Paid Time Off — a combined leave category merging vacation, sick, and personal days into one balance.
PTO (Paid Time Off) is a leave policy that combines vacation, sick leave, and personal days into a single balance employees can use for any purpose. It originated in the US as a simpler alternative to separate leave types and has spread globally. PTO gives employees flexibility (no need to justify sick leave vs. vacation) and employers simpler administration.
In a PTO model, an employee might earn 20 PTO days per year, use them for vacation, illness, or personal matters without categorisation. Some companies add statutory requirements on top of PTO (unlimited bereavement, parental leave, jury duty).
In Pakistan, most companies still distinguish annual leave, casual leave, and sick leave because labour laws reference those categories individually, and tax treatment of encashment varies. However, a few Pakistani tech companies and multinationals have adopted PTO or unlimited PTO policies, citing simplicity and trust-based culture. Modern HR platforms support both separated-leave and PTO models with configurable policies.
Our PTO policy gives each employee 20 days per year to use however they choose.
Peoplifi handles Pakistan payroll, compliance, and HR workflows in one platform.
Start free 7-day trial