Paid time off, or PTO, has evolved beyond simple vacation time to become a key element of an employee’s benefits package. In today’s job market, offering attractive PTO options is almost as essential as providing comprehensive health insurance. Understanding what is the average PTO in the US is crucial for businesses to attract and retain employees. This article will break down the average PTO in the US and provide guidance on creating a fair and competitive time off policy that supports your business goals.
Key Takeaways
- For the private sector, the average PTO is 11 to 14 days for employees who have completed one year of service.
- Several factors can influence paid time off, such as industry, tenure, and PTO plan type.
- There is no federal law mandating PTO, but some states have specific paid leave laws.
- Providing above-average PTO days can improve employee retention and reduce staff burnout.
PTO benefits in the US
The average PTO in the US varies depending on factors like employee tenure, company size, and the industry your business belongs to. The type of PTO policy also impacts the number of days off employees have per calendar year. Your time off policy can be:
- A consolidated or single bank of PTO days that workers can use as they wish, or
- Separate credits for paid vacation, sick, and personal leaves
Based on tenure
Private-sector workers receive 11 paid vacation days after one year of service, according to the March 2024 employee benefits data of the U.S. Bureau of Labor Statistics (BLS). This number typically increases with tenure, reaching an average of 15 days after five years and 20 days after 20 years of service.
For private-sector companies that offer a consolidated leave plan This includes both vacation and sick leave days. , the average PTO is 14 days after one year of service, according to the BLS. The leave credits can reach up to 23 days after 20 years of service.
Here’s a detailed breakdown of the vacation leave and consolidated leave plans for the private sector based on tenure.
Employee tenure | Average vacation Leave | Average consolidated leave |
|---|---|---|
After one year | 11 days | 14 days |
After five years | 15 days | 18 days |
After 10 years | 18 days | 20 days |
After 20 years | 20 days | 23 days |
By company size
The March 2024 BLS report also shows the differences in average PTO days for small to large businesses. Below is the breakdown of vacation and consolidated leave days by company size.
Average vacation leave
Worker Count | After One Year | After Five Years | After 10 Years | After 20 Years |
|---|---|---|---|---|
1 to 49 | 10 days | 13 days | 16 days | 17 days |
50 to 99 | 10 days | 14 days | 17 days | 18 days |
100 to 499 | 11 days | 16 days | 19 days | 21 days |
500 and more | 14 days | 18 days | 21 days | 24 days |
Average consolidated leave
Worker Count | After One Year | After Five Years | After 10 Years | After 20 Years |
|---|---|---|---|---|
1 to 49 | 12 days | 16 days | 18 days | 20 days |
50 to 99 | 12 days | 17 days | 20 days | 21 days |
100 to 499 | 13 days | 17 days | 20 days | 23 days |
500 and more | 17 days | 21 days | 24 days | 26 days |
By industry
Knowing what is the average PTO in the US for your industry is important because it allows you to benchmark your company’s paid time off policy against competitors. This approach ensures that you remain attractive to top talent while improving employee engagement and satisfaction levels.
The Excel dataset file included in the same BLS report has over a dozen industries with PTO data the covers an employee’s different years of service. Click the tabs below to see the vacation and consolidated leave days of key industries.
Did you know? Apart from the above factors, there are other ways to determine the amount of leave days to give. 77% of organizations that joined SHRM’s 2024 Benefits Survey look at employee tenure, but 45% use number of hours worked. Meanwhile, 28% consider the employee level in computing leave credits.
PTO legal requirements
In the US, employers are generally not required by federal law to provide PTO. Some local jurisdictions or states, like California or New York, mandate paid sick leave or other specific leave types. However, PTO policies, including vacation time, are usually determined at the employer’s discretion.
It’s important to check federal, state, and local laws to ensure compliance. Read our guide to the different sick leave laws by state to find out if you need to set up a specific PTO policy for your company.
Best practices for creating a PTO policy
To develop an effective PTO policy, consider these factors:
- Define the different PTO types: If you offer different types of PTO, create separate policies for each and clearly outline the entitlements and usage. This way, employees clearly know which ones to use for specific circumstances, such as for vacation, sick time, or bereavement leave.
- Establish PTO request and approval processes: Your PTO policy should also include the standard process for submitting requests, including how far in advance it should be requested and who will approve the transaction. You can use a time off request form or utilize an online system to streamline the process. For options, check out our guide to the best leave management software.
- Decide between accrued vs upfront PTO: You should determine how to allot PTO credits to employees. Will they earn this gradually based on number of hours or days worked? Or will you provide them a set PTO balance at the beginning of the calendar year? After you decide which method to use, include it in the applicable PTO policies.
- Identify PTO rollover, expiration, and payout rules: Don’t forget to define PTO rollover rules if you allow employees to carry over their unused PTO or vacation days to the next calendar year. Also, clearly indicate when leave credits will expire and whether unused PTO will be paid out upon resignation, termination, or retirement. Note that some states prohibit the expiration of earned PTO in certain cases (usually termination), so check state laws if you need to pay out the unused PTO days.
- Ensure legal compliance: Check local and state PTO-related laws or consult with legal professionals to minimize compliance risks and ensures fair treatment of employees. You can also use HR or payroll software as these tools typically include compliance support to keep you updated on changing PTO laws across different states. For product comparisons, read our payroll software buyers guide.
For more tips, check out our how to create a PTO policy article. It even includes a paid time off policy template you can download for free.
Frequently asked questions (FAQs) about PTO
Offering PTO boosts employee morale and attracts top talent by demonstrating that you value work-life balance. It also increases staff productivity as employees generally return to work refreshed and more focused.
No, they don’t. According to an Eagle Hill Survey1, 48% of US employees do not expect to take all of their allotted vacation days by the end of the year. Sadly, 36% of US workers have not taken a vacation in the past 12 months.
Yes. Data from a Mercer survey2 shows that two-thirds of employers offer PTO plans that combine vacation with incidental absence or sick day leaves.
