What Is Holiday Pay?

Holiday pay is any alternative compensation that an employer gives to employees during holidays. It could either be a partially or fully paid time off or an additional bonus for working on holidays. 

Does the Law Mandate Holiday Pay?

Although international laws require employers to give paid time off during holidays, the US doesn’t. According to US law, employers are not required to give paid time off or pay additional compensation to workers who work during holidays as well. 

According to federal law, an employer should make reasonable accommodations for religious holidays but are not mandated by law to give additional time off or additional pay.

What Are Paid Holidays?

Paid holidays are defined as national, state, or religious holidays that employers have the option to give as paid days off. As mentioned earlier, federal law doesn’t require employers to give employees paid holidays. 

Some examples of paid holidays in the United States are: 

  • Christmas Eve
  • Christmas Day
  • New Year’s Eve
  • New Year’s Day
  • Veterans Day
  • Thanksgiving
  • Day After Thanksgiving
  • Victoria Day (Rhode Island only)
  • Labor Day
  • Columbus Day/Indigenous Peoples’ Day
  • Presidents’ Day
  • Memorial Day
  • Independence Day (observed)
  • Martin Luther King Day

keep track of holidays


Related Terms 
Paid Holidays