{"id":198051,"date":"2022-10-21T08:57:39","date_gmt":"2022-10-21T12:57:39","guid":{"rendered":"https:\/\/www.attendancebot.com\/blog\/?p=198051"},"modified":"2025-02-19T14:27:58","modified_gmt":"2025-02-19T19:27:58","slug":"holiday-premium-pay","status":"publish","type":"post","link":"https:\/\/www.attendancebot.com\/blog\/holiday-premium-pay\/","title":{"rendered":"How is Holiday Premium Pay Different from Overtime?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Asking employees to work holidays and give up precious time with their families is a big task. They need to be compensated fairly for this time. American businesses solve this issue by giving workers holiday pay that is over and above their regular pay.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.attendancebot.com\/?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=holiday-premium-pay&amp;utm_content=above-the-fold\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-197471 size-full\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/themes\/veen\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/03\/20220308_183813_0000.png\" alt=\"\" width=\"785\" height=\"128\" data-srcset=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/03\/20220308_183813_0000.png 785w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/03\/20220308_183813_0000-300x49.png 300w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/03\/20220308_183813_0000-768x125.png 768w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/03\/20220308_183813_0000-100x16.png 100w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/03\/20220308_183813_0000-700x114.png 700w\" data-sizes=\"auto, (max-width: 785px) 100vw, 785px\" \/><\/a><\/p>\n\n<h2><span style=\"font-weight: 400;\">What Is Holiday Premium Pay?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Holiday premium pay refers to the extra pay organizations give employees who agree to work on holidays. American employees who work on a holiday are eligible for at least 2 hours of holiday pay.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Those who work on a flexible schedule are eligible for up to 8 hours of holiday pay. If they work more than 8 hours on holiday, the extra time is compensated with compensatory time off.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Those who work according to a compressed schedule get up to 9 or 10 hours of holiday pay according to their work schedule.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What Is Overtime?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Overtime is the extra working hours by employees after their regular shift hours. It is only considered when employees are asked to work extra by the management.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Holiday premium pay is usually equal to the basic pay rate provided on an hourly basis. Overtime pay is usually 1.5 times the basic pay as per the hourly rate.\u00a0\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Do Corporate Companies Pay Overtime and Holiday Pay to Their Employees?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Premium pay rates can be different for different organizations. Managers can implement <\/span><strong><a href=\"https:\/\/www.attendancebot.com\/blog\/overtime-tracking\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=holiday-premium-pay\" target=\"_blank\" rel=\"noopener\">overtime tracking<\/a><\/strong><span style=\"font-weight: 400;\"> software to calculate overtime hours without any issues. Similarly, the holiday pay provisions can be included in the <\/span><strong><a href=\"https:\/\/www.attendancebot.com\/blog\/hrm-software\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=holiday-premium-pay\" target=\"_blank\" rel=\"noopener\">HRM software<\/a><\/strong><span style=\"font-weight: 400;\">, which handles the payroll process.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, an employee eligible for a holiday pay of 8 hours at $6 per hour works for 9 hours on Eid, which is a holiday. Suppose they work for 45 hours in the entire week; the employee will be eligible for $270 as compensation and an additional $48 as holiday premium pay. A further $12.5 will be provided to the employee as overtime for working 5 hours extra as per additional overtime.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employees who work extra hours on holiday will be eligible for the same overtime as they would get on any regular day. Usually, companies recommend that employees not work beyond the usual hours on holidays.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-195100 aligncenter\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/themes\/veen\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Working-Remotely-Image..jpg\" alt=\"Remote Work\" width=\"950\" height=\"500\" data-srcset=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Working-Remotely-Image..jpg 950w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Working-Remotely-Image.-300x158.jpg 300w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Working-Remotely-Image.-768x404.jpg 768w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Working-Remotely-Image.-100x53.jpg 100w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Working-Remotely-Image.-700x368.jpg 700w\" data-sizes=\"auto, (max-width: 950px) 100vw, 950px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The key differences between holiday premium pay and overtime are highlighted below:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Holiday Premium Pay<\/b><\/td>\n<td><b>Overtime\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Holiday Premium Pay is the payment employees receive for rendering their duties on a holiday.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">By definition, overtime is the amount payable to an employee who has worked for more than 40 hours per week. The overtime amount is decided based on the number of extra hours employees work in a particular week.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">A holiday premium pay can also be paid in the form of PTO (Paid Time Off) that an employee is given on holiday. It is also referred to as <\/span><strong><a href=\"https:\/\/www.attendancebot.com\/toil\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=holiday-premium-pay\" target=\"_blank\" rel=\"noopener\">Time Off in Lieu<\/a><\/strong><span style=\"font-weight: 400;\">. Employees who have worked on a holiday can receive paid leave on any weekday they choose.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Overtime hours can only be paid out, and are not convertible to paid leaves or paid time off.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">If HR professionals need to pay a premium rate, it can be calculated according to their organization&#8217;s double-time pay or overtime pay rules. Holiday premium pay is not to be accounted for in the overtime pay calculation. Also, the organization does not have to provide holiday pay to employees who choose compensatory time off instead of a holiday premium.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">As per FLSA (Fair Labor Standards Act), employees get 1.5 times the standard hourly wages for every hour that is considered to be overtime hours by the organization.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">For example, an employee works for 8 hours on holiday apart from the regular 40 hours. In this case, if they are paid 2 times the regular wages, it will not be accounted for in the overtime wages as they already receive 2 times the regular pay as a holiday premium pay.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">For example, a non-exempt employee normally completes 40 hours of work in a week. But they work 48 hours one week by putting in 2 extra hours from Monday to Thursday. Their monthly overtime pay will include the 8 extra hours they worked that week.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">How to Calculate Premium Pay for Holiday Work and Overtime?