PTO Accrual
The method by which employees earn paid time off over time.
Definition
PTO accrual is the process by which employees accumulate paid time off based on hours worked, pay periods, or tenure. Common accrual methods include hourly (1 hour per X hours worked), per pay period (X hours per paycheck), or annual (lump sum at the beginning of the year). Accrual rates often increase with employee tenure to reward loyalty.
Examples
- • Hourly accrual: 1 hour of PTO per 30 hours worked
- • Per pay period: 4 hours of PTO per bi-weekly paycheck
- • Annual front-load: 80 hours credited on January 1
Quick Facts
- Term
- PTO Accrual
- Category
- Calculations
Helpful Resources
Explore More Terms
Accrual Rate
The rate at which employees earn leave time.
Hours Worked
Time counted toward leave accrual and eligibility.
Average Weekly Wage
Calculation used to determine leave benefit payments.
Negative PTO Balance
When an employee uses more leave than they've accrued.
PTO Payout
Payment for unused leave at termination.
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