What's the difference between vacation time and floating holidays?

Question

Zippia Team · Accepted Answer

While vacation time and floating holidays are often very similar, there are a couple of key differences. Companies will usually offer vacation time earned on a reward system for the length of time employed or milestones reached. Floating holidays are given as a set number for a given amount of time to employers when they're first hired (or when you begin offering it).

Floating holidays are not earned, cannot be increased, and will reset according to a predetermined schedule.

For example, an organization offering vacation time might include a stipulation that employees receive two weeks of paid vacation after their first six months.

However, if a company is offering two floating holidays per year, that's all she wrote. At the beginning of the next year, you have two floating holidays again, even if you used none the year prior.