PTO & Workdays: Get Daily Pay Right

Daily pay = annual ÷ paid workdays. Many full‑time roles use 260 days (52×5).

How to count paid days

Paid days include PTO and company holidays if they’re paid. If you have 15 PTO + 10 holidays, many employers still treat paid workdays as 260.

Scenario examples

240 paid days → higher daily figure; good for contract planning.
220 paid days → even higher daily; ensure your annual salary reflects fewer paid days.

Paid vs unpaid time visualized

Daily pay uses your paid days. If your employer counts PTO and holidays as paid, your denominator stays at 260 even if you take the time off.

Checklist for setting paid days

Company holidays (paid?)
Personal days and sick time (paid?)
Seasonal shutdowns (paid/unpaid?)

Common mistakes

Subtracting paid PTO from paid days (double‑counting).
Using 365 for daily salary (use paid workdays instead).

Policy types across companies

Accrued PTO: hours accrue each pay period; confirm carryover limits.
Unlimited PTO: still budget for typical usage; confirm approval norms.
Floating holidays: choose-your-day paid holidays—ask how many.

Audit your paid-day assumption

Take last year’s calendar and mark actual paid days. If your number differs from 260, update the calculator for a more accurate daily rate.

Template you can copy

Create three rows: PTO, holidays, shutdowns. Note whether each is paid/unpaid, then compute your effective paid days used for daily pay math.

Regional nuances

Some regions mandate minimum vacation days or public holidays. Even if you receive more paid days, daily pay still uses your paid‑workday count.

Manager-approved examples

Confirm whether company shutdowns (e.g., end‑of‑year) count as paid for your team. If paid, keep the 260 baseline; if unpaid, reduce accordingly.

Audit template (printable idea)

List PTO, holidays, personal days, shutdowns.
Mark paid/unpaid and approval rules.
Compute effective paid days to use in the calculator.

PTO accrual math

If PTO accrues each period, estimate how much you realistically take in the first year. Do not subtract paid PTO from paid days if the time off is paid.

Leave scenarios

Paid leave: keep paid-day denominator unchanged.
Unpaid leave: reduce paid-day denominator for daily pay comparisons.

Company shutdown planning

For winter shutdowns, confirm whether days are paid and whether they impact PTO balances. Adjust daily-pay assumptions accordingly.