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Definition of Paid time off:

Paid time-off, or PTO is a benefit offered to employees where they can take time off from work and still get paid for the day. This includes vacation days, sick leaves, or personal time off. Every company has a time-off policy of their own, which provides details on accrual, rollover, PTO banks, etc. Usually, the annual paid time-off offered to employees depends on employees’ experience at the workplace.

What are the pros and cons of Paid time-off?


  • Employees who stay away from home for work can spend some more time with their families and friends during vacation
  • It is a great recruitment incentive
  • Employees can use it for emergencies, unpredictable situations
  • When employees get a chance to take shorter vacations, they feel refreshed and come back to work happier.


  • If the employee exhausts their PTO, they are forced to work even sick or take loss of pay.

  • When a bunch of employees decide to take the same days off, it becomes difficult to manage work and achieve your goals on time.

  • Companies have to honour the paid-time off accruals even when the employee resigns.