The essential difference between the two is that PTO covers any paid time away from work where the employee is not working; in contrast, vacation time refers to paid time off that’s taken for the employee to take a break with or without their family. It’s generally requested (and approved) in advance. In this regard, vacation is really just a type of PTO, but paid time off may not necessarily refer to vacation.
(Sick time, personal time, mental health cays, holiday pay, and jury duty are examples of non-vacation paid time off.)
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