Why it's OK that fewer companies are offering unlimited PTO

For many employees and employers, unlimited PTO seems like a benefit that's too good to be true — and they may just be right.  

Three years ago, almost 9% of job postings on Indeed offered unlimited PTO, according to recent data from the job search platform. As of June 2025, only 2.9% of job postings are boasting unlimited PTO. While always a lesser-implemented perk, benefit leaders should continue to rethink their own stance on unlimited PTO and other leave policies, and what may be the right fit for them now or in the future.    

"Unlimited PTO symbolized an evolution of the modern work culture," says Jeremy Yonan, VP of total people rewards at Indeed. "At the time it felt like it was a strong signal of trust, flexibility and employee autonomy. But fast forward to where we are today, that initial shine has dulled." 

Read more: For benefit managers, the time to reinvent PTO is now

Unlimited PTO has existed as a benefit for a long time, but it gained significant traction during the post-pandemic hiring surge. As a result of working from home and sheltering in place, employees had grown accustomed to taking less time off. Organizations needed a way to differentiate themselves from other organizations when competing for that talent, and offering an endless supply of leave seemed like the best short-term solution. 

In addition, unlimited PTO also helped employers keep the cost of unused PTO payouts low, which added to the benefit's value proposition. But without the right oversight, this offering  eventually became unsustainable. 

"Unlimited PTO became a perk that looked good on paper, but it didn't necessarily translate into employee satisfaction or operational efficiency," Yonan says. "There's often a lack of structure, unclear expectations and benchmarks that lead employees to actually take less time under these policies. As a result, employees second guess what's too much time and fear appearing less committed." 

Read more: Olipop's new PTO benefit encourages employees to take a summer vacation

A lack of structure has also led to inconsistencies and inequities, according to Yonan, with adherence to the policy sometimes varying depending on the manager and department. This can lead to confusion and perceived unfairness, which ultimately keeps employees from using their unlimited PTO, furthering burnout and turnover rates. 

"In the absence of boundaries and leadership support, employees — especially high achievers — can run themselves into the ground," Yonan says. "Ironically, that defeats the very purpose of a flexible time off policy."

How leaders can maximize their leave policies

Despite the potential challenges, unlimited PTO remains a worthy investment for benefit leaders to consider. In order to keep unlimited PTO benefits effective, leaders should be revisiting their leave strategy as a whole and first ensuring that it's the right fit. 

Read more: Don't let PTO go to waste: An AI-powered approach to cashing out time

For example, for organizations who utilize PTO blackout dates to work around  strict deadlines and schedules, unlimited PTO may not be as functional as simply expanding the number of leave days or offering flexibility in other areas.  At other companies with more flexibility, their structured leave policy may be too restrictive and unlimited PTO could prevent those employees from running out of days. 

Most importantly, every organization, regardless of the strategy that works for them, should be reinforcing their leave policies with a healthy and supportive workplace culture. Leadership should be modeling leave behaviors like unplugging and encouraging teams to respect when their colleagues do the same. 

"Unlimited PTO isn't dead — it's just maturing," Yonan says. "Its future will really lie in how thoughtfully it's implemented, so that it doesn't just exist as a line item in our benefits brochure, but is rather supported by cultural norms."