Full-time State of Indiana vacation accrual starts at 7.5 hours per month, or 90 hours per year, for the first four years of service. After five years, bonus hours are layered on top of that base, and annual accrual climbs at three tenure milestones to a maximum of 187.5 hours per year at 20 years of service. The rates are set by the Indiana Administrative Code and administered by the State Personnel Department (SPD), so they apply consistently across most of state government.1Indiana General Assembly. Title 31 State Personnel Department Article 5 State Employees – Section: Rule 8. Leaves
Who Earns Vacation
Eligibility comes first, because a large share of people working for the state accrue nothing. Full-time employees earn the standard 7.5 hours per month. Employees working at least half-time but less than full-time earn a prorated 3.75 hours per month.1Indiana General Assembly. Title 31 State Personnel Department Article 5 State Employees – Section: Rule 8. Leaves
No vacation accrues for hourly, per diem, temporary, intermittent, or contractual employees, or for anyone working less than half-time. Contract workers hired through third-party staffing agencies fall outside the state’s leave system entirely. If you’re not sure which category your position falls into, your agency’s HR office or the SPD can confirm it.
There is no waiting period. With supervisor approval, you can use hours as soon as they accrue.2State of Indiana. State of Indiana Employee Handbook – Section: Vacation
Full-Time Accrual by Years of Service
Every eligible full-time employee begins at the same 90-hour base. Bonus hours are added on top of the base at each milestone and continue for as long as you remain in that tenure band.1Indiana General Assembly. Title 31 State Personnel Department Article 5 State Employees – Section: Rule 8. Leaves
- 1 to 4 years of service: 90 hours per year (base only, no bonus)
- 5 to 9 years: 112.5 hours per year (90 base + 22.5 bonus)
- 10 to 19 years: 150 hours per year (90 base + 60 bonus)
- 20 or more years: 187.5 hours per year (90 base + 97.5 bonus)
One point of confusion worth flagging: older versions of state guidance sometimes list 225 hours as the 20-year accrual rate. That number is actually the maximum payout at separation, not the annual earning rate. The correct annual accrual at 20-plus years is 187.5 hours.2State of Indiana. State of Indiana Employee Handbook – Section: Vacation
Part-Time Accrual
Employees who work at least half-time but less than full-time earn 3.75 hours per month at the base rate and are also eligible for bonus tiers. Their milestones are stretched: the first bonus arrives at 10 years, the second at 20 years, and the third at 40 years of service.1Indiana General Assembly. Title 31 State Personnel Department Article 5 State Employees – Section: Rule 8. Leaves
The 225-Hour Payout Cap
Accrual is one thing; keeping the value of accrued hours is another. When you separate from state service in good standing, Indiana will pay out a maximum of 225 hours of unused vacation. Any balance above 225 hours has no cash value at separation unless you qualify for the Retiree Leave Conversion Program.1Indiana General Assembly. Title 31 State Personnel Department Article 5 State Employees – Section: Rule 8. Leaves
Agencies may also set internal deadlines requiring employees to use excess leave before the end of a fiscal or calendar year. If your agency imposes such a deadline and you don’t schedule the time, hours above the carryover limit can be forfeited. Tracking your own balance is your responsibility.
The practical effect on long-tenured employees is significant. If you’re earning 187.5 hours a year and holding a balance already at or above 225, every additional hour you accrue but don’t use has no payout value. Using vacation steadily through the year protects the value of what you’ve earned.
Retiree Leave Conversion
Employees who retire from state service can convert accrued vacation above the 225-hour payout threshold into an additional benefit through the Retiree Leave Conversion Program, governed by 31 IAC 5-10. The maximum benefit is $5,000, and the program may also include unused sick and personal leave hours.3Indiana State Government. SPD Offboarding Benefits Information
Using Your Accrued Time
Earning hours and taking them off are two different steps. Your supervisor decides when leave can be taken and how much you can string together. The administrative code caps a single vacation block at four calendar weeks unless your appointing authority recommends a longer period and the SPD director approves it.1Indiana General Assembly. Title 31 State Personnel Department Article 5 State Employees – Section: Rule 8. Leaves
You have no entitlement to specific dates. Agencies balance leave against staffing needs, and popular weeks fill up. Requesting time well in advance is the difference between an easy approval and a denial.
Transferring Between Agencies
Moving between agencies within SPD jurisdiction does not cost you vacation, as long as there is no break in service. Coordinated notice between the two HR offices keeps your service record intact, which means your bonus tier and your accrued balance both carry over.2State of Indiana. State of Indiana Employee Handbook – Section: Vacation
Even a short gap in employment can reset your accrual tier and forfeit banked hours. If a transfer is on the horizon, confirm with both HR offices that dates align before you give notice.
Where the Rules Come From
Indiana’s public-employee vacation system is administrative rather than statutory. The Indiana Code does not mandate vacation leave for state employees. The framework lives in the Indiana Administrative Code at 31 IAC 5-8-2, in the SPD’s Leaves and Absences Policy, and in the State Employee Handbook. The SPD’s rulemaking authority comes from Indiana Code 4-15-2.2-19.4Indiana State Government. Leaves and Absences Policy1Indiana General Assembly. Title 31 State Personnel Department Article 5 State Employees – Section: Rule 8. Leaves
Because the rules are administrative, they can be changed by the SPD without legislative action. Checking the current version of the Leaves and Absences Policy or the Employee Handbook before making decisions based on a balance projection is worth the two minutes it takes.