Holiday premium formula
Holiday Pay = Hourly Rate × Holiday Hours Worked × Premium Multiplier
Common premium structures
| Structure | Multiplier | Notes | Example ($22/hr, 8 hrs) |
|---|---|---|---|
| Straight time (scheduled day off) | 1× | No premium for working — employee receives holiday off at regular pay | $176.00 |
| Time and a half | 1.5× | Most common premium for hourly workers who work the holiday | $264.00 |
| Double time | 2× | Common in union contracts and some retail or healthcare policies | $352.00 |
| Flat bonus | Varies | Fixed dollar amount (e.g., $100) in addition to or instead of hourly premium | Policy-specific |
Federal holidays commonly observed
Private employers are not required to observe these days, but many align paid holidays with the federal calendar.
Who typically receives holiday pay?
Salaried exempt
Often receive the day off at regular salary with no extra premium. Working the holiday may be uncompensated unless policy says otherwise.
Hourly non-exempt
May earn a premium rate when scheduled to work on a recognized company holiday. Eligibility often requires working the day before and after.
Part-time & new hires
Prorated or delayed eligibility is common. Probationary periods may exclude holiday benefits.
Holiday pay vs. overtime
Holiday premiums and overtime are separate calculations. Some employers pay OT on top of holiday rates; others pay the greater of the two. Your handbook defines stacking rules.
Example: $22/hr × 8 holiday hours × 1.5 = $264. If you also work 2 OT hours at 1.5× on that day, add $22 × 1.5 × 2 = $66 for a total of $330 (when policies stack).