PTO Explained
Paid time off (PTO) is a flexible time-off policy that consolidates different types of employee leave—such as vacation days, sick time, and personal leave—into a single, all-purpose bank of hours. Rather than assigning specific time off for different purposes, employees receive a set number of days or hours they can use however they choose.
For example, instead of providing:
- 10 vacation days
- 5 sick days
- 3 personal days
A company with a combined PTO policy might offer 18 PTO days total, giving employees the freedom to use their time off as they see fit—whether they’re sick, need a mental health day, or want to take a vacation.
