How PTO accrual is calculated
Most employers spread your yearly PTO across the year, so you earn a little each payday. Turn the allowance into hours, then divide by the number of paydays.
PTO per payday = yearly PTO hours ÷ paydays a year
With 15 days of PTO and 8-hour days, you get 15 × 8 = 120 hours a year. Paid every two weeks, that is 26 paydays, so you earn 120 ÷ 26 = 4.62 hours each payday.
Some employers instead accrue PTO for every hour you work, which is common for part-time and hourly staff. Divide the yearly PTO hours by the hours you work in a year. Full time is about 2,080 hours (40 × 52), so 120 ÷ 2,080 = 0.0577 hours per hour worked, or 1 hour of PTO for every 17.33 hours worked.
PTO accrual rate chart
Common allowances for a full-time, 40-hour week with 8-hour days:
| PTO a year | Every two weeks | Twice a month | Per hour worked |
|---|---|---|---|
| 10 days (80 h) | 3.08 h | 3.33 h | 0.0385 h |
| 15 days (120 h) | 4.62 h | 5.00 h | 0.0577 h |
| 20 days (160 h) | 6.15 h | 6.67 h | 0.0769 h |
| 25 days (200 h) | 7.69 h | 8.33 h | 0.0962 h |
Paid weekly, divide the yearly hours by 52; paid monthly, by 12. The calculator above does any combination.
Why your schedule changes the number
Being paid twice a month gives 24 paydays, while every two weeks gives 26. The yearly total is the same, but each payday's accrual differs: 120 hours a year is 5.00 hours twice a month and 4.62 hours every two weeks. Check which one your pay stub uses before comparing it with this calculator.
To see how a balance builds up toward a trip or the end of the year, use the PTO accrual calculator.
PTO rules to know
- Federal law does not require paid vacation. The Fair Labor Standards Act does not require pay for time not worked, so PTO is set by your employer's policy or your contract. See the Department of Labor's page on vacation leave.
- States can add rules. Many states and cities require paid sick leave, and some limit what happens to unused vacation.
- California is the strictest on vacation. Earned vacation counts as wages, so use-it-or-lose-it policies are not allowed, reasonable caps on accrual are allowed, and unused vacation must be paid out when you leave. See California's vacation FAQ.
- Caps stop accrual. If your policy caps your balance, you stop earning PTO once you reach it, so taking time off keeps accrual going.