Glossary

Paid Time Off (PTO)

Paid leave employees can use for any reason — often combining vacation, personal, and sometimes sick days.

Paid Time Off (PTO) is an employer-provided bank of paid days employees can take away from work. Many companies pool vacation, personal, and sometimes sick time into a single PTO balance, giving staff flexibility in how they use it.

PTO is typically earned through accrual (gradually, as you work) or granted as a lump sum at the start of a period. Balances are then reduced as time off is approved and taken.

Example: An employee with 15 days of annual PTO who has taken 5 days has 10 days remaining.

In Orvella: Orvella tracks every PTO balance on an auditable ledger, so the number is always accurate and explainable.

Related terms

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