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An employee may work on holidays and extra (overtime) in a particular month. In such cases, the final payment calculation could be slightly complex. HR professionals can follow federal laws and create a payment policy in such cases. The <a href=\"https:\/\/www.attendancebot.com\/interactive-hr-tools\/overtime-wage-calculator.html\"><strong>payment policy<\/strong><\/a> should be such that it deals with the extra work hours fairly and brings everyone on one page. It should also be in accordance with the <\/span><strong><a href=\"https:\/\/www.attendancebot.com\/blog\/your-guide-to-creating-and-managing-a-leave-policy\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=holiday-premium-pay\" target=\"_blank\" rel=\"noopener\">leave policy<\/a><\/strong><span style=\"font-weight: 400;\"> of an organization.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">HR professionals must create a comprehensive <\/span><b>premium pay<\/b><span style=\"font-weight: 400;\"> policy for holidays. The policy must address these things:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The days for which the employees can apply for a paid leave after working on holiday\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the company offers paid or unpaid holidays<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are employees eligible for holiday premium pay after working on a holiday?<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which rules are applicable if a holiday falls on the weekend?<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which rules are applicable if an employee has already applied for leave on a holiday?\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the holiday falls on a non-working day like the weekend, the employees are eligible for an \u2018in-lieu of\u2019 holiday. In-lieu holiday means the paid leave they can take on any working day after working on a holiday.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-195075 aligncenter\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/themes\/veen\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Work-from-Home-Policy-Featured-Image.jpg\" alt=\"Work from Home \" width=\"950\" height=\"500\" data-srcset=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Work-from-Home-Policy-Featured-Image.jpg 950w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Work-from-Home-Policy-Featured-Image-300x158.jpg 300w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Work-from-Home-Policy-Featured-Image-768x404.jpg 768w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Work-from-Home-Policy-Featured-Image-100x53.jpg 100w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2021\/07\/Work-from-Home-Policy-Featured-Image-700x368.jpg 700w\" data-sizes=\"auto, (max-width: 950px) 100vw, 950px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">FAQs on Holiday Premium Pay<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Do employees get paid extra for working on a holiday?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Extra pay depends upon whether the organization offers a premium to pay for working during a holiday. If an employee thinks that they are eligible for it but are not being provided with the same, they should go through their employment contracts and contact their HR department.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is holiday premium pay for federal employees?\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As per the US Department of Commerce, federal employees who work on holidays are eligible for extra pay or double time. It is considered a holiday premium pay and does not include the work hours that an employee has completed as overtime.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employees are eligible to receive a payment equal to the payment of the regular days if they do not work on a public holiday. It is because all public holidays are paid holidays.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is the difference between holiday premium pay and overtime?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Holiday premium pay is for working on holidays. The working hours covered in holidays are considered to be non-overtime hours.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, over time refers to the extra hours an employee works after completing the working hours of a day. The total overtime hours are calculated on a weekly basis. For example, if an employee works 44 hours a week, the overtime hours will be 4 hours (44 \u2013 40 = 4).\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What happens if employees don\u2019t work on a scheduled holiday?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If employees are expected to work on a holiday but are unable to due to illness or any other critical reason, they can convey the same to their HR. If the <\/span><strong><a href=\"https:\/\/attendancebot.freshdesk.com\/support\/solutions\/articles\/17000067588-taking-time-off\" target=\"_blank\" rel=\"noopener\">leave<\/a><\/strong><span style=\"font-weight: 400;\"> is approved, they will be given a paid or unpaid leave depending on company policy. If their leave is rejected, it will be considered AWOL (<\/span><span style=\"font-weight: 400;\">Absence<\/span><span style=\"font-weight: 400;\"> Without Leave), and they will not be paid for that particular day.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is a night&#8217;s pay?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A night\u2019s pay is the special pay provided to the employees who work at night while completing their holiday work hours or overtime. Night pay is provided in addition to overtime or holiday premium pay.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many factors must be considered when deciding which employees qualify and which do not for holiday premium pay. Firstly, they must investigate whether the employment contract provided by their organization mentions <\/span><strong><a href=\"https:\/\/www.attendancebot.com\/blog\/holiday-pay\/?utm_source=blog&amp;utm_medium=in-line&amp;utm_campaign=holiday-premium-pay\" target=\"_blank\" rel=\"noopener\">holiday pay<\/a><\/strong><span style=\"font-weight: 400;\">. If it is mentioned, they can refer to FLSA (Fair Labor Standards Act) to figure out the holiday premium pay rate.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.attendancebot.com\/?utm_source=blog&amp;utm_medium=banner&amp;utm_campaign=holiday-premium-pay&amp;utm_content=final\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-197416 size-full\" src=\"https:\/\/blog.attendancebot.com\/wp-content\/themes\/veen\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/01\/20220217_145225_0000.png\" alt=\"simplified leave tracking with AB\" width=\"785\" height=\"128\" data-srcset=\"https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/01\/20220217_145225_0000.png 785w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/01\/20220217_145225_0000-300x49.png 300w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/01\/20220217_145225_0000-768x125.png 768w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/01\/20220217_145225_0000-100x16.png 100w, https:\/\/blog.attendancebot.com\/wp-content\/uploads\/2022\/01\/20220217_145225_0000-700x114.png 700w\" data-sizes=\"auto, (max-width: 785px) 100vw, 785px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Asking employees to work holidays is a big task. But how is holiday premium pay different from overtime? Learn here.<\/p>\n","protected":false},"author":1,"featured_media":147348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-198051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-leave-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How is Holiday Premium Pay Different from Overtime? | AttendanceBot<\/title>\n<meta name=\"description\" content=\"Asking employees to work holidays is a big task. But how is holiday premium pay different from overtime? 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