Holiday pay is premium compensation employees receive for working on recognized public holidays. It's typically calculated as a multiple of your regular hourly rate, such as time-and-a-half (1.5x) or double-time (2x). The purpose is to compensate workers for sacrificing time with family and friends during special occasions.

How is holiday pay calculated?

Holiday pay is calculated using the formula: Holiday Pay = Hourly Rate × Hours Worked × Holiday Multiplier. For example, if you earn $20/hour and work 8 hours on a holiday with a 1.5x multiplier, your holiday pay would be $20 × 8 × 1.5 = $240.

Is holiday pay required by law?

In the United States, there is no federal law requiring private employers to pay premium rates for holiday work. Holiday pay is typically a voluntary benefit. However, many other countries have mandatory holiday pay requirements with specific premium rates set by law.

What is time-and-a-half?

Time-and-a-half means earning 1.5 times your regular hourly rate. If your normal rate is $20/hour, time-and-a-half would be $30/hour. This is the most common holiday premium rate in the United States.

Do I get holiday pay if I don't work on the holiday?

If your employer offers paid holidays, you receive your regular pay for the day without working. If you work on the holiday, you may receive both your holiday pay plus premium pay, depending on your employer's policy.

Can my employer require me to work on holidays?

In most cases, yes. Unless you have a contract or union agreement that specifies otherwise, employers can require employees to work on holidays. However, many employers offer premium pay or other incentives for holiday work.

How Holiday Pay Works - Complete Guide to Holiday Premium Pay

What is Holiday Pay?

Holiday pay, also known as premium pay or holiday premium, is additional compensation that employees receive for working on recognized public holidays. Unlike regular pay, holiday pay is calculated at a higher rate to compensate workers for giving up time with family and friends during special occasions.

The concept behind holiday pay is straightforward: working when most people are off celebrating deserves extra compensation. While this seems fair, the reality of holiday pay varies dramatically depending on where you work and your employer's policies.

How Holiday Pay is Calculated

The basic formula for calculating holiday pay is:

Holiday Pay = Hourly Wage × Hours Worked × Holiday Multiplier

Let's break this down with an example:

Hourly wage: $25.00
Hours worked on holiday: 8 hours
Holiday multiplier: 1.5x (time-and-a-half)

Holiday rate: $25.00 × 1.5 = $37.50/hour
Holiday pay: $37.50 × 8 hours = $300.00
Regular pay would be: $25.00 × 8 = $200.00
Extra earned: $100.00

Common Holiday Pay Multipliers

Different employers and countries use various multipliers for holiday pay:

1.0x (Regular rate): No premium; used when holidays are simply paid days off with no extra compensation for working
1.5x (Time and a half): The most common rate in the United States. You earn 50% more than your regular rate
2.0x (Double time): Common for major holidays like Christmas and Thanksgiving. Also standard in countries like Australia
2.5x (Double time and a half): Used in some Australian awards and for certain industries
3.0x (Triple time): Required by law in Mexico for mandatory rest days

Holiday Pay vs. Paid Holidays

It's important to distinguish between two related but different concepts:

Paid holiday: A day off with pay. If your employer offers paid holidays and you don't work, you still receive your regular day's pay.
Holiday premium pay: Extra compensation for actually working on a holiday. This is the "premium" or "multiplier" on top of regular pay.

Some employers offer both: if you work on a paid holiday, you might receive your regular holiday pay plus premium pay for working—sometimes called "double pay plus holiday pay."

Holiday Pay Laws by Region

United States

The United States has no federal law requiring holiday pay. The Fair Labor Standards Act (FLSA) does not mandate:

Premium pay for working on holidays
Paid time off for holidays
Any specific holiday pay rate

Holiday pay in the US is entirely at the employer's discretion, though most employers offer it as a competitive benefit. Some states have limited requirements for certain industries, particularly retail.

Canada

Canada has statutory (public) holidays with mandatory premium pay requirements. Employees who work on these days typically receive:

Their regular wages for the day
Plus time-and-a-half (1.5x) for hours worked

Specific rules vary by province, with some requiring additional benefits like compensatory days off.

Australia

Australia has some of the strongest holiday pay protections. Under modern awards, employees working on public holidays typically receive:

Double time (2x) or double time and a half (2.5x)
The right to refuse unreasonable requests to work on public holidays

European Union

Holiday pay requirements vary by country across Europe:

UK: Bank holidays included in annual leave entitlement; premium pay is voluntary
Germany: Strict restrictions on holiday work; premium rates often in collective agreements
France: May 1st requires double pay by law; other holidays vary

Types of Workers and Holiday Pay

Hourly Employees

Hourly employees are most directly affected by holiday pay policies. If you're hourly and work on a holiday, your premium is calculated on your hourly rate.

Salaried Employees

Salaried exempt employees typically receive their regular salary regardless of holidays. If required to work on a company holiday, additional compensation depends on company policy. Non-exempt salaried employees may still be entitled to overtime for holiday work.

Part-Time Employees

Part-time employees are usually eligible for holiday pay on the same terms as full-time employees. If you work on a holiday, you should receive the same multiplier applied to your hours worked.

Which Holidays Qualify?

Common US holidays that employers often recognize include:

New Year's Day (January 1)
Martin Luther King Jr. Day (Third Monday in January)
Presidents' Day (Third Monday in February)
Memorial Day (Last Monday in May)
Juneteenth (June 19)
Independence Day (July 4)
Labor Day (First Monday in September)
Thanksgiving Day (Fourth Thursday in November)
Christmas Day (December 25)

Many employers also offer premium pay for Black Friday, Christmas Eve, and New Year's Eve.

Tips for Maximizing Holiday Pay

Know your employer's policy: Check your employee handbook or ask HR about holiday pay rates and which holidays are covered
Review union contracts: If you're in a union, your collective bargaining agreement may specify holiday pay rates
Track your hours carefully: Ensure all holiday hours are properly recorded to receive full compensation
Understand overtime rules: Holiday hours may count toward weekly overtime in some situations
Negotiate: When accepting a job offer, holiday pay can be a negotiable benefit

Disclaimer: This guide provides general information about holiday pay practices. Actual holiday pay depends on your employer's policies, employment contracts, collective agreements, and local laws. This is not legal or financial advice. Consult with HR or a legal professional for specific guidance.

How Holiday Pay Works