What Is Holiday Pay Pay? What Employers Need To Know About Holiday Pay

‍When you think of work, you think of the daily grind and regular pay. But what about holiday pay? Do workers get paid when there’s a public holiday? How much? Does it differ from country to country?

If you are reading this article, then you’re probably an employee and you will be receiving your usual pay packet after the company’s year-end. However, what if you were a consultant or contractor?

Would that change your holiday allowance? Easter, Thanksgiving, New Year, Diwali, You see a lot of festivals around the world each year. Some of them have public holidays attached to them as well.

But do workers get paid for these days off and what exactly is Holiday Pay? Keep reading to find out more!

What Is Holiday Pay?

The amount that employees receive when they are not at work due to a public holiday or other vacation time is called holiday pay. It is a part of the total remuneration employees receive for the time they work.

The amount of holiday pay is usually calculated in one of two ways either as a percentage of the employees total earnings for the time worked up until the day of the holiday or as a fixed amount per day of holiday.

Holiday Pay Laws

Every country and jurisdiction has their own holiday pay laws or guidelines. You should always follow these to avoid any lawsuit or other legal action. The US, for example, has federal laws regarding holiday pay.

The federal holiday rate of pay is the rate of your regular earnings (hourly rate or salary) times 1.5. So, if you earn $10 per hour, you would receive $15 per hour for your holiday pay. Similarly, for Canada, you need to follow the standard provincial or territorial holiday pay laws.

For the UK, you need to comply with the national minimum standards for holiday pay. The EU mandates that all workers, including those in the UK, receive at least 20 paid vacation days per year.

Common Paid Holidays

  • Chinese New Year: This holiday marks the beginning of the new year in the Chinese calendar and is celebrated between late January and mid-February.
  • Easter: This holiday, which is celebrated by both Christians and non-Christians, falls on a Sunday between March 22 and April 25.
  • Columbus Day: This holiday is celebrated in the United States and celebrates the arrival of explorer Christopher Columbus in the Americas.
  • Harvest Day: This holiday is celebrated in the United States and is a holiday for those working in the agricultural industry.
  • Halloween: This holiday is celebrated by children dressing up in costumes and going door-to-door asking for candy or other treats.
  • Thanks Giving: This holiday celebrates a time of year where harvest was plentiful and is celebrated on the last Thursday of November in the United States.

Holiday Entitlement

Employees are entitled to public holidays when working for a company in their home country. There may be a few exceptions to this rule, but this is the general rule of thumb.

For example, in the United States, every employee is entitled to be paid for 10 public holidays per year, and this is true for many other countries as well.

Keep in mind that there is a difference between a holiday and a paid holiday. A holiday is a day that workers are not required to work because of a civic or religious holiday. A paid holiday is a day on which employees are paid for their time off work.

Company’s Policy On Holiday Pay

You should communicate the company’s holiday pay policy to all employees. This can be done in the employment contract or the handbook, or with a separate document that details everything an employee might need to know about their employment.

You should also inform your workers when they start working for your company. You need to be careful, though, as you don’t want to discriminate against employees based on their religion or culture.

For example, if your company’s policy is to pay only Christians for Christmas, then you’re discriminating against workers of other religions.

Who Is Eligible For Holiday pay?

All employees who work a certain number of hours per week should be paid for public holidays. In the United States, for example, full-time employees should receive holiday pay.

In the UK, full-time employees must receive at least 20 days of paid holiday per year, while part-time employees must receive 5 days paid holiday per year.

When Are Employees Paid For Holidays?

There is no set rule on when employees should be paid for public holidays. Although in some cases, they are paid on the day they are off, in many countries employees are paid on their next wage day.

What Religious Accommodations Do You Need To Make?

Companies that operate globally need to make accommodations to workers with different cultural and religious backgrounds. This can be applied to holiday pay as well.

For example, if a Jewish employee requests that you pay them for Rosh Hashanah and not for Columbus Day, then you need to make that adjustment. Communication is key here.

You also need to make sure you are familiar with the laws of your country as well as the laws of the countries where most of your employees are located.

What Are The Benefits Of Providing Holiday Pay To Employees?

The benefits of providing holiday pay to employees are many, like it’s Improved employee retention. Happy employees are less likely to leave the company.

Also it’s reduced absenteeism. Employees who are happy with their jobs and have benefits will be less likely to call in sick. It’s also provide better public relations.

Bottom Line

Holiday pay is a benefit that employers can provide to employees during holidays. This can help reduce absenteeism during certain times of the year, such as the winter and summer holidays.

Employers are responsible for determining the amount of pay given to employees for holidays, as well as for communicating this information to employees. When companies provide holiday pay, it can help them recruit and retain better employees.

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