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HR glossary

What is a Public Holiday? Meaning and Example

A public holiday is a day when the general public gets a holiday, declared by the government or observed by custom, and on which most workplaces close. In a company's holiday calendar, it means a paid holiday for all employees, as opposed to an optional holiday that only some employees take.

How public holidays reach a company calendar

Each year HR draws up a holiday calendar from the national holidays, the state government's list, local festivals and business needs. A company with branches in Kolkata, Mumbai and Chennai will have different public holidays per branch: Durga Puja in Kolkata, Ganesh Chaturthi in Mumbai and Pongal in Chennai. The calendar should be published before the year starts, or in its first week, so employees can plan leave around it.

Public holiday versus gazetted and restricted holiday

The terms overlap, which confuses employees. Gazetted refers to the government notification and matters mainly for government offices. Public holiday is the everyday term and, inside a company, means everyone is off. Restricted or optional means only those who pick the day are off. A festival can be a public holiday at one branch and only an optional holiday at another, depending on local practice.

Pay and work on public holidays

For monthly-salaried staff, public holidays are paid days within the salary. When an employee works on a public holiday, most companies give extra pay or a comp off, depending on the employee's category and the rules that apply. If a public holiday falls on a weekly off, the policy should say whether a substitute day is given. In ZeniaHR, each holiday can apply to chosen branches and departments, and holidays feed attendance, leave sandwich rules and payroll.

Example: Swift Couriers has offices in Kolkata and Ahmedabad. For 2026, HR set Durga Puja as a public holiday for Kolkata only and Uttarayan on 14 January for Ahmedabad only, while Republic Day and Diwali applied to both. On Wednesday, 14 January, the Ahmedabad team was off while Kolkata worked normally, and nobody's leave balance was touched.

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Frequently asked questions

How many public holidays are there in a year in India?

There is no single national number. The three national holidays are the same everywhere, but festival and regional holidays vary by state and by employer. Each company's holiday calendar adds festival holidays to the national ones, based on the state's rules and its own policy. Check your company's calendar for the exact list at your location.

Do employees get extra pay for working on a public holiday?

The day itself is paid, and most companies add extra pay or a compensatory day off for working on it. The exact treatment depends on the state's holiday rules, any standing orders or settlements that apply, and company policy. Agree the compensation before rostering the employee, and record it so payroll pays it correctly.

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