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This question is about employer.
Floating holidays vs. PTO
The difference between floating holidays and PTO is that floating holidays are a type of time off from work benefit that enables employees to take off a certain number of days at times of their choosing, while PTO refers to a broader swath of time off scenarios all considered Paid Time Off (PTO).
Floating holidays work by offering employees an additional paid time off (PTO) day in addition to standard paid time off periods or vacations. Employees can then use a floating holiday as a substitute for a public holiday. Then they have the ability to use this substituted day on just about any day they wish, this could be for: an employee's birthday, religious observation, etc.
PTO is a term used to describe all forms of time off from work where an employer still pays its employees for those days off. This includes many different paid time off situations, like vacation days, sick leave, personal days, and floating holidays. Normally, PTO is a set number of days a company gives its employees each fiscal year.
Key Takeaways:
| Floating holidays | PTO |
|---|---|
| Floating holidays are a type of time off from work that enables employees to take off a certain number of days at times of their choosing. | PTO refers to a broader swath of time off scenarios and these are all considered Paid Time Off (PTO). |
| Some examples of ways employees can use floating holidays include for an employee's birthday, a day of religious observation, for a special event, or for a personal reason | PTO includes many different paid time off situations, like vacation days, sick leave, personal days, and floating holidays. |
| Most employers put limitations on floating holidays in terms of the amount and when they can be used by employees. | Normally, PTO is a set number of days a company gives its employees each fiscal year. |
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