How much is holiday pay?

WORKING on holidays may seem like an inconvenience at first, but many companies offer higher pay rates or bonuses.

Here's everything we know about holiday pay.

How much is holiday pay?

While paid holidays are not required in the United States, some employers do provide extra compensation or paid time off to their employees on days that are considered holidays.

Under federal law, holidays do not require overtime pay, and working on a holiday is not considered overtime.

However, a majority of companies do treat the holidays as such.

As a way of encouraging employees to work over the holidays, some employers may offer double-time or time-and-a-half pay, meaning that their regular rate is increased depending on the chosen pay rate.

For double-time pay, the rate is multiplied by two. For time-and-a-half pay, the rate increases by 50 percent.

Under the Fair Labor Standards Act, companies are not obligated to pay employees for time not worked, such as vacation or sick days.

However, many companies do allow paid vacation and sick days, depending on their policy.

If you work for a company that offers paid vacation days, you can likely still expect a paycheck if you take time off during the holiday season.

What days are considered holidays?

Federal holidays are holidays that are recognized and celebrated by the US Government, and include:

New Year’s Day
Birthday of Martin Luther King, Jr.
Washington’s Birthday (also known as Presidents Day)
Memorial Day
Juneteenth National Independence Day
Independence Day
Labor Day
Columbus Day (or Indigenous Peoples’ Day)
Veterans Day
Thanksgiving Day
Christmas Day

In addition to federal holidays, additional paid holidays may occur depending on the company.

These additional holidays are not recognized formally by the government, but can include:

Good Friday
Easter
The Friday after Thanksgiving
Christmas Eve
The day after Christmas (also known as Boxing Day)
New Year’s Eve
Other commemorative holidays like César Chávez Day

How do you calculate holiday pay?

For double-time pay, one simply multiplies their hourly wage by two in order to see what they will be making.

When one is receiving time-and-a-half pay, they should multiply their hourly wage by 1.5, in order to calculate their new pay rate.

You would then multiply whatever your holiday pay rate is by the number of hours you will be working.

Many companies also offer a bonus around the holiday seasons, but it is not required.

What is a holiday bonus?

A holiday bonus is given by an employer to an employee during the holiday season. They are considered gifts, and are not a requirement by any company.

How much is holiday pay?