How PTO Accrual Works
Accrual spreads a yearly allowance across the year, so time off is earned as it is worked instead of granted all at once on January 1.
- Yearly hours = days per year × hours in a workday
- Per pay period = yearly hours ÷ pay periods in a year (52, 26, 24 or 12)
- Per hour worked = yearly hours ÷ (hours worked per week × 52)
- Balance on a date = today’s balance + accrual for each pay day until then − PTO used, never above the cap
Worked Example
An employee gets 15 days of PTO a year, works 8-hour days and is paid every two weeks.
- 15 days × 8 hours = 120 hours a year.
- 120 hours ÷ 26 pay periods = 4.62 hours of PTO each paycheck.
- Per hour worked: 120 ÷ (40 × 52) = 0.0577 hours — about 1 hour of PTO for every 17.3 hours worked.
Frequently Asked Questions
How is PTO accrual calculated?
Turn the yearly allowance into hours (days × hours per day), then divide by the number of pay periods in a year — 52 weekly, 26 biweekly, 24 semi-monthly or 12 monthly. For accrual per hour worked, divide the yearly hours by the hours worked in a year (hours per week × 52).
How many hours of PTO is 15 days a year, paid biweekly?
15 days × 8 hours = 120 hours a year. 120 ÷ 26 pay periods = about 4.62 hours each pay period.
What does “1 hour for every 30 hours worked” mean?
It is accrual per hour worked — the rate many sick-leave laws use. Someone working 40 hours a week for 52 weeks earns 2,080 ÷ 30 = about 69 hours a year.
What is a PTO cap?
A cap is the most PTO a balance can hold. Once it is reached, nothing more accrues until some time is used. Caps stop balances growing without limit and are allowed in most US states, even where use-it-or-lose-it policies are not.
What is carry-over?
Carry-over is how much unused PTO moves into the next year. Some employers allow all of it, some a fixed number of days, and some none. A few states, such as California, don't allow unused vacation to be lost, so a cap is used instead.
Do part-time employees accrue PTO?
Only if the employer’s policy or a local law says so. Accrual per hour worked handles part-time staff naturally — fewer hours worked means less PTO earned.