OOO norms: How workers in different countries approach unlimited PTO

TOGETHER WITH

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You’ve probably heard countless takes on unlimited time off: It helps employees. It hurts employees. It helps recruiting efforts. It hurts recruiting efforts.

So if you’re wondering what’s really happening, you’re in the right place. We teamed up with Deel to get answers.

Their latest report by labor economist Lauren Young pulls new data from over 18,000 employees across the US, Canada, Mexico, and Europe in 2025. And that data reveals answers to some elusive unlimited PTO questions: Where are they effective? Where don’t they move the needle? How can HR leaders factor that into their approach to time-off policies.

Europe ➡️ high efficacy

Let’s start with the not-so-surprising insight: Unlimited PTO works very well in Europe. Employees with this policy take four more days off per year compared to their counterparts with fixed time off. Four days may not sound like much, but it’s a meaningful difference—imagine what 27 days off feels like compared to 23 days off. That’s enough time to tack on another country (or two) to your vacation itinerary.

More unsurprising news: North America doesn’t see the same outcome (or benefit) to unlimited PTO as Europe. Workers in the US and Canada take roughly the same amount of time off—16–17 days annually—regardless of whether their PTO is unlimited or capped.

It doesn’t matter what type of company, the structure, or whether the analysis included sick or vacation leave only—this pattern held. It even held true for companies with employees on both continents.

So, what do these patterns point to? In cultures where taking vacation is normalized, unlimited PTO unlocks more time off. Where it’s not normalized (looking at you, North America), the policy doesn’t make a difference.

North America’s PTO problem

Policy aside, let’s talk about how much time North Americans are taking off. Spoiler: It’s not a lot.

Employees in the US and Canada take a median of 14 days off compared to 23.5 days for European workers. But here’s a stat that may surprise you: Canadian employees take less time off than Americans, despite federal mandates for paid vacation.

Plenty of other data backs this up. Among global major cities, Toronto sits near the bottom of this average with a median of 11.5 vacation days taken in 2025. Who’s at the top, you may wonder? Stockholm is at the top with 29 days, with Berlin closely behind at 27 days and London further down with 22.5 days (all of which beat North American cities).

The data shows that cross-border operations can support better PTO habits. At intercontinental companies, workers on both sides of the Atlantic took more time off than employees at regional organizations. European employees took 25 days off, compared to the 23.5 average in Europe, while North Americans took 15 days versus 14 overall.

Take the cues, HR

For global employers designing policies, this data is a treasure trove. Knowing how work cultures differ across markets can inform what your policies look like and how you ensure they’re competitive and resonant.

What’s better? Deel has even more data and tools to help you navigate niches and norms across borders. Take a look at their resources for insights on time-off policies, sick leave, and more.