Cashing Out Vacation Time

Companies have different vacation policies for employees. At my company I am lucky to have the option to sell 1 week of vacation time ( 5 business days), and receive the equivalent of one week’s pay. When I started work this summer, part of my vacation package included 8 days of vacation time, 3 personal business days, and 2 personal floating holidays. I decided to sell 1 week’s of vacation to put it towards our DC vacation. There are definitely a few benefits to cashing out vacation time = AKA Money! Plus, you don’t have to miss work.

But what do you lose?

  • Time Off- This time can be used to visit family, work on personal life, or go on vacations. I would probably use it as relax time on the couch. The ability to sleep in is sacred and I miss it!
  • Money- Yes, you lose money. Little did I know, 40% of my week would be put towards taxes. My company, also, doesn’t match retirement contributions, even though this extra money is part of my salary. In essence, I just paid the government to work more? Hmm…

I’m glad I sold my vacation to fund our DC trip. But this morning when I didn’t want to get out of bed, I thought of the extra week of vacation I could have had all to myself.

Next year, I have 15 vacation days, 3 personal business days, and 4 personal floating holidays. I, also, have 10 days of sick time. I’m not sure if I will sell vacation. Right now, I’m leaning towards not, but things always change.

What do you think about cashing out vacation time? What is your company’s vacation policy?

 

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  • I don’t think it’s a horrible idea, but I prefer to have my vacation. Right now I get 20 days and I feel like that’s not enough!

  • John S @ Frugal Rules

    My former employer offered a plan to sell back vacation. Though I hated my job so much that I wanted all the time off I could get. :) I think selling back has the potential to be good, I think it’s mainly based off of your personal preferences & situation.

    • I think this year, I was in a position I didn’t feel like I could take my vacation for fear of not being at work. Especially since I started in June. But I’ve realized everybody here takes their vacation time. My boss is completely cool with his team taking vacation.

  • We don’t get to cash out vacation time unless you’ve maxed out your accrual (I think the most you can have is like 6 weeks or something, but I don’t think I’ll EVER have that problem). However, you CAN cash out sick time, and this has come in handy the past two years, because I cash out like 40 hours of sick time and use it to pay for Christmas. I just found out though that you can use sick time for maternity leave and get paid. SOOO, I don’t plan on cashing out any more sick time so that I can sabe up a bunch for when we deicde to finally pop out the babes.

    • Wow, that’s cool that you can cash out your sick time.

      I currently have 80 hours of sick time that I won’t be able to cash out. I will lose at the end of the year. Sucks…I would take it, except I feel bad for taking it when I’m not actually sick.

  • My work is very different. We get I think 3 sick days (which can’t be used as personal days which sucks), then 10 vacation days. And if you don’t use them during the year they all expire, no rolling over. And no option to cash them. Oh well, every company is different. I don’t think I’d want to cash them anyways, I live for my free time!

  • At my previous job, you received 5 sick days which if you didn’t use by the end of the year, they disappeared. And vacation days were based on how long you had worked there and they couldn’t be cashed out. But I liked taking vacation days because sometimes you just needed a break :)

  • I don’t think I’d cash in – I only get about 3 weeks of vacation per year, and feel like I could use some more =)

  • Well obviously this doesn’t apply to me now, but when I was working full time and I knew I was getting laid off, I was suddenly “sick” a lot more that summer so I saved all my vacation time (3 weeks) and cashed out when I left. A nice little bonus. I think it’s a good idea, but as long as you don’t burn out because you just want the cash. Vacation time is also there for a reason!

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