What is a floating holiday?A paid day off each person picks for themselves.
A floating holiday is a paid holiday that isn't tied to a date. Instead of everyone getting the same day off, each person picks a day that matters to them: Lunar New Year, Diwali, Eid, Good Friday, Yom Kippur, their birthday, or just a day they need. Most US companies that offer them give one to three a year.
For a manager, floating holidays are great for a diverse team and slightly tricky to plan around, because everyone's days are different. Here's what they are, how they compare with PTO, and how to keep track of them.
Floating holiday meaning, in one line
A floating holiday is a paid day off that the employee chooses, on top of the company's fixed holidays, often used for religious or cultural days the company calendar doesn't include.
Floating holiday vs PTO
Both are paid days off. The difference is in the rules. PTO usually accrues over the year, can be used for anything, and often carries over or is paid out when someone leaves. A floating holiday is usually granted all at once, is meant for a holiday the company doesn't observe, has to be used within the year, and often doesn't carry over or get paid out.
Some companies blur the line and simply add floating days to the PTO bank. If you do keep them separate, say what happens to unused ones on December 31, and check your state's rules. In California, for example, a floating holiday that people can take whenever they like is generally treated like vacation, which can mean it has to be paid out when someone leaves.
How people use floating holidays
Religious and cultural days are the main reason they exist. In 2027, for example, Lunar New Year is Saturday February 6, Holi is around Monday March 22, Eid al-Fitr is expected around March 10, Good Friday is March 26 and Passover begins on the evening of April 21. Many of these move every year, so people pick them as the dates are known.
Other common uses: a birthday, the day after Thanksgiving if the company doesn't give it, a child's first day of school, or a mental health day.
Rules most floating holiday policies have
How many: usually one to three per calendar year. Notice: the same as PTO, often two weeks. Use it or lose it: most expire on December 31, so remind people in the fall. New hires: some policies prorate, some give the full amount, say which. Approval: treat it like a PTO request, with the same rules about coverage.
Planning a team around everyone's own days
The planning problem is that floating holidays are invisible until someone asks. Ask people to put their floating holidays on the team calendar as soon as they pick them, especially the ones near release dates. A release on Holi or Lunar New Year can quietly lose a key person.
If your team is spread across countries, remember that many of these days are already public holidays somewhere. Lunar New Year is a public holiday in China, Singapore and Vietnam. Diwali is one in India. A floating holiday matters most for people living where it isn't.
Make floating holidays easy
Remind people in the fall
Unused floating days often expire on December 31. A reminder in October saves the lost day.
Put them on the calendar
Floating holidays should show up next to vacations, not in a separate HR system nobody checks.
Don't make people explain
Nobody should have to justify which holiday matters to them.
Check release dates
Look for floating holidays near launches before you lock the date.
Be clear about payout
Write down what happens to unused days when someone leaves, and check your state's rules.
Prorate fairly
Decide how new hires get them, and apply it the same way to everyone.
Floating holidays are personal,so they're easy to miss.
Everyone picks different days, which is the point, and also why they surprise managers. Here are a team's floating holidays on a Forgot board, next to a launch date. It's live, so try moving one.
Everyone's days in view
Each person's floating holidays sit on their own row, next to their vacations.
Launch dates warn you
A milestone warns you when someone is out on it, including for a floating holiday.
Public holidays by country
Teammates abroad get their own country's holidays automatically.
- Each person's own floating holiday is on their row
- A release date warns if someone is out that day
- Public holidays come from where each person lives
- Drag a floating holiday to another day
Keep floating holidays on the calendar your team checks.
Forgot shows each person's floating holidays, vacations and public holidays on one timeline, and warns you when someone is out on a release date.
- Custom types like Floating holiday
- A warning when someone's out on a key date
- Public holidays for each person's country
- Your team sends dates without signing up
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Questions
What is a floating holiday?
A paid day off that the employee chooses, on top of the company's fixed holidays. People often use it for religious or cultural holidays the company doesn't observe, or for a birthday.
What's the difference between a floating holiday and PTO?
PTO usually accrues, can be used for anything and often carries over. A floating holiday is usually granted all at once, meant for a holiday, and expires at the end of the year. Some companies simply add floating days to PTO.
Do floating holidays roll over?
Usually not: most policies say they expire on December 31. Check the policy, and your state's rules if you're the one writing it.
Are floating holidays paid out when you leave?
It depends on the policy and the state. Many policies don't pay them out, but in some states, like California, a floating holiday that can be taken at any time is treated like vacation and may have to be paid out.
How many floating holidays do companies give?
Most US companies that offer them give one to three a year.