Paid holidays are days off that employees still get paid for. Employers or government regulations usually decide which holidays qualify, and they often include major national and cultural celebrations like New Year’s Day, Independence Day, and Christmas.
These days off give employees time to relax, spend time with family, or celebrate traditions—without missing a paycheck. Some employers even offer extra pay for those who work on holidays.
Benefits of paid holidays
Paid holidays aren’t just about time off. They also:
- Support work-life balance: Help prevent burnout and keep employees happy.
- Improve mental health: A break from work reduces stress and improves focus.
- Increase productivity: Well-rested employees come back energized.
- Show appreciation: Paid holidays are a way for employers to recognize employees’ hard work.
Commonly observed paid holidays
Many businesses offer paid time off for these holidays:
- New Year’s Day
- Martin Luther King Jr. Day
- Presidents’ Day
- Memorial Day
- Independence Day
- Labor Day
- Columbus Day
- Veterans Day
- Thanksgiving Day
- Christmas Day
Some companies also offer paid time off for religious holidays, birthdays, or personal days.
How businesses benefit from offering paid holidays
Paid holidays aren’t just a perk for employees—they help businesses, too. Here’s how:
- Higher Employee Satisfaction: Time off boosts morale and job performance.
- Better Recruitment & Retention: Competitive holiday policies attract top talent and reduce turnover.
- Increased Productivity: Well-rested employees get more done.
- Legal Compliance: Following labor laws helps businesses avoid legal trouble.
- Stronger Company Culture: Holiday celebrations build teamwork and a positive work environment.
How do paid holidays affect hourly vs. salaried employees?
Companies handle paid holidays differently, but here’s a general breakdown of how they affect hourly and salaried employees:
| Hourly Employees | Salaried Employees |
| Fixed Pay: If given the day off, they usually receive their regular hourly pay. | Fixed Pay: They get their full salary, whether it’s a holiday or not. |
| Extra Pay: Some companies offer holiday pay for those who work. | Work Expectations: May be expected to work or use PTO. |
| Variable Income: Holiday pay may depend on company policies or work schedule. | Flexibility: Some can work a holiday in exchange for a different day off. |
Paid holidays benefit everyone. Employees get a well-deserved break, and businesses see happier, more productive teams.
