PTO Policy Examples - Sample Paid Time Off Policies
Examples of common PTO policies including traditional accrual, tiered systems, unlimited PTO, and annual allocations. Reference guide for understanding different paid time off policy structures.
Traditional Accrual Policy
Example: Employees accrue 0.0385 hours per hour worked (equals 80 hours/year). Accrual starts day one. Maximum carryover: 40 hours. Unused PTO above cap expires. Payout on termination per state law. Common in: Manufacturing, retail, traditional corporate.
Tiered Accrual by Tenure
Example: 0-2 years: 10 days/year. 3-5 years: 15 days/year. 6-10 years: 20 days/year. 10+ years: 25 days/year. Accrual monthly or per pay period. Full carryover allowed. Common in: Large corporations, finance, healthcare.
Unlimited PTO Policy
Example: No set allocation. Time off with manager approval based on business needs. No tracking of accrued hours. No payout at termination. Expectation: "Take time when you need it" but don't abuse. Common in: Tech startups, modern companies, remote-first.
Annual Allocation Policy
Example: 15 days front-loaded on January 1 (or anniversary date). No accrual tracking. Prorated for new hires. Capped carryover: 5 days. Use-it-or-lose-it for excess. Common in: Mid-size companies, professional services.