Holiday Pay Calculator

Working on a holiday? Calculate exactly how much extra you’ll make with time-and-a-half or double-time premium rates, and see your actual take-home pay after taxes.

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Overtime & Holiday Policy Note

This calculator assumes your regular hours determine your overtime (over 40 hrs). Under the FLSA, holiday hours that are paid at a premium rate generally do not need to be counted toward the 40-hour threshold for weekly overtime. Always check your specific employee handbook.

Understanding Holiday Pay

Working on a national holiday means missing out on time with family and friends. To compensate for this sacrifice, many employers offer holiday pay—a premium wage rate applied to hours worked during designated calendar holidays.

Whether you are earning time-and-a-half serving tables on Thanksgiving or double-time managing a retail store on Christmas, holiday pay can provide a significant boost to your paycheck. However, the rules surrounding holiday pay are often misunderstood because they rely heavily on employer policy rather than federal law.

Federal Law and Private Employers

The most surprising fact about holiday pay in the United States is that the Fair Labor Standards Act (FLSA) does not require private employers to pay for time off on holidays, nor does it require them to pay a premium rate for working on a holiday.

Under federal law, holidays like Christmas or Independence Day are treated just like any other business day. If a private employer chooses to close their doors on Thanksgiving, they are not legally obligated to pay their hourly employees for that day off. If they choose to stay open and require employees to work, they are only legally required to pay the standard regular hourly rate.

Why do so many employers offer it, then?

Holiday pay is offered almost entirely as a fringe benefit to attract and retain workers. It is a matter of company policy or a union contract, not federal mandate. If an employer’s handbook states they will pay time-and-a-half for holidays, they are legally bound to follow their own contract, but the government did not force them to create that policy.

Holiday Pay Rates Explained

When employers do offer premium pay for working on a holiday, they typically use one of two multiplier systems:

Time-and-a-Half (1.5x)

This is the most common holiday premium. You are paid your regular hourly rate, plus an additional 50%.

Double-Time (2.0x)

Less common but highly lucrative, double-time pays exactly twice your regular hourly rate. This is often reserved for major holidays like Christmas Day or Thanksgiving, or negotiated heavily in union contracts for tradespeople and nurses.

How Holiday Pay Interacts with Overtime

A major point of payroll confusion occurs when an employee works a holiday and also works more than 40 hours in the same week. Do the holiday hours count toward the 40-hour overtime threshold?

Under the FLSA, premium holiday pay generally offsets overtime pay. If your employer already paid you time-and-a-half (or more) for working the holiday, those hours are generally excluded from the 40-hour standard overtime calculation to prevent “pyramiding” (getting paid overtime on top of premium time).

• You work 8 hours on Monday (Labor Day) and are paid 1.5x.
• You work 8 hours Tuesday through Friday (32 hours).
• Total physical hours worked: 40.
• You work 8 hours on Saturday. Total physical hours: 48.

Because the 8 hours on Monday were already paid at a premium rate, many employers will not count them toward your 40-hour regular threshold. Therefore, Saturday’s hours might only be paid at straight time (since Tuesday-Saturday equals 40 non-premium hours). Always check your specific employee handbook, as generous employers may choose to stack them anyway.

Federal Holidays and Government Employees

While private employers have flexibility, federal government employees follow strict Office of Personnel Management (OPM) guidelines.

Federal employees who are excused from duty on a federal holiday receive their regular pay. If a federal employee is required to work on a holiday, they receive their regular pay plus premium pay equal to their regular rate (effectively resulting in double-time).

The 11 Recognized Federal Holidays:

• New Year’s Day (Jan 1)
• Martin Luther King Jr. Day (3rd Mon in Jan)
• Presidents’ Day (3rd Mon in Feb)
• Memorial Day (Last Mon in May)
• Juneteenth (June 19)
• Independence Day (July 4)

• Labor Day (1st Mon in Sept)
• Columbus Day / Indigenous Peoples’ Day (2nd Mon in Oct)
• Veterans Day (Nov 11)
• Thanksgiving Day (4th Thurs in Nov)
• Christmas Day (Dec 25)

Even though these are “federal” holidays, private companies like banks, schools, and corporate offices often use this exact list to determine their own paid days off or premium wage days. Retail and hospitality workers, however, are frequently required to work these days due to consumer demand.

Frequently Asked Questions

Clear answers about holiday wages, overtime rules, and taxes.

Is my employer required to pay me for holidays?

If you work for a private company, federal law (FLSA) does not require your employer to pay you for time off on holidays, nor does it require them to pay a premium rate if you work the holiday. Holiday pay is generally a matter of company policy or union agreement. However, if your employer's official handbook promises time-and-a-half for holidays, they are legally bound to honor their own contract.

What is the difference between time-and-a-half and double-time holiday pay?

Time-and-a-half pays your regular rate plus an additional 50% (a 1.5x multiplier). If you make $20/hr, time-and-a-half is $30/hr. Double-time pays exactly twice your standard rate (a 2.0x multiplier). If you make $20/hr, double-time is $40/hr. Time-and-a-half is the standard premium for most retail and service jobs, while double-time is often reserved for major holidays (like Christmas) or negotiated in union contracts.

How do holiday hours count toward my overtime calculation?

This depends on your employer. Under standard FLSA rules, if you are already paid a premium rate (like 1.5x) for working a holiday, those specific hours do not have to count toward your 40-hour weekly threshold for standard overtime. This prevents "pyramiding," where an employee gets paid overtime on top of premium holiday time. However, some generous employers choose to count them anyway. Always check your employee handbook.

What holidays are most commonly paid by employers?

The "Big Six" holidays that are most commonly observed and paid by private employers are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Many companies also observe MLK Day, Presidents' Day, and the day after Thanksgiving (Black Friday).

How is holiday pay taxed and what will be withheld?

Holiday pay is taxed exactly like regular income. It is subject to Federal Income Tax, State Income Tax (if applicable), Social Security (6.2%), and Medicare (1.45%). Because holiday premium pay increases your gross paycheck for that specific week, your payroll software may automatically withhold federal taxes at a slightly higher bracket for that single paycheck, but it will balance out when you file your annual tax return.