Microsoft is changing its vacation policy to give its US salaried employees unlimited paid time off (PTO). The new policy, which goes into effect on January 16th, will allow salaried workers to take off as much time as they want. The radical move, announced by Microsoft’s chief people officer this week, follows a successful year of innovation, and strategic moves to retain its top talent – despite its record-breaking layoffs.
At a time where quiet quitting is high, and businesses are being more restrictive in their policies, Microsoft’s flexibility may be a warm welcome for prospective employees. But, it’s not the only company to introduce the policy.
On January 16th Microsoft will be giving its US employees unlimited PTO. The new policy, described as ‘Discretionary Time Off’ (DTO), will allow salaried employees at Microsoft to take as much vacation time as they need, without having to accrue paid leave.
In addition to DTO, Microsoft will offer workers 10 additional corporate holidays throughout the year, plus time off for bereavement, leaves of absence, sickness, mental heath and jury duty. Employees outside of the US, and on an hourly contract will not be entitled to DTO due to hourly laws, and the differences in Federal and State wage.
Eligible employees with unused vacation balances will receive a one-time payout for accrued days in April, and all new employees will no longer have to accrue their vacation days.