Glossary

PTO Accrual

PTO accrual is how paid time off builds up over time instead of being granted all at once. Employees earn a set amount of leave per period worked - for example, a few hours per pay period or a number of days per month.

How it works

  • Pick an accrual rate (per hour worked, per pay period, or per month).
  • Add the balance each period, subtract approved leave, and apply any cap.
  • At year end, unused days may carry over, be paid out, or expire.

The alternative is a lump-sum grant, where the full annual leave entitlement is available from the start of the year.

Why it matters

Accrual keeps balances fair as people join, leave, or change hours mid-year, and it prevents someone taking a full year of leave before they have earned it. It only works if worked time and leave are recorded accurately.

How Sandtime.io fits

Sandtime.io keeps the hours and approved time off that an accrual policy depends on in one reviewable record. Model a policy first with the PTO accrual calculator.

PTO accrual is how paid time off and annual leave build up, and it sets the balance available for carryover.

Related Terms

Explore other time tracking and workforce management definitions.

Paid Time Off (PTO)

Paid leave an employee can take while still being paid, such as vacation, personal days, and often sick days, usually pooled into one bank of days.

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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 Carryover

Unused paid time off that rolls from one period into the next instead of being lost, usually with a cap and a deadline to use it.

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