Floating Holiday

What is a Floating Holiday?  

A floating holiday is a paid day off from work, given as a substitute for a public holiday and typically taken on a day was chosen by the employee. It is called a floating holiday because every year it “floats” or moves to the date when the employee takes it. A floating holiday is given in addition to the typical paid holidays that most employers provide as a benefit.  

Benefits of offering a floating holiday  

A floating holiday benefit can give employees flexibility, improve team morale and support diversity and inclusion at your company.  

  • A floating holiday benefit provides flexibility to your employees. It can improve employees’ work/life balance, which has been proven to increase productivity and reduce burnout.  
  • By offering floating holidays, you embrace other cultures and religions. A flexible floating holiday enables people from different cultures or backgrounds to feel valued as part of your team. It allows employees to observe religious or cultural holidays that are not on the company’s calendar.   
  • Allows employees to preserve more PTO for vacation, sick days or other personal needs. Employees sometimes have personal needs or family matters that require them to take a day off. Instead of using their vacation time, they can use a floating day when necessary.   


What Should a Company’s Floating Holiday Policy Include?  

To encourage employees to take advantage of their floating holiday and prevent misunderstandings and abuse, every organization that offers a floating holiday should establish a policy about its use. This policy should be available in the employee handbook. It should include:  

  • Whether the floating holiday is available at the beginning of the year or is earned during the year  
  • Whether it is available to both full-time and part-time employees  
  • How far in advance a floating holiday must be scheduled and approved by the employee’s supervisor  
  • How long new employees who are hired during the year must wait to qualify for the floating holiday  
  • Any other restrictions on how or when a floating holiday may be used.
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Vedangi Pathak
Vedangi is currently pursuing her B.E in Mechanical Engineering. She's a woman in STEM with a keen interest in Marketing and mutual love for reading. Skilled in Public Speaking, Writing, Content Creation and Organization, she has won multiple awards and prizes for the same.