Holiday Pay Calculator for US Employees

Does federal law require holiday pay?

No. The Department of Labor states that the Fair Labor Standards Act does not require payment for time not worked, such as vacations, sick leave or holidays, federal or otherwise, and does not require extra pay for weekend or night work. These benefits are matters of agreement between an employer and an employee. The same Department of Labor page notes one exception: on some government contracts, a Davis-Bacon or Service Contract Act wage determination can specify holiday pay for certain job classifications.

So whether you are paid for a holiday you did not work, and whether you earn a premium for working one, depends on your employer’s written policy, your employment contract or your union agreement. Once the employer has promised the pay, it is generally owed as wages under that promise, but the promise is where the right comes from, not the FLSA. This page does not list state holiday rules, because it publishes only rules read from a state agency’s own page.

How do you calculate holiday pay?

Multiply your hourly rate by the holiday hours, and by the premium multiplier if you worked the day. At $20 an hour, an 8-hour paid holiday you did not work is $20 × 8 = $160.00. Working the same day at time and a half is $20 × 8 × 1.5 = $240.00, and at double time $320.00.

For a salaried employee, divide the annual salary by the hours it covers to get an hourly equivalent. The calculator uses 2,080 hours a year (52 weeks of 40 hours) unless you change it. An exempt salaried employee is normally paid the same salary in a week that contains a paid holiday, so the equivalent rate matters mostly when a premium for working the holiday applies.

How is holiday pay usually calculated?

Most employers pay a full-time employee their normal scheduled day, usually 8 hours at the regular hourly rate, and pay a premium multiplier such as 1.5x or 2x on top for anyone who works the holiday. Part-time and temporary staff are often prorated or excluded. All of this is policy, so the handbook or contract is the authority.

• Hourly, not worked: rate × scheduled holiday hours.
• Hourly, worked: rate × hours worked × the premium multiplier in the policy.
• Salaried: the usual salary for the period, plus any premium the policy sets for working the day.
• Part-time: the policy may prorate by average hours, require a minimum service period, or exclude the benefit.

How do I calculate my paycheck with holiday pay?

Add the holiday pay to the pay for the hours you worked on the other days, then add any overtime premium still owed. With 32 hours worked plus a paid holiday at $20, gross pay is $640.00 + $160.00 = $800.00. Taxes and deductions then come off that gross figure; this calculator stops at gross pay.

Holiday pay is wages like any other pay. It is subject to the same income tax withholding, Social Security and Medicare as the rest of the paycheck, and it counts in the pay period in which it is paid.

Is holiday pay 8 hours?

Not by law. Eight hours is the usual figure because many full-time schedules are five 8-hour days, so employers pay one normal day. An employee who normally works 10-hour days may be paid 10 hours, and a part-time employee may be paid fewer or none. Enter the number of hours your policy pays and the calculator uses it.

Holiday pay and overtime: do holiday hours count toward 40?

Only hours you actually work count toward the 40-hour overtime threshold. Holiday hours that are paid but not worked are not hours worked, so a paid holiday with 40 hours worked on the other days produces no overtime: $960.00. If you work the holiday, those hours count, and the week reaches 48 hours.

The last row follows 29 U.S.C. 207: a premium of at least one and one-half times the regular rate for work on a holiday is left out of the regular rate and can be credited toward overtime owed. Here the holiday premium is $80.00 and the overtime premium owed on 8 hours would be $80.00, so nothing more is due. At the regular rate the holiday carries no premium to credit, so the 8 overtime hours add $80.00.

Time and a half vs double time on holidays

The multiplier is whatever the employer promised. Time and a half is 1.5 times the hourly rate and double time is 2 times it. Neither is required by the FLSA for a holiday. Check the policy, then choose 1.5x, 2x or a custom multiplier such as 2.5x in the calculator.

Federal holidays in 2027 and their observed dates

The Office of Personnel Management lists 11 federal holidays in its 2027 table. Three fall on a weekend and are observed on a weekday: Juneteenth, Independence Day and Christmas. Private employers are not bound by the federal list; many follow it, so use it as a reference and check your own policy.

Common holiday pay mistakes

Most holiday pay errors come from treating a company policy as if it were a legal rule, or from miscounting hours worked. These are the ones to check first on any paycheck that includes a holiday.

• Assuming the law requires holiday pay or a premium. The FLSA does not; the policy or contract does.
• Counting a paid holiday that was not worked toward the 40 hours. It is not an hour worked.
• Forgetting that a worked holiday adds to weekly hours and can push the week into overtime.
• Applying the multiplier to all hours of the week instead of only the holiday hours.
• Using a salary divided by the wrong number of hours. A 2,080-hour year assumes 40 hours a week for 52 weeks.
• Treating the observed date and the calendar date as the same day when a holiday falls on a weekend.

When to ask a professional

If a holiday was promised and not paid, start with the written policy or contract and your payroll department. For a disagreement about overtime or a state rule, your state labor department or the Department of Labor’s Wage and Hour Division can explain what applies. Union members should check the collective bargaining agreement, which often sets its own holiday terms.