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What is PTO? Here’s a Comprehensive Guide to Understanding PTO

Updated: Nov 10, 2022

What is PTO

Let’s begin by painting a clear picture of what paid time off (PTO) is and isn’t — starting with what it’s not.

In the past, companies would separate their employees' time off benefits into a set number of days for sick leave, paid vacation, personal days, etc. Once you used all the days in a specific category, that was it for the year.

But PTO is totally different now in that it’s an all-encompassing policy.

So instead of having several separate policies, PTO rolls them all into one nice, neat, ‘ all-inclusive plan. It's the one benefit that employees really care about. In fact, it’s one of the top 3 most important employee benefits according to Harvard Business Review.