Unlimited PTO

What It Means

Unlimited PTO (paid time off) is a policy that replaces a fixed yearly vacation balance with time off taken as needed, usually after a manager approves the dates. SHRM, the Society for Human Resource Management, describes it as doing away with a set number of vacation days. Without a number to aim for, some employees end up taking less time than they would under a traditional allowanceAllowanceA set amount of money a child gets on a regular schedule to manage, often with an agreement about what it has to cover. See more, which SHRM reports early adopters found.

How People Say It at Work

• "We have unlimited PTO, but nobody takes more than a week."
• "How much time off do people actually take here?"
• "I put my vacation in for August so it's on the books."

The Breakdown

Worked example. Priya's last job gave 15 vacation days. Her new job has unlimited PTO and closes for 8 public holidays. In January she plans 1010,000 stepsA popular daily step goal that began as the name of a 1960s Japanese pedometer; later studies find health benefits begin well below it. See more days off: a week in summer and a long weekend each season.

What the result means. Priya is planning 5 fewer days than her old balance. With no number on a pay stub, nothing reminds her that days are going unused. Writing a target into her calendar gives her the reference point the policy leaves out.

How to use an unlimited policy (Buhata's suggestion)

1. Ask HR or your manager how many days people on your team usually take, and whether there's a minimum.
2. Pick your own yearly target, using your last fixed allowance as a floor.
3. Put the big blocks on the calendar early and request them in writing.
4. Check how the policy handles sick daysSick leaveTime off work an employer allows when you're ill, injured or caring for your health, paid or unpaid depending on the employer's policy and state or local law. See more, and whether they come out of the same time off.

Good to Know

No federal law defines unlimited PTO. The Department of Labor says the Fair Labor Standards Act doesn't require pay for time not worked, vacations included, so the details come from your employer's written policy. Read it for approval rules, blackout periods and how notice works. If you're leaving a job, ask HR how the policy treats time off when you go.

Related Terms and Categories

• Sick leave

  Time off work an employer allows when you're ill, injured or caring for your health, paid or unpaid depending on the employer's policy and state or local law.

• Burnout at work

  Exhaustion, cynicism about your job and a drop in how effective you feel, which WHO links to chronic workplace stress that hasn't been managed.

• Work-life balance

  How your time and energy divide between paid work and the rest of your life, such as family, rest, health and interests.

• Boundaries at work

  Limits a person sets and tells others about at work, covering their time, workload, availability and how they're treated.

• Total compensation

  The full value of what an employer pays for your work in a year: base pay plus bonuses and the employer's spending on benefits such as insurance and retirement.

Work, career and remote life