Although US companies aren’t obligated to offer their employees paid time off, many of them do. Time off, however, results in a better work-life balance, improved health, and indirectly, better profits for the company. PTO is particularly important for small business owners to remain competitive as an employer in the sea of other small companies and the tough job market. These PTO statistics emphasize the importance of paid time off for both employees and companies. Moreover, they show PTO’s importance to workers compared to other benefits. But let’s dive in to learn more.
PTO Statistics (Editor’s Choice)
- In the US, private sector employees have ten paid days off on average.
- Over 55% of Americans don’t use all of their PTO.
- 63% of employees would reject a job offer if PTO were not included.
- 74% of employees would rather earn more money than take time off.
- 37% of people are saving paid time off to carry it over.
- 76% of people working in private industry receive paid vacation time.
General Paid Time Off Statistics
1. In the US private sector, employees have ten paid days off on average.
Although it usually depends on the years of service, employees mostly have ten days a year, not counting sick days and paid holidays. Those with more than 20 years of experience have the highest number of paid days (26). Next are those with 10 to 19 years of service, with 24 days. People employed for 5 to nine years receive 20, while those employed for four years receive 17 days. Employees with three years of service have 16, followed by those with one to two years, with 15 days. Finally, the average vacation days in the USA for workers under one year of employment is close to 13 days.
2. Over 55% of Americans don’t use all of their PTO.
According to paid time off statistics, many Americans never use all their days, as few as they might be. Out of those that do, most spend only a small number traveling around the country. For instance, Americans took around 1.8 billion domestic leisure trips and spent approximately $650 billion in 2018. That, in turn, supported 5.5 million jobs and the US economy in general.
3. Workers in the US don’t use around 768 million paid days off per year.
According to recent PTO statistics, the average paid time off in the US translates into $65.6 billion in lost benefits since 236 million days have been forfeited.
4. 63% of employees would reject a job offer if PTO were not included.
Paid time off is worth more to workers than employers imagine. In fact, the latest research has demonstrated that 76% of employees claim it’s extremely important that employers offer paid vacation time, followed by paid holidays (74%). The majority of companies indeed offer paid time away because organizations that don’t are struggling to retain talent.
5. 54% of employers with PTO programs believe that unscheduled absences fell by 10% after offering PTO to employees.
Employer paid time off statistics suggest that many organizations are choosing to implement PTO policies to track absences better. In fact, companies that have implemented some sort of HR tracking software confirm that unscheduled absences dwindle when the company adopts PTO practices. For example, in 4% of surveyed companies, the absences dropped by over 20%.
6. One in four US employees doesn’t have a paid vacation.
The average vacation days in the US do not correspond to the situation in other rich countries. In fact, the US is the only advanced economy that doesn’t guarantee paid vacation time. These paid time off statistics show that 28 million Americans don’t have paid vacations or holidays.
7. 74% of employees would rather earn more money than take time off.
Although employees’ average vacation days per year in the US are few, the majority would rather earn more money than take extra days off. Over half of them claim their time off is appropriate. Also, 77% of educators confirm they would rather have a raise than more PTO. On the other hand, 50% of healthcare workers don’t take paid time off because of their workload.
8. 16% of workers with PTO have an unlimited vacation policy.
Only 16% of employees have unlimited PTO, statistics reveal. The findings suggest that this type of policy rose by 178% between 2015 and 2019. For reference, unlimited leave means employees can take days for whatever reason without deducting this time from the allowed annual time.
9. Those that earn over $150,000 per annum take on average of 22.5 days.
The average PTO in the USA that employees use depends on several factors. Among other things, the income an employee earns plays an important role. So those with higher income tend to spend more days off on average. For instance, those earning over $150,000 leave a few days on the table (3.1 days), PTO statistics reveal. However, as earned days increase faster than paid time off, US workers use a smaller share of their total days earned.
10. Over 61% of those between 18 and 25 left some unused PTO days.
How much average time off employees take per year also depends on their age. For instance, many young people have at least one unused PTO day each year. However, 39% of those over 45 are in the same category. Furthermore, 42% of employees over 55 said they didn’t take their PTO due to workload, while only 18% of 18-24 year-olds confirmed the same.
11. One in three workers feels pressured to skip time off.
In line with paid time off statistics, around 32% of employees feel pressured by their organization not to take PTO. Besides this, many employees have other reasons for not taking time off. First, 18% said it’s because of the workload. Next, managers didn’t approve 7% of workers’ days off. Third, 8% of employees were trying to get a promotion, while 3% were pressured not to take it. After that, 9% didn’t feel comfortable enough to ask for days off, followed by 8% that forgot to ask. Finally, in the case of 6% of workers, the company has a culture of not taking days off. However, a large number of workers (40%) said they were saving PTO to carry it over to the next year.
