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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Paid Holiday

Paid holidays are days off for employees while receiving regular pay. Pay holidays may be observed on various occasions and are predetermined and transmitted to the employees; these holidays serve various reasons based on cultural or religious traditions.

What is a paid holiday?

A paid holiday, also known as a paid time off (PTO) or paid leave, is a day or period of time during which an employee is given time off from work while still receiving their regular wages or salary. Paid holidays are typically granted by employers to their employees for various reasons, such as national or religious holidays, company-specific holidays, or as part of an employee benefits package.

Listen, recognize, award, and retain your employees with our Employee engagement software  

How do paid holidays work?

Paid holidays work as follows:

  1. Pre-determine holidays
  2. Eligibility
  3. Regular pay
  4. Notification and scheduling
  5. Legal and contractual obligations

1. Pre-determine holidays: Employers establish a list of paid holidays that employees are entitled to. These holidays are bifurcated based on industry standards, company policies, and laws.

2. Eligibility: Paid holidays are available to all eligible employees based on the criteria like length of employment, working full-time or part-time, and also  depending on the performance standards.

3. Regular pay: Employees receive regular payment on paid holidays even though they aren’t working as the day is compensated as of the regular day only. This ensures employees do not experience financial hardship due to holidays.

4. Notification and scheduling: Employees should be communicated with the list of paid holidays and any specific policy or procedure regarding scheduling, as it helps employees if they require any time off in advance during that period.

5. Legal and contractual obligations: Employees must comply with laws and regulations regarding paid holidays, as these laws vary from state or region. Employers          should review employment contracts or collective bargaining agreements to ensure compliance with provisions related to paid holidays.

Can holiday pay be included in the hourly rate?

Yes, holiday play can be included in the hourly rate of employees. Some employers have holiday pay as a part of regular pay to simplify the calculations for payroll and ensure employees receive constant condensation throughout the year.

Which paid holidays are considered mandatory?

The paid holidays are considered mandatory depending on the region, country, or state, and labor laws and regulations. For example, New Year’s Day is viewed as a holiday in the United States.

What are the most common paid holidays?

In America, workers get an average of eight paid holidays per year. Paid holidays are based on all sectors, including civilians, government, and the general public. Some of the holidays are:

Independence day

Labor Day

Christmas Day

Thanksgiving Day

Memorial Day

What are the benefits of paid holidays?

Various benefits of paid holidays are as follows:

  1. Work-life balance
  2. Stress reduction
  3. Employee morale and engagement
  4. Positive employer branding
  5. Cultural and religious observances
  6. Increase productivity

1. Work-life balance: Paid holidays provide employees with time off from work that helps them to rest, recharge and rejuvenate with friends and family. This balance between work and personal time contributes to overall well-being.

2. Stress reduction: Taking regular breaks helps to reduce burden and stress and prevent burnout. Taking time off to relax, engage in hobbies, and pursue personal interests can help individuals to stay mentally and physically fit.

3. Employee morale and engagement: Offering paid holidays demonstrates that employers value and prioritize the well-being of employees. This also helps employees to feel supported and appreciated.

4. Positive employer branding: Offering employees paid holidays can help employers to build a positive brand and reputation that they prioritize the well-being of the people working, which helps to attract more talented employees.

5. Cultural and religious observances: Paid holidays allow employees to celebrate their cultural festivals or national holidays freely; this helps to promote individual diversity within the workforce and supports employees in practicing their traditional beliefs.

6. Increase productivity: Taking regular breaks and time off allows employees to rejuvenate and be more productive towards their work and be focused, energized, and efficient.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Does the law require paid holidays?

The paid holidays are based on the country and the jurisdiction. It is observed that in most count

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