Paid Time Off Definition

Term Definition
Paid time off is an employee leave program under which employees can draw from a leave bank (with a set number of leaves) and be assured of a predetermined pay for their days off.

Extended Definition
Most employers offer paid time off (or PTO) to their employees, through which a certain amount is accrued and paid to employees on the basis of their leave quota. PTO can be in the form of sick leave, holidays, vacations, and personal leaves. The number of days off usually accumulates through the years of service.

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