What is a Floating holiday?

A floating holiday is a paid day off that does not fall on a fixed date .i.e., it can fall on any day that the employee sees fit, or it can be a day from a preassigned list of cultural, religious, or governmental holidays. Also called optional holidays, they are offered in addition to the regular paid time offs. 

Most organizations choose to provide floating holidays, although no laws mandate it. It is usually done to attract new talent and boost the morale of the existing employees. It is seen as an inclusive practice wherein you respect your employees’ diverse sentiments and give them the space to follow them. Employees can also choose to use this holiday to attend to their errands, spend time with their family, or chill out.

Difference between Floating holiday and PTO

Although Floating holiday bears a resemblance to Paid Time off or PTO where it is the employees’ discretion to use it, it differs in terms of availability. That said, it is entirely dependent on the organization to enable floating holidays since there are no federal laws around the implementation of floating holidays.

Five reasons why you should provide Floating Holidays

Helps you stand out

It is an excellent addition to the benefits package and can help with attracting quality talent, making you a sought-after employer

Helps achieve work-life balance

Millennial and gen-Z candidates are looking for an employer who gives them the flexibility to work at their own pace.

Fosters loyalty among employees

In fact, research by Payscale shows that 72% of workers who have the authority to make decisions at the job are happier and more loyal.


Promotes inclusion and diversity 

Employees would feel valued and happy to work in a place where their gender, faith, and their cultural choices are accepted.


Improves productivity and mental health

It lets your employees recover from burnout, come back refreshed and be at their productive best.

Manage floating holidays with Freshteam Optional Holidays!

Get a grip on floating holidays with optional leaves

Freshteam lets you handle floating holidays as optional holidays pre-assigned on certain religious/cultural holidays and allot a set number of days to each employee that can be used on these specified days

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Let your employees plan their holidays better

With holiday calendars, PTO policy, and optional holidays within their reach, your employees can plan their holidays way ahead and keep their managers in the loop beforehand to avoid last-minute deadlines and work pressure.

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Be in the know with PTO approvals

PTO meetings often seem to be confrontational. With PTO approval, every manager knows about the employees’ unavailability, helping them plan and ensure that work happens smoothly.

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Stay on top of time off trends

Identify employees who have been defaulting on time offs, check your team’s availability, see who has availed or exhausted optional leaves, and a lot more, with Freshteam’s insightful HR Analytics.

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