PTO Policy Template
A paid time off (PTO) policy template covering accrual, requests, approvals, carryover, and payout so your time-off rules are clear, fair, and consistent.
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What you get
- Ready-to-adopt PTO policy prose with purpose, scope, and eligibility
- Accrual, carryover, and payout rules you can tune to your model
- A request-and-approval workflow employees and managers can follow
- An editable fields block for company name and effective date
Template preview
The structure, not the finished file. The PDF and CSV carry the complete version.
Policy details
- Company name
- Effective date
- Policy owner— e.g. Head of People
1. Purpose
[Company name] provides paid time off (PTO) so employees can rest, manage personal matters, and return to work refreshed. This policy explains how PTO is earned, requested, approved, and paid, and applies in addition to any public holidays and statutory leave entitlements.
2. Scope & eligibility
This policy applies to all [full-time / part-time / regular] employees of [Company name]. Part-time employees accrue PTO on a pro-rata basis. Contractors and temporary staff are covered by the terms of their individual agreements. PTO begins to accrue from the employee's start date unless a probationary waiting period is stated below.
3. How PTO is earned
Employees accrue [X] days of PTO per [year / month / pay period], up to an annual entitlement of [X] days. Accrual is calculated on hours worked for hourly staff and on a flat monthly basis for salaried staff. Newly hired employees may be subject to a [30 / 60 / 90]-day waiting period before PTO can be taken, though accrual still begins on day one.
4. Requesting and approving PTO
Plan ahead where possible so teams can cover the work.
The preview stops here; the template continues in the download.
How to use this template
- Set your model. Decide between accrued, front-loaded, or unlimited PTO, then keep the matching rules and delete the rest.
- Localize the rules. Adjust accrual rates, carryover caps, and payout terms to match your jurisdiction and pay practices.
- Publish and acknowledge. Add it to your handbook, brief managers on approvals, and collect a written acknowledgement from staff.
Frequently asked questions
What should a PTO policy include?
A PTO policy should cover six things: its purpose, who is eligible (full-time, part-time, probation), how PTO is earned (accrual rate or front-loaded amount, plus any tenure tiers), how to request and approve time off (notice period and manager response time), carryover and payout rules, and rules such as whether PTO can be taken before it is accrued and whether it accrues during unpaid leave. Many US employers start at 10 to 15 days (80 to 120 hours) a year.
Should PTO be accrued or front-loaded?
Accrual spreads entitlement across the year and limits payout liability, which suits hourly or high-turnover teams. Front-loading gives the full balance up front and is simpler to administer. Pick the model that matches your cash flow and culture.
Do we have to pay out unused PTO when someone leaves?
It depends on the state. California, Colorado, Illinois, Massachusetts, Montana, and Nebraska require payout of earned, unused vacation; elsewhere, your written policy usually controls. Confirm local law before setting your payout rule.
How is this different from sick leave?
PTO is general-purpose time off the employee schedules in advance. Sick leave is for illness and often carries separate statutory rules. Many companies keep them as distinct policies to stay compliant.