Ever see a company promote floating holidays as a benefit—but be confused about what it means? Maybe you spotted it in a job posting or heard about it at your current workplace. We’re here to break down what floating holidays are—so you don’t have to ask HR.
In this article, we'll define floating holidays, explain how they work, and share tips on how to maximize their use.
What is a floating holiday?
The definition of a floating holiday is a paid day off that employees can use at their discretion, often to observe a holiday or personal event that isn’t part of the company’s official calendar.
Unlike standard vacation days or paid time off (PTO), floating holidays are meant for more flexibility in accommodating individual preferences or needs. These days are often provided to employees annually and may or may not roll over to the next year, depending on company policy.
A floating holiday may be used to observe a religious or cultural holiday when the company is open for business, to celebrate a personal milestone like a birthday or anniversary, to extend a vacation or holiday weekend, or for any other personal reason.
Some common floating holiday examples:
- Martin Luther King Jr Day
- The day after Thanksgiving
- Eid-al-Fitr
- Christmas Eve
- Good Friday
- Presidents’ Day
How do floating holidays work?
Floating holidays function similarly to PTO but with some key differences.
Allocation of floating holidays
Most companies allocate one or two floating holidays per year, often at the start of the calendar year or on the employee’s work anniversary. Some organizations may tie these days to specific guidelines, such as using them within the calendar year.
Rolling over floating holidays
Whether floating holidays roll over depends on company policy. Some employers require employees to use floating holidays within the same year they’re allocated, while others allow them to carry over into the next year.
Payment for floating holidays
Do you get paid for floating holidays? Yes, floating holidays are paid days off. If you leave the company without using them, some employers may pay out unused floating holidays, similar to unused PTO. However, this depends on the organization’s policy.
Floating Holiday vs. PTO: What’s the difference?
While both floating holidays and PTO offer paid time off, they serve different purposes:
- PTO is a general pool of days for vacation, sick time, or personal use.
- Floating holidays are reserved for specific occasions or events, offering additional flexibility beyond standard PTO.
Floating holidays are often seen as a way to celebrate diversity and inclusivity in the workplace, allowing employees to take time off for holidays or events that matter most to them.
Tips on how to use floating holiday effectively
To make the most of your floating holidays, consider these tips.
1. Plan ahead
Check your company’s policy to understand when floating holidays are allocated and when they expire. Use them strategically to extend long weekends or cover personal events.
2. Align with personal milestones
Use your floating holidays for birthdays, anniversaries, or other significant personal dates that might not align with company holidays.
3. Observe cultural or religious holidays
If your company’s holiday calendar doesn’t include a holiday you observe, floating holidays are a great way to take the time off you need.
4. Coordinate with your team
If possible, schedule floating holidays during less busy periods at work to minimize disruption.
Ready to make the most of your floating holidays?
Floating holidays are a valuable benefit that can enhance your work-life balance and allow you to celebrate what matters most to you. By understanding how they work and using them strategically, you can make the most of this flexible time off.
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