Annual leave is paid time off that an employee is entitled to each year for rest and holiday. It is the most common leave type and the core entitlement that most leave policies are built around. Across most of the world outside North America, "annual leave" is the standard term for what is called vacation or PTO in the US.

Statutory minimums vary by country. The EU Working Time Directive guarantees at least four weeks (20 days) of paid annual leave a year; the UK provides 28 days including public holidays; many employers offer more than the legal minimum as a benefit. Part-time staff receive a pro-rata entitlement in almost every jurisdiction.

Accurate accrual and balances matter, especially across borders. Calamari's Time Off module calculates entitlement automatically, applies carry-over rules, and shows employees exactly how many days they have left.