The holiday period comes with thrill and excitement. During this period, companies had different policies to treat their workers and define their wages. In many companies, you will get a day off and pay on official days. Sometimes, it is the same as your regular working hours pay, and sometimes more than that.
The holiday pay rate depends on the company you are working in. Once you know it then, you will be wondering how to calculate holiday pay based on hours worked. You must multiply the holiday per hour rate by the total number of working hours in your holiday.
It is no tricky math, just basic playing with numbers here and there; let’s figure it out together. Stay with me till the end of the article to get your holiday pay amount from the hourly rate.
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Understanding Holiday Pay
Before the calculations, let’s learn about what holiday pay is. It is the compensation amount the company gives to their employees, whether working or not, during public holidays. Holiday pay is at the employer’s discretion and a gesture of goodwill towards his employees.
It is also the right of employees who work full time to get at least regular pay during the holidays. Those employees who work on holidays get extra. Also, giving holiday pay builds the trust and loyalty of employees to their organization and boss.
READ THIS: How to Calculate Hours Worked and Pay?
Eligibility Criteria
Eligibility criteria depend on the company policies and level of your employment. Some companies give part-timers as well as full-timers holiday pay. The rate for holiday pay also depends on different companies. Companies usually give 1.5 or 2 times more than the regular hourly pay rate as holiday pay to those working.
It is not a hard and fast rule; the holiday hourly rate depends on the firm you work for, so you can get this information from your workplace’s HR department or the accounts department.
Calculating Holiday Pay Based on Hours Worked
Now that you know the concept of holiday pay and holiday pay rate, let’s start with the calculations.
Holiday Pay= Holiday pay Ratio x regular per hour pay rate x total number of hours worked on holiday
Example Formula
If your hourly rate is $25 and your company gives 1.5 times more than the regular rate per hour on the holidays, what will be your salary if you work for 16 hours during holidays?
Holiday Pay= 1.5x regular hourly pay x no. of hours worked on holidays
Holiday Pay 1.5x $25x 16 hours= $600
So, in this example, your holiday pay will be $600 for working 16 hours during the holiday period.
Other Factors Affecting Holiday Pay
Now, there might be other things that can change or impact your holiday pay calculations. For instance, overtime hours during holidays. As we know, overtime hours have different rates even on regular working days. So, doing overtime on holidays will also have different rates.
For example, if a normal holiday working hour pay is 1.5 more, but if you are doing overtime during holidays, the pay rate can be two times more than the normal day pay rate. Consider it while making calculations of your holiday pay.
Workers must SEE: how to calculate holiday pay for salaried employees
Steps to measure Holiday Salary with Formula
Continuing the above example, if your regular hourly rate is $25 and you have worked 16 hours during holidays and done 4 hours of overtime, what will your holiday pay be?
Total Holiday pay = Regular Holiday working hours + Overtime holiday working hours
Step 1:
Regular Holiday Pay= 1.5x regular hourly pay x no. of hours worked on holidays
Regular Holiday Pay 1.5x $25x 16 hours= $600
Step 2:
Overtime holidays Hours pay = 2x regular hourly pay x no. of hours worked on holidays
Overtime holidays hours’ pay= 2x $25×4 = $200
Step 3:
Total Holiday pay = Regular Holiday pay + Overtime holiday pay
Total Holiday pay = $600+$200= $800
FAQs
What is the time and a half of 15?
The time and a half is a term used to calculate overtime or holiday wage ratio. An employer usually gives a full and half of the actual rate to their employees working overtime or on holidays. So, if the regular per-hour pay rate is 15, one and a half (1.5) will be $15×1.5=$22.50.
How do you calculate holiday pay for zero-hour workers?
To calculate holiday pay for zero-hour workers is simple; all you need to do is take the number of hours worked and multiply it by 12.07%. Like if the hours worked per week are 70, multiply it by 12.07%.
Do I get paid for 30 minutes of work?
Yes, if you are on an hourly basis contract then you will get payment for every minute and hour. For thirty minutes, you will get half of your hourly pay rate.
Conclusion
No more confusion on “how do I calculate holiday pay based on hours worked?”; it is very simple: you must multiply the holiday bonus ratio by your regular working hour pay rate.
While making calculations, keep other things in mind, such as overtime or extra services.
So, now you know working on holidays isn’t that bad, you get to earn more than on regular days, and stay informed about your rights as an employee.
