How does PTO accrual work?

PTO accrual is how employees earn paid time off over time rather than receiving it all at once. **Common Accrual Methods:** 1. **Hourly Accrual:** Earn PTO per hour worked - Example: 1 hour PTO per 40 hours worked = 52 hours/year for full-time 2. **Per Pay Period:** Fixed amount each paycheck - Example: 4 hours per bi-weekly pay period = 104 hours/year 3. **Monthly Accrual:** Fixed amount per month - Example: 8 hours per month = 96 hours/year 4. **Annual/Front-Loaded:** Full amount granted at once - Example: 120 hours on January 1 each year **Key Concepts:** - **Accrual Cap:** Maximum PTO that can accumulate (e.g., 240 hours) - **Carryover Limit:** How much can roll to next year - **Waiting Period:** Time before accrual begins (often 30-90 days) Most employers increase accrual rates with tenure to reward loyalty.