Paid Time Off (PTO)

Meaning & Definition

Paid Time Off (PTO)

PTO, short for "Paid Time Off," signifies the duration an employee can be absent from work yet receive regular pay. This allowance covers various forms of leave, such as vacation days, sick leave, personal days, or any other authorized absence sanctioned by the employer. PTO policies vary between companies and may be accrued based on length of service or provided as a fixed annual allowance.