Working on Thanksgiving, Christmas or the Fourth of July often pays a premium, but how much depends on your employer’s policy — and on how that premium fits with weekly overtime. This calculator handles the common cases: a holiday rate of straight time up to triple time, paid holiday hours for a day off, and the three ways employers treat a holiday week that runs past 40 hours.
How to use the holiday pay calculator
- Enter your hourly rate and the holiday rate your employer pays for hours worked (1.5× is most common).
- Enter the hours worked on the holiday and any paid holiday hours not worked, such as 8 hours of holiday pay for a day off.
- Enter the other hours worked that week and the overtime threshold.
- Choose how overtime is handled when holiday hours push the week over the threshold.
How holiday pay is calculated
Hours worked include the holiday hours. Paid holiday hours that were not worked add pay but no overtime hours.
Three overtime treatments
- Credit (federal minimum): a holiday premium of at least 1.5× can be counted toward the overtime premium owed, so you receive whichever is larger rather than both.
- Stack: overtime is paid on top of the holiday premium. Many union contracts and some employer policies do this.
- No overtime: for exempt employees or weeks that stay under the threshold.
Worked example
$18.00 an hour, 8 hours worked on Thanksgiving at time and a half, plus 40 other hours that week.
Hours worked = 48, so straight time is 48 × $18.00 = $864.00. The holiday premium is 0.5 × $18.00 × 8 = $72.00, making the Thanksgiving shift worth $216.00.
Eight hours are over 40, so $72.00 of overtime premium is owed. Under the credit method the $72.00 holiday premium covers it, and the week pays $936.00. Under the stack method both premiums are paid: $1,008.00.
If instead you take the holiday off with 8 hours of holiday pay and work 32 other hours, the week pays 32 × $18.00 + 8 × $18.00 = $720.00 and there is no overtime, because only 32 hours were worked.
Holiday rates at a glance
| Hourly rate | 1.5× | 2× | 2.5× | 8 h at 1.5× | 8 h at 2× |
|---|---|---|---|---|---|
| $15.00 | $22.50 | $30.00 | $37.50 | $180.00 | $240.00 |
| $18.00 | $27.00 | $36.00 | $45.00 | $216.00 | $288.00 |
| $20.00 | $30.00 | $40.00 | $50.00 | $240.00 | $320.00 |
| $25.00 | $37.50 | $50.00 | $62.50 | $300.00 | $400.00 |
| $30.00 | $45.00 | $60.00 | $75.00 | $360.00 | $480.00 |
Questions to ask your employer
Which hours count as holiday hours?
Overnight shifts are the tricky case. Some policies pay the premium for hours worked between midnight and midnight on the holiday; others pay it for the whole shift that starts on the holiday.
Do you have to work the day before and after?
Many paid-holiday policies require you to work your scheduled shifts on either side of the holiday to receive holiday pay for a day off.
Is the premium creditable?
If your pay stub shows a holiday rate of 1.5× and no separate overtime line for a long holiday week, your employer is probably using the crediting rule. That is legal under the FLSA as long as the premium is at least 1.5 times the regular rate.
Gross pay before taxes. Holiday pay rules come from employer policy, contracts and some state laws; confirm the details with your employer.
For a normal week, the overtime calculator handles daily and weekly rules. The time and a half calculator gives quick 1.5× rates, and the shift differential calculator covers night and weekend premiums that must be included in the overtime rate. Check upcoming holiday dates on the printable calendar.
Frequently asked questions
Is holiday pay required by law?
Not under federal law. The Fair Labor Standards Act does not require private employers to pay for holidays off or to pay a premium for working on a holiday. Holiday pay comes from company policy or a union contract; a few states have narrow rules.
How is time and a half for a holiday calculated?
Multiply your hourly rate by 1.5, then by the hours you worked on the holiday. At $18.00 an hour, 8 holiday hours at time and a half pay 8 × $27.00 = $216.00, which is $72.00 more than straight time.
Do holiday hours count toward overtime?
Hours you actually work on a holiday count toward the 40-hour overtime threshold. Paid holiday hours you do not work do not count. If your employer pays a holiday premium of at least 1.5 times your rate, that premium can be credited toward the overtime you are owed (29 CFR 778.203 and 778.219).
What is double time and a half?
It is 2.5 times the regular rate, sometimes written into union contracts for working major holidays. At $20 an hour it is $50 an hour. Some employers describe it as holiday pay for the day plus time and a half for the hours worked.
Which days are paid holidays?
Your employer decides. Many private employers follow some or all of the 11 federal holidays, most often New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.