What is the holiday pay rate?

Your holiday pay rate depends on the employer’s policy or other applicable agreement. If your normal rate is $20 per hour, straight-time holiday pay is $20 per hour, time-and-a-half is $30 per hour, and double time is $40 per hour.

There is no single U.S. private-sector holiday rate that applies to every worker. To find how much holiday pay you earn per hour, multiply your regular hourly rate by the holiday multiplier your employer actually uses.

Holiday pay can mean different things depending on the employer. It may refer to pay for hours actually worked on a holiday, a premium such as time-and-a-half or double time, or paid holiday hours when no work is performed. The calculator above keeps those amounts separate so you can see how each part affects gross pay.

What is holiday pay?

Holiday pay is compensation connected with a holiday under an employer’s pay or leave policy. For one worker it may mean eight paid hours off at the normal rate. For another it may mean working the holiday and receiving a 1.5× or 2× premium. Some employers provide both a paid-holiday benefit and separate pay for hours actually worked.

In the U.S. private sector, the federal Fair Labor Standards Act does not generally require payment for time not worked on holidays, and it does not generally require extra premium pay merely because work occurs on a holiday. Those benefits are commonly determined by employer policy, a contract, or a collective bargaining agreement. State or local rules and certain government-contract requirements can add other obligations.

For the federal baseline, see the U.S. Department of Labor holiday-pay guidance.

How to use the Holiday Pay Calculator

1. Enter your regular hourly rate.
2. Enter the number of holiday hours you actually worked.
3. Enter the holiday multiplier from your employer’s policy. Use 1 for straight time, 1.5 for time-and-a-half, 2 for double time, or another stated multiplier.
4. If you also receive paid holiday hours when no work was performed, enter those hours separately.
5. Enter your other actual hours worked in the same workweek to see whether the total crosses the overtime threshold.

The result shows holiday-work pay, the premium portion, paid holiday not worked, total holiday-related gross pay, actual hours worked, and potential overtime hours.

Holiday pay formula

For hours actually worked on a holiday:

Holiday work pay = Regular hourly rate × Holiday multiplier × Holiday hours worked

The extra premium above straight-time pay is:

Holiday premium = Regular hourly rate × (Holiday multiplier − 1) × Holiday hours worked

For a simple paid holiday when no work is performed and the employer pays the normal hourly equivalent:

Paid holiday benefit = Regular hourly rate × Paid holiday hours not worked

Holiday pay example: time-and-a-half

Suppose you earn $25 per hour and work 8 hours on a holiday. If your employer pays time-and-a-half for holiday work:

• Holiday rate: $25 × 1.5 = $37.50 per hour
• Holiday work pay: $37.50 × 8 = $300
• Straight-time value of those 8 hours: $25 × 8 = $200
• Holiday premium portion: $300 − $200 = $100

If the employer also provides 8 paid holiday hours in addition to pay for hours worked, that separate benefit would add another $200 at the normal $25 rate in this simple example. Whether an employer offers both depends on its policy or agreement.

Holiday pay example: double time

At $20 per hour with an employer holiday multiplier of 2×, an 8-hour holiday shift would produce:

$20 × 2 × 8 = $320 of holiday-work pay

The straight-time portion is $160 and the additional holiday premium is another $160.

Straight time vs time-and-a-half vs double time

Holiday multiplier	$20 regular rate	8 holiday hours worked
1× straight time	$20/hr	$160
1.5× time-and-a-half	$30/hr	$240
2× double time	$40/hr	$320

These multipliers are calculation examples, not universal legal requirements. Use the multiplier promised by the employer or required by an applicable agreement or law.

Is holiday pay always time-and-a-half?

No. Federal law does not generally require private employers to pay 1.5× simply because an employee works on a holiday. A company may pay regular time, time-and-a-half, double time, another premium, or no special holiday premium, subject to applicable agreements and laws.

Time-and-a-half is more commonly associated with qualifying overtime under the FLSA. For the basic 1.5× formula and examples, read What Is Time and a Half?.

Holiday pay and overtime: do holiday hours count?

The key distinction is between hours actually worked and paid holiday hours when no work was performed. Under the general federal FLSA framework, overtime for covered nonexempt employees is based on hours worked over 40 in a workweek. Paid holiday hours for time not worked do not automatically become hours worked just because they appear on the paycheck.

The Department of Labor also explains that certain payments for holidays when no work is performed can be excluded from the regular rate used for federal overtime calculations. If an employee works on the holiday and also receives a separate holiday payment for the time off benefit, that holiday payment can also be excludable from the regular rate when the requirements are met.

See DOL Fact Sheet #56A on the regular rate for the federal framework.

If your actual hours worked exceed 40 or another applicable threshold, use the Overtime Pay Calculator as a separate planning tool. Real payroll can require additional regular-rate and premium-credit analysis.

Can a holiday premium reduce the overtime amount due?

Sometimes the interaction is more complicated than adding a holiday multiplier and an overtime multiplier together. Federal rules allow certain true premium payments for work on holidays or other special days to be excluded from the regular rate and, when regulatory requirements are satisfied, the extra premium can be creditable toward overtime compensation.

