Paid Time Off (PTO)

Paid time an employee can take away from work without losing their normal salary.

Benefits

PTO can include vacation, personal days, or other paid absences. You need to distinguish company-provided PTO from leave that local law already requires.

What PTO Can Include

  • Annual vacation
  • Personal days
  • Floating holidays
  • Additional company leave
  • Mental health days

Sick leave and parental leave often have separate statutory rules.

PTO Differs by Country

The US has no general federal requirement for paid vacation. The UK and Australia provide statutory annual leave. Southeast Asian countries also set different minimum leave entitlements.

Your global PTO policy cannot reduce any employee's local Statutory Benefits.

How to Stay Compliant

Track entitlement, leave taken, carry-forward rules, and termination balances. An Employer of Record can apply the correct local minimum while you provide additional PTO.

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