PTO accrual is how employees earn paid time off over time. Common methods include:

  • Per pay period — e.g. 1.67 days per month (20 days per year)
  • Per hours worked — e.g. 1 hour PTO for every 30 hours worked
  • Tenure-based — higher accrual rates after certain years of service

The system calculates earned PTO, deducts approved requests, and applies carryover rules automatically. Manual spreadsheet formulas often break as teams grow — automated accrual tracking prevents balance disputes.