Productive hours are paid hours for work connected to a department. Non-productive hours are a paid absence, i.e., there is a cost for the hours although they have not been used for regular work in the department. This could be sick leave paid for by the property, trainings, meetings, etc.

Vacation days/paid time off for full time employees should be ignored in PMI. Paid time off is accrued every working month during the year. When an employee takes their paid time off, there is no additional cost to the hotel for that month because it has already been set aside.