Unlimited PTO
Also known as: unlimited paid time off, open holiday
Unlimited PTO lets employees take as much paid time off as they want, subject to approval and performance, with no fixed annual allowance.
Unlimited PTO is a policy with no set cap on paid time off. Employees take leave as needed, provided their work is covered and managers approve, rather than drawing down a fixed balance.
It can boost trust and remove the year-end use-it-or-lose-it rush, and it eliminates accrued-leave payout liability. The risk is that, without a baseline, some employees take less leave than before, so good policies pair it with a minimum expectation and active encouragement to take time off.
Frequently asked questions
- Does unlimited PTO mean employees take more holiday?
- Not always. Studies and anecdotes suggest some people take less under unlimited PTO because there's no defined entitlement to 'use up'. Setting a minimum and tracking who hasn't taken leave helps counter this.
Related terms
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