HR Glossary / PTO

PTO (paid time off), or personal time off, refers to compensated time off of work. It includes absences for various reasons such as vacations, sick days, and personal time away from work.


What Is the Difference Between PTO and Vacation?

Although the terms PTO and vacation are often used interchangeably, there is a slight distinction to be made: PTO includes vacation days, while vacation does not necessarily include PTO.

Vacation, or paid vacation days, refers to any time off that has to be given to an employee in accordance with local laws.

PTO instead includes days off that are required by the law as well as any other additional time off offered by the employer, including sick days, personal time off, additional days of vacation.

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