We are considering revamping our PTO policy, specifically addressing how much PTO employees earn. We currently have tiers of PTO – first year employees earn installments of 8, 24, and 24 hours throughout their first year and 88 hours on their first anniversary. For years 2-4, employees earn 128 hours on their anniversary, for years 5-9, they earn 144 hours on their anniversary, and employees who have worked for 10+ years earn 168 hours of PTO. The question has been raised to us if we need to increase our PTO allotment for our long term employees, perhaps adding another tier at the 15-year mark. What do other companies use for PTO policies? Is this plan similar to your PTO accrual amounts?
My old job we had the following PTO policy: All unused PTO could be carried over until a balance of 200 hours was reached. Once you earned 200 hours you had to take time off in order to continue to accrue. All PTO was paid out upon termination.
0-3 years accrued up to 80 hours per year
3-5 years accrued up to 120 hours per year
5+ years accrued up to 160 hour per year
Accruals were earned each pay period.
In my current position we have several different policies, but they are all up front PTO policies where hours are dumped in January 1st of each year and it’s a use it or lose it policy.
After 1 year of employment – 15 days
After 7 years employment – 20 days