What is Paid Time Off (PTO)?

Paid time off, commonly abbreviated as PTO, is the time employees take off work while receiving regular payments. It does not include times when the employee is telecommuting or working remotely. Typically, PTO policies will combine personal, sick, and holiday days.

Companies structure their paid time off policies depending on various factors – including the industry and size of the company. However, having a strong policy helps protect your bottom line by attracting and retaining top talent. Most employees also use PTO to boost morale and increase productivity while combating employee burnout.

Compared to the US where employees get an average of 15 PTO days per year, other European countries are much more generous. France requires employees to get a minimum of 30 paid-off days per year, the same as Spain. The United Kingdom comes close with 28, while Denmark, Austria, Norway, Sweden, and Finland all provide 25.