PTO banks award employees a specific number of days off with pay per year.

For example, there are three different methods of PTO banks: Accrual, Allotment and Unlimited

PTO Accrual: 

Most often, employers will set up an employee PTO bank to accrue in hourly increments throughout the year. For example, an employee with four weeks of paid time off per year would earn one week of paid time off each quarter. 

PTO Allotment: 

PTO allotment occurs when employers credit employees their entire PTO allowance at the beginning of the year, or on their work anniversary. 

Unlimited PTO:

Finally, unlimited PTO plans are structured so that employees decide when to take PTO and how to use PTO. The employer provides little-to-no parameters in this type of plan—as long as employees can accomplish tasks the organization expects, and the company does not suffer negative repercussions.

Related Terms: Floating Holidays