Accrual Cap
Also known as: accrual limit, maximum balance
An accrual cap is the maximum leave balance an employee can build up; once reached, no further leave accrues until some is used.
An accrual cap is a ceiling on how much leave an employee can bank. When the balance hits the cap, accrual pauses — the employee stops earning new days until they take leave and drop below the limit again.
Caps discourage hoarding, encourage people to actually take time off, and limit the financial liability of large unused balances. They are common in PTO-style systems and are often paired with carry-over rules.
Related terms
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