5. How much PTO should you offer your staff?

Posted by Damien on Oct 20, 2016

This is a post in the continuing series about 10 things to know when creating a PTO policy.

Perhaps if you’re not a fan of these new-fangled unlimited time off policies and you’re unsure about how much PTO to offer your staff, you might like to take a look at some nation-wide averages.

To arrive at your final answer though, you’ll also need to consider additional factors such as how competitive your industry is for finding and retaining top talent.

Many companies decide to allocate the amount of vacation PTO based on length of tenure. This is a great way to encourage employee retention.

In March 2026, private industry workers in the US received the following average number of paid vacation days per year as length of service increased, according to the Bureau of Labor Statistics:

Tenure (years) Vacation (days)
1 11
5 16
10 18
20 20

The same survey found that private industry workers also averaged 7 paid sick days a year. Private employers don’t have to give staff the 11 federal holidays, but in 2025, 81 percent of private industry workers had access to paid holidays, and the average was 8 days.

Given these averages, you should consider adding more, or less time off depending on how attractive your PTO allowance should be, as compared to your company’s ability to attract and retain talented staff due to other factors.

Our guide to creating a PTO policy covers this, along with the rest of your policy, in one place.

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