commas or new lines. This option works in standard entry mode.

Monthly period	Employees	Full-time	Part-time	Apprentices	Other included	Monthly total

Who to include

Count people, not full-time equivalents

The key question is whether the person was employed by the company under a contract of service during the monthly period. Employment status depends on the facts, not only the label used.

Director point: include a director where they are also an employee under a contract of service for an operational role. A person receiving only director fees without an employee relationship will not normally be included.

Person	Typical treatment
Full-time employee	Include as one person.
Part-time employee	Include as one person; do not convert to an FTE fraction.
Fixed-term or zero-hours employee	Include where employed by the company under a contract of service.
Apprentice	Include where employed by the company under the apprenticeship arrangements.
Executive director	Include where separately employed under a contract of service.
Non-executive director	Normally exclude where an office-holder only, unless separately employed.
Agency worker	Normally exclude where employed or contracted by the agency, but check the facts.
Another group company's employee	Normally exclude from the standalone company count where the employment contract is with the other entity, even if costs are recharged.
Self-employed contractor or volunteer	Normally exclude unless the individual is in fact employed by the company under a contract of service.
Intern or work-experience participant	Review status and contractual reality; the label alone does not determine whether they are an employee.

FAQs

Average employee number questions

Practical points for accounts preparation and company-size work.

How is the average number of employees calculated?

Add the number of people employed under contracts of service in each month of the financial year, including anyone employed for any part of that month, then divide by the number of months in the financial year.

Should part-time staff be converted into FTEs?

No. For this statutory average, full-time and part-time employees are counted as whole people rather than full-time equivalents.

Do directors count as employees?

A director can count where they are also employed under a contract of service for an operational role. A director receiving only fees without an employee relationship will not normally count. Review the contractual and working arrangements.

What if the company has no employees?

Enter zero for every monthly period. A company with no employees may still need to disclose an average employee number of zero in its accounts.

How are group employee numbers handled?

This calculator produces a single-company monthly average. Group calculations require the relevant figures for each group company and careful treatment of people with contracts across more than one entity. Use the Group Company Size Checker only after establishing the appropriate group employee figure.

How does the calculator handle partial or unusual months?

The Act specifies a monthly average but does not prescribe this tool’s row-generation interface. The calculator uses anniversary-based monthly periods, keeps a month-end start anchored to month-end, and shows a final incomplete period as a separate row included in the denominator. Review unusual periods against the company’s facts and obtain advice where needed.

Sources and methodology

Sections 382(6) and 411 of the Companies Act 2006 use a month-by-month employee average based on people employed under contracts of service, whether employed throughout the month or not. ICAEW’s technical helpsheet explains the whole-person approach and rounding up for the company-size threshold where the result is not a whole number.

Companies Act 2006, section 382: company size Companies Act 2006, section 411: employee disclosure ICAEW: Calculating employee numbers Companies House: accounts and company-size guidance GOV.UK: Employment status GOV.UK: Employment rights for interns

Source review completed 23 August 2026. This calculator provides general guidance and does not decide employment status or replace professional advice.

Average Number of Employees Calculator

Enter the accounting period

Enter each monthly headcount