Holiday Pay Calculator (US): Time and a Half

Is holiday pay required?

Not by federal law. The U.S. Department of Labor says the Fair Labor Standards Act does not require payment for time not worked, such as vacations or holidays, federal or otherwise. Those benefits are generally a matter of agreement between an employer and the employee or the employee's representative.

The same goes for working on a holiday. Federal law has no holiday premium; a holiday is paid like any other day unless the hours push the week over 40, when ordinary overtime applies.

Three things can still require it:

Your contract, union agreement or handbook. If a written policy promises time and a half or double time on holidays, your state's wage or contract law may let you enforce it.
Federal contracts. Work on a contract covered by the Service Contract Act or the Davis-Bacon Act can carry holiday benefits set in the contract's wage determination.
State law. Check your state's labor department, because a state can set rules federal law does not.

U.S. Department of Labor, Holiday Pay.

How to calculate holiday pay

Holiday pay = hourly rate × holiday multiplier × hours worked on the holiday

At time and a half, $20.00 an hour becomes $30.00, so an 8-hour holiday shift pays $240.00, of which $160.00 is straight time and $80.00 is the holiday premium. At double time the same shift pays $320.00.

If you are paid a salary, find your hourly rate first: weekly salary ÷ the hours it is meant to cover. The salary to hourly calculator does this step.

Holiday pay and overtime

Hours you work on a holiday are hours worked, so they count toward the 40 that start federal overtime. What happens next depends on the size of the holiday premium.

A premium of at least 1.5x is treated as an overtime premium. It stays out of the regular rate, and the extra pay can be credited toward the overtime owed for that week.
A premium under 1.5x, such as 1.25x, is not. It has to be added into the regular rate, which raises the overtime rate for the week, and none of it can be credited.

Example at $20.00 an hour: 40 hours on other days plus 8 holiday hours at 1.5x is 48 hours. Overtime owed on the 8 hours over 40 is 8 × $10.00 = $80.00 on top of straight time. The holiday premium already paid $80.00 extra, so it covers that, and the week pays $800.00 + $240.00 = $1,040.00. That is the same as plain overtime would have paid.

The same week at 1.25x: the holiday hours pay $200.00, the regular rate becomes $1,000.00 ÷ 48 = $20.83, and overtime adds 8 × half of $20.83 = $83.33. The week pays $1,083.33.

Work 50 other hours plus the 8 holiday hours at 1.5x and the week is 58 hours. Overtime owed is 18 × $10.00 = $180.00; the $80.00 holiday premium is credited, so $100.00 more is owed, for $1,340.00 in all. That equals 40 hours at $20.00 plus 18 at $30.00.

29 CFR 778.203; 29 U.S.C. 207(e)(6) and 207(h)(2).

Paid holidays you do not work

Pay for a holiday you take off is not pay for hours worked. Federal law leaves it out of the regular rate, it does not count toward the 40 hours, and it cannot be used to pay overtime owed.

The regulation's own example: an employee earning $12.00 an hour is promised 8 hours' pay for Christmas, works 9 hours that day anyway and 50 hours in the week. He is paid $600.00 for the 50 hours plus $96.00 holiday pay, and is still owed $60.00 of overtime premium for the 10 hours over 40. Total: $756.00. Type $12.00, 9 holiday hours, 1x (no premium), 8 holiday pay hours not tied to work and 41 other hours above to see the same figures.

29 CFR 778.218 and 778.219(a)(2).

Federal employees

Most federal employees paid under title 5 of the U.S. Code, such as the General Schedule, are under a different law. An employee who works on a federal holiday is paid the basic rate plus a premium equal to the basic rate, which is double pay, for holiday work that is not over 8 hours and is not overtime. A federal employee who is required to work on a holiday is paid for at least 2 hours.

5 U.S.C. 5546(b) and (c).

Holiday pay for an 8-hour shift

Pay for 8 hours worked on a holiday at common hourly rates and premiums
Hourly rate	No premium	1.5x	2x	2.5x
$12.00	$96.00	$144.00	$192.00	$240.00
$15.00	$120.00	$180.00	$240.00	$300.00
$18.00	$144.00	$216.00	$288.00	$360.00
$20.00	$160.00	$240.00	$320.00	$400.00
$25.00	$200.00	$300.00	$400.00	$500.00
$30.00	$240.00	$360.00	$480.00	$600.00

Questions

Is holiday pay required by law?

Not by federal law. The Fair Labor Standards Act does not require pay for holidays, and it does not require a higher rate for working on one. Holiday pay is generally a matter of agreement between employer and employee, though a state law, union contract or federal contract can require it.

How do I calculate holiday pay at time and a half?

Multiply your hourly rate by 1.5, then by the hours worked on the holiday. 8 hours at $20.00 an hour is 8 × $30.00 = $240.00.

Do holiday hours count toward overtime?

Hours you work on a holiday are hours worked, so they count toward the 40. A paid holiday you do not work does not count. If your employer pays at least 1.5x for the holiday hours, that extra pay can be credited toward overtime owed for the week (29 CFR 778.203).

What is double time on a holiday?

Twice the hourly rate for each hour worked on the holiday: 8 hours at $15.00 is 8 × $30.00 = $240.00. Federal employees get double pay for up to 8 hours of non-overtime holiday work (5 U.S.C. 5546(b)).

Which days are federal holidays?

Eleven, set by 5 U.S.C. 6103. The business days calculator lists them for 2026 and 2027 with their observed dates. Private employers do not have to give any of them off.

Sources

Rules checked: October 27, 2026
Written by: SumTrue
Tested against: Published test cases

Not legal, tax or payroll advice. Federal rules only; your state, contract or union agreement may require more.

Holiday pay calculator