Paid time off (PTO) policies that advertise "15 days per year" behave very differently in practice depending on whether the hours arrive via lump sum on January 1, per pay period, or per hour worked.
Three Accrual Schedules Compared (120 Hours/Year Target)
- Per biweekly paycheck (26 pay periods):
120 / 26 = 4.6154 hoursearned every two weeks. Halfway through the year (13 paychecks), the employee has accrued 60 hours (7.5 days). - Per semi-monthly paycheck (24 pay periods):
120 / 24 = 5.00 hourstwice a month. Notice that biweekly employers sometimes create a "27-paycheck year" every ~11 years, shifting annual accrual by 4.6 hours unless capped. - Per hour worked (2,080 baseline hours):
120 / 2,080 = 0.05769 hoursof PTO per regular hour worked — roughly 1 hour of PTO per 17.33 hours on the clock.
Carryover Caps and "Use-It-or-Lose-It" Boundaries
When a policy sets a maximum bank cap (e.g., 160 hours), accruals freeze as soon as balance == cap. Taking a single 16-hour break before hitting the cap preserves future per-paycheck accruals that would otherwise be forfeited.
To model accrual per pay period, remaining balance after planned leave, and cap headroom step by step, try the Miryori PTO Calculator.
Note: Examples are illustrative only; employer handbooks and state payout statutes govern final PTO balances.