Paid time off (PTO) is more than just a perk — it’s a powerful component in the work environment. For employees, it’s a measure of work-life balance. For employers, it’s a magnet for top talent. But, how much vacation time is actually standard?

Whether you're a small business owner crafting your first PTO policy, an HR pro benchmarking benefits, or a job seeker calculating which offer gets you more beach days, knowing how much time off the average worker receives is important. 

In this article, we’ll break down the average vacation days per year in the U.S. and explore why the numbers vary so widely. From industry trends to years of service, we'll explore what’s typical, what’s generous, and what could use a serious upgrade.

Spoiler: Most American workers don’t have it as good as you might think.

Ready to see how your policy (or your PTO dreams) stack up? Let’s dive in.

Comparing and Contrasting Vacation Time and PTO

Vacation time and PTO aren’t one and the same, though many people use the terms interchangeably. Think of it like this: All vacation time is PTO, but not all PTO is vacation time.

Vacation time is exactly what it sounds like — time off to relax, recharge, and step away from work without losing pay. Defined as a period of time when someone doesn’t attend work and is free to do what he or she wants, it’s usually planned and doesn’t cover emergencies, illness, or jury duty. Instead, it’s the time you spend with your family at the beach, tackling your travel bucket list, or just catching up on sleep and Netflix.

PTO represents a broader, more flexible umbrella that covers how and when employees are paid while not working. This includes vacations, sick days, personal time, mental health breaks, parental leave, and more.

Traditional policies separate time off into categories — vacation, sick leave, and personal days. PTO banks (or consolidated leave plans) roll everything into one balance, giving employees more freedom to use their days as they see fit.

For example: One employee might use PTO for a family vacation, while another might use it for rest and recovery after the flu. Same bank of days, different uses.

This all-in-one approach is growing in popularity, especially in remote and hybrid workplaces, because it’s simpler for HR to manage and offers employees more control. But here’s the catch: Sometimes, this flexibility leads employees to save their days for illness instead of taking true breaks, which can ultimately lead to burnout.

Whether your employer calls it “vacation,” “PTO,” or gives you the “unlimited” version (yes, that’s a thing … we’ll cover this later on), the goal is the same: Time away from work allows employees to return refreshed, motivated, and ready to go.

And in today’s competitive job market, time off is an important benefit for prospective employees and a differentiator in retaining star workers. 

How Much Vacation Time Does the Average American Worker Receive? 

Sure, Americans are known for working hard, but when it comes to time off? Well, domestic workers are not exactly sipping rosé in the French Riviera for five weeks every summer. In fact, compared to many other countries, the U.S. is kind of the overachiever who forgot to schedule a break.

What’s the real average?

According to the U.S. Bureau of Labor Statistics (BLS), the average number of paid vacation days for private-sector employees depends heavily on how long you’ve been clocking in:

• After one year: approximately 10-11 days.
• After five years: approximately 15 days.
• After 10 years: approximately 17-18 days.
• After 20 years: approximately 20 days.

If you’re doing the math, that’s about two to four work weeks off per year — if you’ve lingered long enough to earn it.

Employees at smaller companies tend to see a similar pattern: Newer hires get around 10 days. Tenured veterans (20-plus years) can earn up to 20 days or more. But the breakdown can get pretty granular.

For example, among employees with 10-20 years of service:

• 41% get between 15-19 days,
• 22% get 20-24 days.
• and 13% enjoy 24-plus days off.

If you think 20 days is generous, take a look at what workers in various countries around the world receive: 

• France: five weeks minimum (oui, really!).
• Sweden: 25 paid days.
• New Zealand: Four full weeks.
• Vietnam: At least 12 days.
• Egypt: 21 days.

United States: Zero days required by federal law.

Yes, you read that right — federal U.S. law doesn’t mandate any paid vacation. Whether you get it at all is entirely up to your employer.

What Role Does Company Size Play in PTO and Vacation Time?

When it comes to PTO, (company) size does matter. Whether you're working for a startup in someone's garage or a corporation with 10,000 employees and its own cafeteria sushi bar, the amount of vacation you get can vary wildly.

Big Companies, Big Benefits

If you’re punching the clock at a large corporation (think 500-plus employees), you’re more likely to enjoy a more generous PTO plan. According to the U.S. Bureau of Labor Statistics, 92% of workers at large firms receive paid vacation leave. In contrast, only 71% of employees at small businesses (fewer than 50 employees) get the same benefit.

Big companies often have more resources, HR departments dedicated to benefits, and the budget to offer extras like mental health days, paid sick leave, and even unlimited PTO (a post-pandemic darling in tech and finance sectors).

