How PTO Accrues - Understanding Accumulation
Learn how paid time off accumulates over time. Understand different accrual methods, what affects your accrual rate, and how to maximize your PTO benefits.
What is PTO Accrual?
PTO accrual is the process of earning paid time off over your employment. Instead of receiving all your PTO at once, you accumulate it based on time worked. This ensures fair distribution and prevents new employees from using excessive time immediately.
Common Accrual Methods
Per-hour: Earn PTO for each hour worked (e.g., 0.0385 hours per hour). Per-pay-period: Fixed amount each paycheck (e.g., 3.08 hours bi-weekly). Monthly: Fixed amount per month (e.g., 6.67 hours). Annual front-loading: Full balance available January 1.
Factors Affecting Accrual
Accrual rates often depend on: tenure (more years = higher rate), full-time vs part-time status, employee level or position, and company policy. Some employers increase accrual after 1, 3, 5, or 10 years of service.
Accrual Caps
Many employers cap how much PTO you can accumulate. Once you reach the cap (e.g., 240 hours), you stop accruing until you use some. This encourages regular use of PTO and manages liability.