Glossary

Paid Time Off (PTO)

Paid time off (PTO) is any leave an employee can take while still being paid - vacation, personal days, and in many policies sick days - often pooled into a single bank of days.

How PTO works

  • A policy sets how much PTO people get and how they request it.
  • Days usually accrue over the year, or are granted upfront.
  • Unused days may carry over, be paid out, or be lost, depending on the policy and local law.

PTO is separate from public holidays: a public holiday is a non-working day for everyone, while PTO is time an individual chooses to take.

Why it matters

Clear time-off tracking keeps balances accurate, prevents disputes, and helps plan capacity around who is away. It also feeds cost and staffing forecasts.

How Sandtime.io fits

Sandtime.io records worked hours and time off in one place, so approved leave sits alongside the hours that reach reports and invoices - without surveillance. Estimate balances first with the PTO accrual calculator.

Paid time off covers annual leave and sick leave, builds up through PTO accrual, and can be banked with PTO carryover.

Related Terms

Explore other time tracking and workforce management definitions.

Annual Leave

The paid holiday an employee is entitled to each year for rest, with a statutory minimum in most countries (at least four weeks under the EU directive).

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PTO Accrual

How paid time off builds up over time - a set amount earned per period worked - instead of being granted all at once.

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Sick Leave

Time off taken because of illness or injury, usually paid and often protected by law, typically separate from vacation.

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Time Off in Lieu (TOIL)

Paid time off given instead of extra pay for overtime or work on a day off, also called comp time.

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