Global HR Glossary

What is Holiday Pay? 

Holiday pay is a form of compensation provided to employees for designated public holidays, which may include enhanced pay rates for working on holidays or paid time off for holidays when no work is performed. This benefit is not mandated by federal law but is commonly offered by employers to improve morale and attract talent. 

Calculating and Managing Holiday Pay 

Employers may offer holiday pay as full or partial day paid leave, or as bonus payments at enhanced rates such as "time-and-a-half" or "double-time" for working during holidays. Some organizations also provide "floating holidays" that employees can use for days significant to them, promoting inclusivity and flexibility in recognizing diverse cultural observances.