What is Holiday Pay?

Holiday pay is a voluntary benefit or compensation that an employer offers employees during holidays, such as Christmas, Labor Day, or Thanksgiving. Holiday pay can take many forms. For instance, some employers offer fully or partially paid time off during holidays. 

While some businesses have the luxury of closing during holidays, many don’t. Companies that have to remain open during the holidays offer their employees the opportunity to earn more by working on a recognized holiday. 

Typically, these businesses offer time-and-a-half hourly rates, double-time pay, or another reward as an incentive to motivate employees during times when most people would generally choose to take time off.