12. 54% of employees with paid time off used the sick time to have a mental health day, PTO stats show.
Over half of employees take sick days to have mental health days without reporting this to their bosses. Moreover, one in five employees with paid time off misled the manager about why they needed the time off. About one-quarter did so to sleep, while 50% simply needed a mental health day.
13. One-third of baby boomers and Gen X take around 10-19 days annually.
PTO stats show that compared to millennials, Gen Z and baby boomers tend to have more average vacation time per year. However, unlike baby boomers with 35% and Gen X (31%), only one in five millennials take this many vacation days (21%). Typically, Americans with older kids also take more time off than those with younger children.
14. Almost 30% of Americans with open PTO policies work on vacation.
People with traditional vacation policies don’t work as much while away as those with open PTO, statistics reveal. For example, 29% of those with unlimited paid time off always work on vacation. Further, 15% of those with vacation accrual plans claim they always work on trips, while 37% constantly check their work email. Those with unlimited PTO policies are more likely to open and reply to work emails on vacation. Namely, 42% of these workers always log in during time off.
15. Workers in the northeast of the US have the most PTO annually, or 11.4 days on average.
After northeast, southwest employees also have the largest PTO on average in the US — 10.3 days. On average, employees in the west have 9.4 days, followed by the midwest and southeast with 8.5 each, PTO statistics demonstrate.
16. Only 14% of Australian workers don’t receive PTO.
Although the US average vacation days match Canada’s (10 days of PTO annually), 74% of Americans would instead take a raise over more paid time off. Australia is slightly better than Canada and the US, with 16-20 days of PTO annually. On the other hand, 14% of the Australian workforce and 8% of their Canadian counterparts don’t receive PTO.
17. 90% of employees claim that they’ve come to the office with symptoms of cold or flu.
PTO statistics suggest that 33% of workers always go to work even when feeling unwell. Most catch cold in an open space office (84%), followed by those who get it from a cubicle (78%) or their own office (75%). Finally, 61% get sick from being at a shared table. One of the reasons might be that the employers are creating a culture of going to work sick.
18. 19% of workers go to work while sick more than once a month.
It is a fact that most employees go to work sick. Around 13% of people go to work sick at least one week per year. Further, 12% go to work sick around six times annually.
19. The absence and leave management software market is estimated to hit $953.86 million worldwide by 2026.
According to paid time off statistics, companies require system solutions that will help them track the PTO and sick leave days. Leave management software allows companies to manage employees’ vacation, absence, or sick leave. Tracking includes information about the number of days or the times when employees are unavailable. In 2020, the market size was around $513.99 million. Between 2021 and 2026, the market is set to grow at a 9.3% CAGR.
20. 70% of American workers consider paid maternity leave important.
Statistics indicate that a large number of Americans believe maternity leave is much more important than paid paternity leave. So 56% of people confirmed paternity leave is important, as opposed to 70% that claim the same for paid maternity leave. Further, 52% of male workers claim that paid paternity leave is very important. The same applies to 61% of men aged between 18 to 34, PTO stats reveal.
21. 37% of people save paid time off to carry it over.
The average PTO accrual rate among some employees is pretty high. It’s one of the main reasons why people don’t use their PTO but carry it over. Other reasons include too much workload (16%) or not being sick often (11%).
22. 71% of employees have taken a ‘staycation’ in the past year.
For one in four employees, staycation was their most significant trip during their PTO. That’s around 24% of US workers who stayed home during their paid time off. Most stay at home due to a lack of desire for intensive planning or taking expensive trips, PTO statistics show.
23. One-quarter of employees report fair PTO distribution for holidays.
PTO accrual rate during the year tends to be highest before the holidays. However, many employees prefer to take accrued PTO for other occasions such as staycations or mental health days as well, PTO stats show. Yet, PTO calls for equitable distribution before important holidays. Namely, most conflict over PTO happens on Christmas Eve (42%), Christmas Day (37%), and Spring Break (34%).
Average Vacation Days by Industry
24. 76% of people working in private industry receive paid vacation time.
The average vacation time in America is significantly shorter than in other nations. Compared to other countries, workers in the US take fewer days off. Private industry workers, for example, comprise 84.7% of the workforce, and 24% don’t receive paid vacation days. However, according to PTO statistics, the majority receive ten days off paid vacation approximately after one year of employment.
25. On average, professional and technical service employees with over one year of experience have ten paid vacation days.
