What is Holiday Pay?

Holiday pay refers to any form of alternative compensation that an employer offers to employees during holidays, such as on Eid, Christmas, Easter, Labor Day, or any other National Day.

This compensation may take the form of fully or partially paid time off, allowing employees to observe special days or take a break from work. It is a voluntary benefit provided by employers to support their employees' work-life balance and well-being during holidays.

The Difference Between Holiday Pay And Paid Holidays:

Holiday pay and paid holidays are related but distinct concepts in employment compensation. Holiday pay is compensation provided to employees for work performed on federally recognized holidays, such as Thanksgiving or Christmas. Paid holidays refer to specific days on which employees are entitled to take a day off with full or partial pay.

Holiday pay is compensation for work done on specific holidays, whereas paid holidays involve giving employees time off with pay on specific days. Holiday pay is typically associated with federally recognized holidays, while paid holidays can include both recognized holidays and additional days off granted by the employer.

Paid Holidays In The UAE And Saudi Arabia:

Paid holidays are national, state, or religious holidays that employers can choose to give as paid days off to their employees. In the UAE they include Eid Al Fitr, Islamic New Year, Eid Al Adha, whereas in Saudi Arabia, Muslim employees are entitled to take Hajj & Umrah leaves, including Eid Al Fitr and Eid Al Adha.

However, holiday pay is also governed by labor laws specific to each country. Employers are generally required to provide paid leave on designated public holidays. The exact holidays and payment rates may vary based on the jurisdiction.

How Is Holiday Pay Calculated?

The calculation of holiday pay can vary depending on factors like employment contracts, company policies, and local labor laws. It may be based on the employee's regular rate of pay or a specific formula outlined in employment agreements.

Is Holiday Pay Mandatory?

The provision of holiday pay is typically subject to labor laws and company policies. In many jurisdictions, certain holidays may be designated as paid time off.

In summary, holiday pay is an important aspect of employee compensation, ensuring that individuals are fairly compensated for designated days off. Understanding the regulations and policies surrounding holiday pay is essential for both employers and employees to ensure compliance and fair treatment.

Hire the best talent across MENA.
From a pool of 350,000+ top candidate