PTO (Paid Time Off) is a single bank of paid days that employees can use for any purpose, whether that's a holiday, a personal appointment, or a sick day. Instead of separating annual leave and sick leave into distinct allowances, a PTO model pools them, giving employees flexibility and simplifying tracking for HR.

The term comes from the United States but is now widely recognised globally, especially in tech companies and international teams working in English. Elsewhere it overlaps with "annual leave", though the two are not identical: annual leave usually refers specifically to holiday entitlement, while PTO is a broader pool.

Whichever model a company uses, accurate balances matter. Calamari's Time Off module supports both pooled PTO and separate leave types, applying accrual rules and carry-over policies automatically so employees always see how many days they have left.