Holiday Pay Calculator

What is Holiday Pay?

Holiday pay is the premium compensation employees receive for working on recognized public holidays. It compensates workers for sacrificing their time with family and friends during special occasions. While not legally required in many places, holiday pay is a common benefit offered by employers to attract and retain employees.

How Holiday Pay is Calculated

The basic formula for calculating holiday pay is:

For example, if you earn $20/hour and work 8 hours on a holiday with a 1.5x multiplier:

• Holiday Rate: $20 × 1.5 = $30/hour
• Holiday Pay: $30 × 8 hours = $240
• Regular Pay would be: $20 × 8 = $160
• Premium Earned: $240 - $160 = $80 extra

Common Holiday Pay Multipliers

• 1.0x (Regular rate): No premium, used when holidays are just paid time off
• 1.5x (Time and a half): Most common in the US for holiday work
• 2.0x (Double time): Common for major holidays like Christmas
• 2.5x or 3.0x (Triple time): Used in some countries like Mexico

Holiday Pay Laws in the US

Unlike many other countries, the United States has no federal law requiring employers to pay premium rates for holiday work. The Fair Labor Standards Act (FLSA) does not require:

• Extra pay for working on weekends or holidays
• Paid time off for holidays
• Minimum holiday premium rates

However, many employers voluntarily offer holiday pay as a competitive benefit. Some states have limited requirements for certain industries, particularly retail.

International Holiday Pay Rules

Many countries have mandatory holiday pay laws with generous premium rates:

• Australia: 2x-2.5x for public holiday work
• Canada: 1.5x with statutory holiday pay requirements
• UK: Bank holidays included in annual leave entitlement
• Germany: Premium rates with strict holiday work restrictions
• Mexico: Triple time (3x) for mandatory rest days