Glossary
What is PTO accrual?
Also known as: Paid time off accrual.
PTO accrual is the method by which paid time off builds up gradually over the year, with an employee earning a small amount of leave each pay period or month rather than receiving the whole annual allowance in one grant.
Under an accrual model, leave is earned as time is worked. Someone entitled to a given number of days a year accrues a fraction of that balance in each period, so the amount available to book rises steadily and reflects service so far.
Accrual is often contrasted with a lump-sum grant, where the full allowance appears at the start of the year. Accrual ties the balance to actual tenure, which matters for joiners, leavers and anyone whose entitlement is paid out on exit.
Related on Capstan
Capstan is the complete HR platform, free for teams up to twenty people.