What accrual means
Accrual means earning PTO gradually as you work, instead of receiving a lump sum on day one. If your policy gives 80 hours a year, you do not have 80 hours in January — you build up to it over the year.
There is no federal law requiring paid vacation. The Fair Labor Standards Act does not require pay for time not worked, so accrual rates, caps and payout are set by your employer's policy and, in some states, by state law.
The three common accrual methods
1. Per pay period
The same amount is added every paycheck:
Hours per pay period = annual PTO hours ÷ pay periods per year
| Pay frequency (periods) | 40 hrs/yr | 80 hrs/yr | 120 hrs/yr | 160 hrs/yr |
|---|---|---|---|---|
| Weekly (52) | 0.77 | 1.54 | 2.31 | 3.08 |
| Bi-weekly (26) | 1.54 | 3.08 | 4.62 | 6.15 |
| Semi-monthly (24) | 1.67 | 3.33 | 5.00 | 6.67 |
| Monthly (12) | 3.33 | 6.67 | 10.00 | 13.33 |
80 hours a year is two weeks of full-time days; 120 hours is three weeks.
2. Per hour worked
Common for part-time and hourly staff. You earn a fraction of an hour for every hour worked:
Accrual rate = annual PTO hours ÷ 2,080
2,080 is a full-time year (40 hours × 52 weeks). For 80 hours a year, the rate is 0.0385 hours per hour worked — about 1 hour for every 26 hours. Someone working 25 hours a week earns about 0.96 hours a week at that rate.
| Annual PTO (full-time) | Per hour worked | Roughly 1 hour for every |
|---|---|---|
| 40 hours | 0.0192 | 52 hours worked |
| 80 hours | 0.0385 | 26 hours worked |
| 120 hours | 0.0577 | 17.3 hours worked |
| 160 hours | 0.0769 | 13 hours worked |
3. Front-loaded
The full year's allowance is granted at the start of the year or on your anniversary. Nothing to calculate — but if you leave early, check whether your policy says unearned time you already used can be deducted.
Caps and carryover
- Accrual cap. Once your balance hits a ceiling, often 1.5 or 2 times the annual amount, you stop earning more until you use some. Caps are lawful even in states that protect earned vacation, because they stop future accrual rather than removing what you have.
- Carryover limit. A limit on how much unused time rolls into the next year.
- Use it or lose it. Unused time is forfeited at year end. This is allowed in many states but prohibited in some. California, for example, treats vacation as wages that vest as you earn it, so a use-it-or-lose-it policy is illegal there; Colorado, Montana and Nebraska are also commonly identified as prohibiting forfeiture.
Payout when you leave
No federal law requires unused PTO to be paid out. Some states require accrued, unused vacation to be paid on separation regardless of the handbook — commonly listed are California, Colorado, Illinois, Indiana, Louisiana, Maine, Massachusetts, Nebraska and North Dakota. Elsewhere, your written policy usually decides: a clear promise to pay out is generally enforceable. Check your state labor department for the current rule.
PTO versus sick leave
Many states and cities now require paid sick leave, often at a rate of one hour for every 30 hours worked. Some employers meet that with a combined PTO bank; others keep sick leave separate. Sick-leave laws have their own rules on carryover and payout, which usually differ from vacation.
Work out your balance. The PTO accrual calculator takes your accrual rate, pay periods or hours worked, time used and any cap, and shows your balance in hours and days.
This guide describes common PTO practices and general state rules. It is not legal advice; your employer's written policy and your state's law decide what you are owed.
Common questions
How is PTO accrual calculated per pay period?
Divide your annual PTO hours by the number of pay periods in a year. 80 hours a year paid bi-weekly is 80 divided by 26, or about 3.08 hours per paycheck.
How much PTO do I earn per hour worked?
Divide your annual PTO hours by 2,080. For 80 hours a year, that is about 0.0385 hours of PTO per hour worked, or roughly 1 hour for every 26 hours.
Is my employer required to give me PTO?
Not under federal law. Paid vacation is a matter of employer policy, though some states and cities require paid sick leave.
Do I get paid for unused PTO when I quit?
It depends on your state and your policy. Several states, including California, require accrued vacation to be paid out; elsewhere your written policy usually decides.