PTO accrual

Paid time off earned per pay period.

Definition

PTO accrual is the mechanism by which paid time off is earned over the course of employment — typically a fixed number of hours added to the employee's PTO balance per pay period. Common accrual rates are 4 hours per biweekly pay period (104 hours / 13 days per year), 6.15 hours (160 hours / 20 days per year), and 7.69 hours (200 hours / 25 days per year). State law in California, Colorado, and several others limits an employer's ability to forfeit unused accrued PTO, treating it as earned wages owed at termination.

Example

An employee accruing 4 hours per biweekly pay period earns 104 hours (13 days) of PTO per year.

Related terms

• Pay period — The recurring window of time covered by a single paycheck.
• Pay frequency — How often paychecks are issued.
• Payday — The calendar day wages are deposited.
• In arrears — Wages paid after the pay period ends.
• Biweekly — Every other week — 26 paychecks per year.
• Semimonthly — Twice per month on fixed dates — 24 paychecks per year.

See also

• Pay schedule calculator — convert salary to per-paycheck amount
• Pay frequencies primer — weekly, biweekly, semimonthly, monthly
• Frequently asked questions