Floating Holiday Or PTO: How To Maximize Your Your Time Off

Employers sometimes modify their benefits package to make working with their company more attractive. As you navigate taking time away from work, learn more about whether taking a floating holiday vs. PTO is in your best interest and how to maximize your PTO.

As employees stave off burnout, taking time away from work to rest and enjoy your life has many health benefits. According to an Ernst and Young study, “for every additional 10 hours of vacation time that employees took, their year-end performance improved 8%.”

And if you think taking a vacation means you won’t get a raise or a promotion, the data tells a different story. According to Project: Time Off, “people who take all of their vacation time have a 6.5% higher chance of getting a promotion or a raise than people who leave 11 or more days of paid time off on the table.”

If your company offers a floating holiday, it can be paid or unpaid. Make sure to tap in with your human resources department to clarify, because taking it could impact your financial goals. A floating holiday is a flexible day you can take to observe a cultural event or religious holiday. Your company may designate the use of floating holidays differently, so keep that when you verify how you can use it.

PTO, or paid time off, is typically used for vacation, sick leave, or personal days.

The availability of and ability to use floating holidays and PTO is dictated by company policy. You can verify the details of your benefits package with your human resources representative. They’ll also be able to tell you how much time you have available to use and when your time resets.

Get your calendar out and take note of all of the federal holidays throughout the year. Cross-check to make sure your company observes these holidays, then using federal holidays, extend your time off.

You can submit PTO requests on the days directly before and after holidays throughout the year to give yourself more time away from work.

Typically annual federal holidays are Martin Luther King Day, President’s Day, Memorial Day, Juneteenth, Fourth of July, Labor Day, Indigenous Peoples’ Day, Veterans Day, Thanksgiving, and Christmas.

Knowing the difference between a floating holiday vs. PTO and how to maximize your PTO will go a long way toward you taking a peaceful break from work. Whether you relax at home, plan a staycation, or travel locally or abroad, you’ll get the most out of your time off and stay on track financially.