Small Businesses, Personal Perks

But don’t count out the little guys just yet. Small businesses may not always have the deepest pockets, but they make up for it with flexibility and a human touch.

Many small business owners can tailor vacation policies to the individual, offering:

• PTO that fits around family needs or school schedules.
• More open conversations about when time off is needed.
• A culture where employees feel seen, not just as job titles, but as people.

That kind of personalization builds loyalty — and, let’s be honest, it's way easier to get your week off approved when your boss is also your Friday lunch buddy.

Varies By Industry

Company size isn’t the only factor here — the industry a company represents plays a huge role in whether or not employees get to relax in a hammock with a mojito.

• Leisure and hospitality? Only 43% of workers get paid vacation.
• Finance and manufacturing? You're sitting pretty at 95% coverage.

Jobs with tighter staffing and higher turnover — like retail or food service — are less likely to offer vacation leave, partly because it’s difficult to cover for someone when every role is crucially important tto the business’s viability. 

Bottom line?

Larger companies typically offer more standardized, robust PTO packages. Smaller businesses offer flexibility, personalization, and human connection, which is oftentimes just as valuable. And no matter where you work, the industry, workload intensity, and company culture all play a part in shaping your time-off reality.

Other factors that influence a worker’s vacation time include status and/or position. Generally speaking, higher-level roles often come with more PTO perks. Why? Because leadership roles typically involve greater responsibility, higher stress, and longer hours — so those in the corner office might get extra days to decompress. Think of it as a tradeoff: more pressure, more pool time.

And each company is different. Some offer unlimited vacation while others stick with a set number, no matter what. 

Employees can also negotiate vacation days, especially if their positions are in high demand. Vacation time can be just as valuable (if not more) than a salary bump. If an individual is bringing specialized skills to the table, don’t be afraid to ask for a few more days in the sun.

Finally, an employee’s hours and role (part- or full-time) may also influence an individual’s time off. 

How Much Vacation Time Do People Actually Use? 

Despite having access to PTO, nearly half of American workers don’t use all of it — and many don’t unplug when they do.

According to a recent Pew Research study, 46% of U.S. workers take less time off than they’re allowed. That’s nearly half of the workforce choosing spreadsheets over sunsets.

So, what gives? Fifty-two percent of workers say they simply don’t feel the need to take additional days (Are these people OK?). Approximately 49% worry that taking time off will create a mountain of work when they return. In other words, vacation anxiety is real. A total of 43% hesitate to take more time off because they don’t want to burden the team. (Heart of gold, but still… take the beach day.)

Work Never Stops – for Some! 

Even when employees do take time off, many don’t fully disconnect. In fact:

• 68% of workers admit to working while on vacation; and
• 52% say they still worry about work while away.

From replying to internal chat messages poolside to checking emails in the airport lounge, true “off” time is getting more difficult to define.

Which Industry Is Most Likely to Leave PTO Untouched?

Turns out, not all vacation behavior is created equally. Here’s who’s holding back:

• Salaried workers (52%) are more likely than hourly workers (39%) to skip days off.
• Managers (54%) are more hesitant than non-managers (42%) to use their full PTO.
• Highly educated workers (51% with a bachelor’s degree or higher) take less time off than those with less education (41%).
• Upper-income earners are the biggest offenders, with 51% not taking all their time.
• Public sector workers like those in education (68%) or government (57%) are also less likely to use all their days.

Even demographics play a role. Women, especially those aged 18-49, are more likely to avoid PTO out of concern for their coworkers. Black workers and newer employees are more likely to worry about job security if they take too much time off.

What Happens to Unused Time? 

Often... Nothing. Sadly, nearly 24% of U.S. workers aren’t compensated for unused PTO. That’s right — those vacation days you skipped? They might just vanish into the HR void.

The Bottom Line: Take Your Days. You’ve Earned Them

Your PTO is part of your compensation; it’s not just a perk. Whether it’s a staycation or an escape to someplace sunny, using your time off helps prevent burnout, boosts productivity, and reminds you that work-life balance isn't just a buzzword.

So, go ahead — book the trip, silence the notifications, and step away from your inbox. Your vacation days (and your sanity) are worth it.

What Is Unlimited PTO, and Is it a Good Idea? 

Believe it or not, some companies are brave enough to offer a policy that says, “Take the time you need … as long as your work’s done.” 

Sounds like a dream, right? Well, unlimited PTO doesn’t mean everyone’s off jet-setting year-round while deadlines go up in flames. It means there’s no fixed bank of vacation hours. No accrual. No carryover. Just you, your workload, and your manager’s thumbs-up (or thumbs-down).

