How Much Extra Is Holiday Pay? Here’s What You Need to Know About Holiday Pay Rates

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So, you’re wondering how much extra you actually get paid when you work on a holiday. The short answer is: it depends. There’s no federal law in the US that forces private employers to pay extra just because it’s a holiday. But most companies that do offer holiday pay usually go with time-and-a-half (1.5 times your regular hourly rate) or sometimes double time (2x). A few bosses might even throw in a flat bonus or a paid day off instead. Let’s break it all down so you know exactly what to expect when you clock in on Thanksgiving, Christmas, or New Year’s Day.

First off, let’s talk about the most common rate: time-and-a-half. This is when you get your normal hourly wage plus an extra half. So if you make $20 an hour, working a holiday gets you $30 per hour. It’s the same rate as overtime under the Fair Labor Standards Act, but note—overtime is for working more than 40 hours in a week, while holiday pay is a separate perk. Some employers combine them, but it’s rare. For example, if you work a holiday and it pushes you over 40 hours, you might get time-and-a-half for the holiday hours plus overtime for the extra hours on top. That’s called “double-dipping” and it’s not legally required.

Double time is less common but still exists, usually in union contracts or for very generous companies. That means you get twice your normal pay—$40 an hour if you normally earn $20. You’ll often see double time on major holidays like Christmas Day or Thanksgiving, especially in industries like retail, hospitality, and healthcare. But again, no law says they have to give it to you. Another twist: some companies don’t pay extra at all. Instead, they offer a paid holiday off, meaning you get your regular pay for the day without working. If you do have to work that day, you might get comp time (extra time off later) or a flat bonus like $100 or $200.

So what about the difference between holiday pay and overtime? Super important. Overtime is mandated by the federal government for hourly workers who go over 40 hours in a week. Holiday pay is purely voluntary from your employer. And here’s a big gotcha: if your company says they pay “holiday pay” but you’re not scheduled to work, you might only get the day off without pay if you’re an hourly worker. Salaried folks usually get paid holidays as part of their salary, but hourly employees only get paid for holidays if their employer’s policy says so.

Let’s get into some real-world examples. Say you work at a grocery store. Your contract says you get time-and-a-half for working on New Year’s Day. You work 8 hours at $15/hour—that’s $180 instead of $120. But if the store is closed and you don’t work, you get nothing unless they offer a paid holiday. Many companies do offer 6 to 8 paid holidays per year (like New Year’s, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas). If you work on one of those paid holidays, you might get the day’s pay plus the extra holiday rate—so you’d effectively get double pay or more.

Questions related to how much extra is holiday pay

Do I automatically get holiday pay if I work a federal holiday?
Nope. Federal holidays like Christmas or Independence Day don’t guarantee extra pay. Only federal employees are entitled to federal holiday pay (which is time-and-a-half for scheduled work). Private companies can decide their own policy. Check your employee handbook or contract.

Is holiday pay the same as overtime for purposes of FLSA?
No. The FLSA requires overtime only for hours over 40 in a workweek. Holiday pay is a bonus, not a legal requirement. So if you work a holiday but only 30 hours total that week, you don’t get overtime—just whatever holiday rate your company offers.

Can I be forced to work a holiday without extra pay?
Yes, unless your contract says otherwise. Most states have no law requiring extra pay for holidays. However, some industries (like retail in certain states) have blue laws that restrict working on Sundays or holidays, but that’s about store hours, not pay.

What about double time on holidays—is that a thing?
It is a thing, but it’s rare. Check your union agreement or company policy. Some companies offer double time for working on the actual holiday (like Christmas Day) and time-and-a-half for the eve or adjacent days.

How do I calculate my holiday pay rate if I’m a part-time worker?
Same as full-time: multiply your regular hourly rate by the holiday multiplier (usually 1.5 or 2). But part-timers might not be eligible for paid holidays off. If you work the holiday, you get the extra rate only if the policy includes part-time staff. Always ask HR.

To wrap it up, there’s no single answer to “how much extra is holiday pay” because it varies by employer, industry, and even state. The most common is time-and-a-half, but double time and flat bonuses also pop up. Your best bet is to read your company’s holiday pay policy carefully and talk to your manager or HR. And remember, if you’re ever unsure, the U.S. Department of Labor has resources (but they don’t regulate holiday pay for private workers—so don’t rely on federal law).

Public Holiday Calendar.com Thank you for reading, I hope this article can help you fully understand how much extra holiday pay is. If you have more questions—like which holidays actually pay extra where you work—please contact us and your assistant will be happy to help.