---
title: "Accrual Policy Types"
slug: "pto-accruals-policy-types"
description: "R365 supports three PTO accrual policy types: Unlimited (no cap), Fixed Date (hours granted on a set date), and Accrued (based on hours worked)."
updated: 2026-01-30T15:47:25Z
published: 2026-01-30T15:47:25Z
canonical: "docs.restaurant365.com/pto-accruals-policy-types"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Accrual Policy Types

This article discusses the **policy types** within [PTO Accruals](/doc/docs/pto-accruals-overview).

---

## Unlimited

The **unlimited** policy type allows employees to request an unlimited amount of time off with the associated earning type. With this type, there are no configurations to the policy and employees do not accrue hours, as their balance is always infinite.

The unlimited policy type can be used with all earning types, and is frequently used with the ‘Unpaid’ type. An unlimited accrual rule with the earning type ‘Unpaid’ allows employees to request an unlimited amount of unpaid time off.

Learn how to [create an accrual rule for an 'unlimited' type policy here](/doc/docs/pto-accruals-creating-an-unlimited-policy-accrual-rule).

---

## Accrued

With the **accrued** policy type, employees accrue earnings based on **hours worked**. Employees will accrue hours with the following formula:

- Hours Worked x Accrual Rate

For employees with **hourly jobs**, the hours worked totals are determined by **labor hours in the DSS**.

For employees with **salary jobs**, hours are accrued based on the employee's **expected hours per day**, which are calculated as the employee's '[Expected Weekly Hours](/doc/docs/workforce-employee-record-time-tab)' divided by 7.

Accrued hours for an accrual rule of this type will always expire or carry over on a specified date each year.

### Primary Policy Settings

| **Setting** | **Notes** |
| --- | --- |
| Start Accruing | Employees will begin accruing hours a set number of days **after** their **hire date**. |
| Hours Increment | Employees will be able to request time off in 2, 4, or 8 hour increments or freely without restriction. |
| Start Using | Employees will be able to use their accrued time off a set number of days **after** their **hire date**. |
| X hours accrued per X hours worked | The **accrual rate** that employees accrue hours. The accrual rate is calculated as: Number of hours accrued / Number of hours worked ***Example:*** Configured Rule: **2** hours accrued per **40** hours worked Accrual Rate: 2/40 = **0.05** Employees will accrue 0.05 hours per hour worked |
| Accrue on Non-Worked Hours | Determines if 'non-worked' hours, such as hours associated with 'sick' earnings, are included when calculating an employee's total worked hours. |
| Calendar Year End Date | Date that accrued hours will expire each year. |

### Additional Policy Settings

| **Setting** | **Notes** |
| --- | --- |
| Negative Balances | Determines if employees can request more time off hours than they have accrued. When enabled, employees will be able to submit time off requests that will result in a negative accrual balance. |
| Accrual Cap | Determines how the maximum number of hours an employee can accrue is calculated: - **Limitless Accrual** - There is no cap to how many hours an employee can accrue. - **Maximum Yearly Accrual** - The employee can accrue up to a set number of hours per year. - **Max Running Balance** - The employee can accrue up to a maximum balance. As hours are used, more can be accrued. |
| Tenure Bonus | When enabled, the **accrual rate** and **maximum balance** for the employee can be increased based on their tenure with the company. Tenure is configured as the number of **worked years** since the employee's **hire date**. For each level of tenure bonus, the accrual rate must be increased. Increasing the maximum balance is optional. Multiple levels of tenure bonus can be configured. |
| Carryover | If enabled, employees' current accrual balances will be carried over on the set '**calendar year end date**'. Otherwise, their current balances will expire. The percentage of the employee's balance and maximum hours to carry over can be defined. Carried over hours can be set to expire after a set number of days. Carried over hours can be ‘regular’ accrual hours that are included in the employee’s accrual cap calculation or ‘exempt’ accrual hours that are in addition to the employee’s accrual cap. |
| Pay Out Expired Hours | If enabled, when an employee's accrued hours expire, earnings associated with the rule will be added to the DSS. |

Learn how to [create an accrual rule for an 'accrued' type policy here.](/doc/docs/pto-accruals-creating-an-accrued-policy-accrual-rule)

---

## Fixed Day

With a **fixed day** policy, employees will accrue a set number of hours on a **selected day** each year **or** on a **recurring schedule**. The selected day can be the employee’s birthday, anniversary, or a custom date. Recurring schedules can be weekly, bi-weekly, or monthly.

Accrued hours associated with a selected day will always expire or carry over on the selected accrual date in the following year.

### Primary Policy Settings

| **Setting** | **Notes** |
| --- | --- |
| Date of Accrual | If **birthday** is selected, the employee will accrue the set number of hours on the **birthday** set on their [employee record.](/doc/docs/workforce-employee-records-basic-info-tab) > If the employee does not have a birthday set on their employee record, accrual rules with this configuration will not be assignable to them. If **anniversary** is selected, the employee will accrue the set number of hours on the **hire date** set on their [employee record.](/doc/docs/workforce-employee-record-employment-tab) > If the employee does not have a hire date set on their employee record, accrual rules with this configuration will not be assignable to them. If a **custom date** is selected, all employees will accrue the set number of hours on the **custom date**. If **recurring period** is selected, all employees will accrue the set number of hours on a set schedule; **weekly**, **bi-weekly**, or **monthly**. |
| Hours Accrued | **Fixed number of hours** to be accrued on the selected date. |
| Start Accruing | Employees will begin accruing hours a set number of days **after** their **hire date**. > This setting is only used for recurring period configurations. |
| Hours Increment | Employees will be able to request time off in 2, 4, or 8 hour increments or freely without restriction. |
| Start Using | Employees will be able to use their accrued time off a set number of days **after** their **hire date**. |
| Calendar Year End Date | Date that accrued hours for a recurring period will expire each year. |

### Additional Policy Settings

| **Setting** | **Notes** |
| --- | --- |
| Negative Balance | Determines if employees can request more time off hours than they have accrued. When enabled, employees will be able to submit time off requests that will result in a negative accrual balance. |
| Maximum Balance | Determines how the maximum number of hours an employee can accrue is calculated: - **Limitless Accrual** - There is no cap to how many hours an employee can accrue. - **Maximum Yearly Accrual** - The employee can accrue up to a set number of hours per year. - **Max Running Balance** - The employee can accrue up to a maximum balance. As hours are used, more can be accrued. |
| Tenure Bonus | When enabled, the **fixed accrual hours** and/or **maximum balance** for the employee can be increased based on their tenure with the company. Tenure is configured as the number of **worked years** since the employee's **hire date**. For each level of tenure bonus, the fixed accrual hours must be increased. Increasing the maximum balance is optional. Multiple levels of tenure bonus can be configured. |
| Carryover | If enabled, employees' current accrual balances will be carried over on the set '**calendar year end date**'. Otherwise, their current balances will expire. The percentage of the employee's balance and maximum hours to carry over can be defined. Carried over hours can be set to expire after a set number of days. Carried over hours can be ‘regular’ accrual hours that are included in the employee’s accrual cap calculation or ‘exempt’ accrual hours that are in addition to the employee’s accrual cap. |
| Pay Out Expired Hours | If enabled, when an employee's accrued hours expire, earnings associated with the rule will be added to the DSS. |

Learn how to [create an accrual rule for a 'fixed date' type policy here](/doc/docs/pto-accruals-creating-a-fixed-date-policy-rule).

A database entry that contains detailed info about an employee, including personal details and employment history.