With unlimited PTO, there are no earned hours ticking up each pay period. You’re not stockpiling time like it's toilet paper in 2020. However, time off often still requires approval. Employees can’t just ghost their jobs for three weeks and call it “self-care.” Unlimited PTO often still runs on a request-and-approval system.

Essentially, if your work’s on point, your time off is your business. It’s less about how long you’re at your desk, and more about what you’re producing. In many cases, the culture behind the policy matters more than the policy itself.

Why Employers Love It

No more payout panic: Since there’s no vacation “bank,” there’s nothing to cash out when someone quits. That’s money saved.

No December chaos: Forget the holiday PTO stampede. Unlimited policies encourage employees to spread out their time off throughout the year.

Hiring bonus: This perk sounds great on job listings. And with tech giants like Netflix and LinkedIn on board, it signals modern, people-first values.

Simplicity (with the right tools): No more tracking balances. If your HR system’s solid, implementation is mostly policy-writing, not paperwork hell.

Why Employees Might Hate It

It’s Not Really Unlimited: Without a balance to “protect,” some employees fear their PTO requests will get denied arbitrarily. Earned hours feel more guaranteed than vague promises.

Guilt Trips Trump Real Trips: If your manager never takes time off and your coworkers grind through holidays, guess who’s going to skip that long weekend? Peer pressure can be a PTO killer.

Often Feels Like a Trap: You could take more vacation … but you won’t. Studies show employees with unlimited PTO often take fewer days than those with traditional plans. Why? Ambiguity and guilt.

Veterans May Feel Robbed: Longtime employees who’ve racked up hours might feel cheated when their PTO “nest egg” disappears. Cue awkward HR conversations.

Is Unlimited PTO a Good Idea?

Like many workplace perks, unlimited PTO is a “great in theory, complicated in practice” kind of deal. If your culture truly supports time off, and you give clear guidelines, this policy can build trust, reduce burnout, and attract top talent. But without strong leadership and communication, it can morph into a mirage: the vacation perk that no one actually uses. Unlimited PTO isn’t about giving people more vacation. It’s about giving them ownership of their time. Get the culture and communication right, and you might just unlock the true power of flexibility.

How to Create a Fair and Effective Vacation Policy (Hint: There's a Tool for That)

Creating a vacation policy might not sound like the most exciting part of running a business — but it’s one of the most important. A great policy doesn’t just prevent burnout and boost morale; it also protects your bottom line. The challenge? Striking the perfect balance between flexibility for your team and structure for your operations.

That’s where OnTheClock comes in.

1. Start with a Clear Framework

Whether you offer traditional PTO, unlimited vacation, or something in between, your policy needs to set expectations. Define:

• How much time off employees can take;
• How they should request it;
• Who approves it, and how far in advance; and
• How PTO accrues (if at all).

Avoid vague statements like "take time as needed." Ambiguity breeds confusion. And confusion breeds chaos and possibly a flood of PTO requests right before the end of the quarter.

2. Bring it to Life with OnTheClock

A policy is only as good as a company’s ability to manage it. That’s where OnTheClock shines. It’s not just time tracking; it’s a vacation policy’s best friend. Here's how it makes everything smoother:

• Built-in PTO tracking: Automatically accrue and track vacation, sick days, and personal time. No more spreadsheets, no more guesswork.
• Customizable Rules: Set accrual rates, waiting periods, carryover limits — you name it.
• Self-Service Requests: Employees can request time off directly through the app, and managers get a real-time dashboard to approve or deny.
• Calendar Visibility: Avoid team-wide burnout or double-booked holidays by visualizing everyone's time off in one place.

3. Make Fairness Part of the Policy

Fair doesn’t mean "everyone gets the same." It means your policy accounts for different roles, workloads, and tenure, without favoritism. Use data from OnTheClock to ensure:

• PTO is distributed equitably across teams.
• Managers aren’t unintentionally blocking time off.
• High performers aren’t silently burning out.

Bonus: You’ll also have an audit trail to back you up if questions or concerns arise.

4. Encourage People to Actually Use It

Unused time off doesn’t just hurt morale, it can hurt productivity and retention. Set the tone by:

• Talking about vacation like it’s a benefit, not a burden.
• Leading by example (yep, managers, this means you!).
• Using OnTheClock’s insights to check who’s overdue for a break.
• If no one’s used PTO in six months, it’s not a badge of honor. It’s a warning sign.

5. Revisit and Refine

Workplaces evolve, and so should your vacation policy. Use OnTheClock’s reporting tools to review usage trends and identify pain points. Are people hoarding days? Requesting but not taking? Struggling with the approval process? OnThe Clock has you covered! 

And, best of all, OnTheClock is free to try! The first 30 days are on us. Log in today and discover if it’s a fit for your business. What do you have to lose?