The HR Dictionary

Holiday Pay

Holiday pay is any alternative compensation an employer provides employees while they are on vacation. It could come in the form of fully or partially compensated time off, a bonus or higher hourly pay for work done on a holiday, or all of the above. The most widely held belief on holiday pay in the United States is that businesses should pay workers who work on holidays ‘time-and-a-half,’ or 150 percent of their regular hourly salary.

Managing such compensation manually for employees can be challenging and error-prone. Hence, most organizations utilize the Pay Policy configurations available in Advanced HR software to manage the processing of payroll for holiday pay automatically.