Bank of days off that combines vacation, sick, and personal time into one bucket.
Common paystub code: PTO / VAC
PTO (Paid Time Off) is a policy that bundles vacation days, sick days, and personal days into a single bank of time. When you take a day off for any reason, it comes from the same pool. PTO is accrued — meaning you earn hours each pay period (e.g., 4 hours per biweekly period = 13 days/year). Some states require payout of unused PTO upon termination (California, Illinois, Massachusetts), while others don't. Your paystub may show a PTO balance or accrual rate.