Understanding PTO Accrual Rates
An accrual rate is the exact amount of paid time off an employee banks for every unit of time worked or for each completed payroll cycle. Employers determine this rate by dividing the employee's annual PTO entitlement by the number of pay periods in the payroll calendar.
Common Annual Accrual Rates by Schedule
| Annual Allotment | Weekly (52 periods) | Biweekly (26 periods) | Semi-Monthly (24 periods) | Hourly (2,080 hrs) |
|---|---|---|---|---|
| 80 Hours (10 Days) | 1.54 hrs | 3.08 hrs | 3.33 hrs | 0.0385 hrs/hr |
| 120 Hours (15 Days) | 2.31 hrs | 4.62 hrs | 5.00 hrs | 0.0577 hrs/hr |
| 160 Hours (20 Days) | 3.08 hrs | 6.15 hrs | 6.67 hrs | 0.0769 hrs/hr |
| 200 Hours (25 Days) | 3.85 hrs | 7.69 hrs | 8.33 hrs | 0.0962 hrs/hr |
Hourly vs. Pay-Period Accrual Methods
While salaried full-time exempt employees usually accrue on a flat per-paycheck basis, hourly and non-exempt employees frequently accrue on an hours-worked model. In the hours-worked model, you only earn PTO on actual hours clocked. Overtime may or may not be eligible for PTO accrual depending on company policy and state statutory mandates.