Average paid vacation time in the USA varies in different fields. So those in technical, professional, and related fields have an average of 10 days as in the private industry. But this number rises with years of employment. So after 25 years, these workers have around 17.8 days.
26. Clerks and sales employees with over 25 years of experience have around 16.4 paid vacation days.
Following paid time off statistics by job, clerks and workers in sales have fewer days on average compared to other professions. For instance, those with over one year in service in professional and technical jobs have an average of 10.0 paid vacation days per year.
27. 32% of employees in the hotel and F&B industry don’t have any paid time off.
In some industries, employees don’t have the right to any PTO per year. Typically, it’s in the hotel and food industry where most employees claim they don’t have days off. For instance, 60% don’t get enough paid time off, and only 15% stated they don’t come to work when sick.
28. Blue-collar and service workers with over one year of experience receive approximately 6.8 paid vacation days annually.
Blue-collar workers typically earn 14.1 days only after fulfilling 25 years in service. However, besides paid vacation days, they have the right to 10.1 paid sick days. For those working only one year in this field, the number of paid sick days is only 8.8, as paid time off statistics by occupation show. So jointly, the average PTO and sick days reach about 16 for those with one year and about 24 for those with over 25 years in service.
29. Non-profit sector employees have the most PTO days off per year, or 17.5 on average.
Employees in non-profit and foundation segments have the most paid time off. After them, those working for the government or military are in second place, averaging 17.3 paid days. The third spot is reserved for utilities, with 15.8 days of average paid annual leave.
30. 15% of healthcare workers go to work despite being sick.
Healthcare workers are usually under heavy stress and workload at work. For reference, a study revealed that 50% couldn’t take time off because their workload was too heavy or they weren’t comfortable asking. Further, 46% confirm they don’t receive enough PTO.
PTO Statistics for Small Business Owners
31. The average employee in a small business in the US can expect to earn additional 3-4 days every five years of service.
The average PTO days in America correspond to the time spent in service. The situation is the same for large companies and small businesses alike. So, those working in small businesses could expect an increase in PTO every five years. If workers have spent ten years working for the same employer, they accumulate three weeks of paid vacation.
32. Small business employees with over 20 years of experience receive nine paid sick days on average.
PTO statistics indicate that in the same way employees receive paid vacation days, they are usually entitled to paid sick leave. Most small business owners prefer to allow their workers to stay home when sick to prevent spreading the illness at the workplace. On average, employees with one to five years of experience in a small business have seven days of sick leave. Next, those between five and ten years in service receive eight days on average; finally, those over 20 years get nine days.
The Bottom Line
Hopefully, these PTO statistics have helped you understand how business policies about paid time off affect workers and companies. As you can see, a transparent PTO policy helps workers achieve better work-life balance, resulting in productive employees that are more engaged and efficient, ultimately lifting profits. In addition, PTO policies are crucial for companies that want to attract skilled talent and retain it.
Paid Time Off FAQ
How do I calculate PTO accrual?
To calculate the PTO accrual rate, you’ll need to know your company’s PTO policy and how many hours you work per week. Generally speaking, average PTO accrual rates are 1-2 hours per week. So, if you work 40 hours per week and your company accrues a one-hour PTO, you would accrue 40 hours of PTO per year. You can also use HR software to keep track of PTO for different employees.
How much PTO do most companies give?
According to a report from the Bureau of Labor Statistics, the average paid vacation time in the USA days offered by employers in the United States is 10 days. However, PTO stats show that the amount varies significantly from one company to another. Some companies offer unlimited PTO, while others have very strict policies that limit the amount of vacation time employees can take.
What are the types of leave?
There are many different types of leave that employers can offer to their employees. The most common types of leave include vacation, sick, and personal days. Other types of leave include maternity/paternity leave, bereavement leave, and jury duty.
What is the best way to manage employee vacation time?
There is no one-size-fits-all answer to this question. The best way to manage employee vacation time will vary from company to company. However, according to paid time off statistics, there are a few best practices that all companies should follow:
- Have a clear and concise PTO procedure in place.
- Communicate the PTO policy to all employees.
- Prioritize requests.
- Plan for slow and busy seasons.
- Keep track of past requests.
One way to ensure all these practices is with the help of leave management software.
How many times can I use PTO?
There is no set answer to this question, as it will vary from company to company. Some companies have unlimited PTO policies, while others have strict limits on the vacation time their employees can take, PTO statistics reveal.
Sources: Zippia, U.S. Travel Association, CNN, Deluxe, CEPR, Intuit Quickbooks, Achievers, PR Daily, Insider, HR Executive, Facts and Factors, CNBC, Bureau of Labor Statistics, Zenefits, SurePayroll, AttendanceBot, Patriot Software