That is why this calculator flags potential overtime hours but does not automatically stack or offset holiday premium against overtime. The correct treatment depends on the actual premium structure and applicable rules. The Department of Labor’s FLSA Overtime Calculator Advisor on premium pay provides additional federal guidance.

Holiday pay for hourly employees

Hourly employees commonly see holiday pay handled in one of three ways: paid time off at the normal rate, a premium rate for hours actually worked on the holiday, or a combination of both. Eligibility can depend on full-time or part-time status, length of service, attendance before or after the holiday, scheduled hours, or other employer rules.

For hourly workers, this calculator is most useful when you know the employer’s exact holiday multiplier and whether a separate paid-holiday benefit is provided.

Do salaried employees get holiday pay?

Salaried employees can receive paid holidays, but the calculation may not look like an hourly holiday premium. A fixed salary may already continue through a paid holiday under the employer’s salary and leave policy. Some salaried workers can also receive additional premium pay, but the rules depend on the employer, employee classification, and applicable agreements.

This calculator is designed primarily for hourly-style holiday pay. If you are comparing salary with hourly compensation more broadly, see Salary vs Hourly Pay.

Do part-time employees get holiday pay?

Federal law does not generally require private employers to provide paid holidays to part-time employees. Employer policy can set eligibility rules for part-time workers, and contracts, collective bargaining agreements, state or local rules, or special government-contract requirements can change the result.

Holiday pay vs PTO

Holiday pay is compensation tied to a designated holiday. Paid time off (PTO) is a broader leave benefit that may be used for vacation, personal time, illness, or other approved absences depending on the employer’s plan. Some employers maintain a separate paid-holiday schedule; others use a combined PTO policy.

Holiday pay vs shift differential

A holiday premium is tied to working on a designated holiday. A shift differential is extra compensation tied to a less desirable or harder-to-staff schedule such as evenings, nights, or weekends. An employer may offer one, both, or neither, and its policy determines whether premiums can stack.

For night, evening, and weekend premiums, see Shift Differential Pay Rates.

How holiday pay may appear on a pay stub

Holiday compensation may appear as a separate earnings line such as “Holiday,” “Holiday Worked,” “Holiday Premium,” or a similar payroll label. A pay stub may also show the number of hours, rate, current-period amount, and year-to-date total. Payroll labels are not perfectly standardized.

For a full breakdown of earnings, taxes, deductions, and net pay, read What Is a Pay Stub?. For the difference between earnings before and after deductions, see What Is Gross Pay?.

Does holiday pay get taxed differently?

Holiday pay is compensation and generally increases gross wages. The amount withheld from a particular paycheck can depend on total taxable wages, payroll setup, filing information, deductions, and other factors. A holiday premium does not create a special tax-free category simply because the work occurred on a holiday.

To estimate take-home pay after federal withholding, Social Security, Medicare, and optional state or local taxes, use the Paycheck Calculator with Taxes.

Common holiday pay mistakes

• Assuming every holiday is time-and-a-half: Federal law does not generally impose that rule on private employers.
• Counting paid holiday hours as hours actually worked: Paid time off and worked hours are different concepts for federal overtime purposes.
• Automatically stacking a holiday premium and overtime premium: Premium-credit and regular-rate rules can make the calculation more complex.
• Ignoring employer eligibility rules: A policy may require specific employment status, scheduling, or attendance conditions.
• Using a generic multiplier: Enter the actual multiplier promised by the employer instead of assuming 1.5× or 2×.

Frequently asked questions

How do I calculate holiday pay?

For holiday hours actually worked, multiply the regular hourly rate by the employer’s holiday multiplier and then by the holiday hours worked. Add any separate paid-holiday benefit only if the employer’s policy provides one.

What is holiday pay for $20 an hour at time-and-a-half?

$20 × 1.5 = $30 per holiday hour worked. Eight hours at that rate would equal $240 before taxes and deductions.

What is holiday pay for $25 an hour at double time?

$25 × 2 = $50 per holiday hour worked. Eight hours would equal $400 before taxes and deductions.

Is holiday pay mandatory in the United States?

The FLSA does not generally require private employers to pay employees for holidays not worked or to pay an extra premium simply because work occurs on a holiday. Employer agreements, state or local rules, collective bargaining agreements, and certain federal-contract rules can create additional requirements.

Does holiday pay count toward overtime?

Hours actually worked on a holiday count as worked hours. Paid holiday hours when no work is performed generally do not count as hours worked for the federal 40-hour overtime threshold. The treatment of holiday premiums in the regular-rate and overtime calculation can require additional analysis.

Does the calculator include taxes?

No. The calculator estimates gross pay before taxes, benefits, retirement contributions, and other payroll deductions.

Calculate your holiday pay

Use the calculator at the top of the page with your actual hourly rate, holiday hours worked, employer multiplier, paid holiday hours, and other hours worked in the same week. The strongest estimate comes from matching the calculator inputs to the employer’s written holiday-pay and overtime policy.

This page provides general educational information and a payroll planning estimate. It is not legal, tax, payroll, or employment advice. Rules and employer policies can vary by jurisdiction, agreement, worker classification, and specific facts.