Accrual Bank

HR Glossary for HR Professionals

Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.

Accrual Bank

What is an Accrual Bank?

How should small and mid-sized employers structure their paid time off approach? This question can significantly impact the administration of PTO, and can also impact employee satisfaction.

Here’s what HR leaders should know about PTO Accrual Banks:

With the Accrual Bank approach, the policy is not based on a fixed date and there are no rollover days. Instead, employees accrue PTO, typically on a monthly or quarterly basis. There is usually a “positive limit” of accrual dates, after which no more days can be accrued until some are taken.

An example of this approach would be 10 days per year, accruing monthly, up to a limit of 20 days.

Related Terms: PTO, Accrual, 

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