Bank, public, and national holidays sound similar, but they aren’t identical—and they don’t always guarantee a paid day off. Here’s a clear, country‑by‑country look at what each term means, who’s legally covered, which sectors close, and how to read those 'observed' labels on your calendar so you can plan work, payroll, and travel with confidence.

Quick definitions at a glance

Bank holiday: A day when banks (and often financial markets and some public services) are officially closed; widely used in the UK, Ireland, and some Commonwealth countries.

Public holiday: A government‑declared non‑working day for the general public. Legal rules vary by country and region; closures extend beyond banks to many sectors.

National holiday: A public holiday tied to a country’s identity or history (for example, Independence Day). In some countries, only a few dates are truly 'national' while many others are regional or sector‑specific.

Why the terminology varies—and why it matters

Terms are rooted in legal and cultural histories. In the UK, bank holidays originated from banking legislation but now function much like public holidays. In the United States, 'federal holidays' apply to federal employees and agencies; private employers may follow them—but don’t have to. In India, only three holidays are truly 'national,' while a long list of gazetted (compulsory for government offices) and restricted (optional) holidays vary across states and by employer. Understanding these distinctions helps you predict closures, paid leave rights, and service availability.

Country snapshots: what closes and who gets paid

United States: Federal holidays and private choice

The U.S. recognizes federal holidays (such as New Year’s Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Veterans Day, Thanksgiving, Christmas). Federal offices, courts, and the postal service close, and the NYSE and Nasdaq observe a similar schedule with some early‑close days.

  • Who’s covered by law: Federal employees. States and counties often align, but private employers choose their policies.
  • Paid time off: Not mandated by federal law for private sector workers. Most medium/large employers provide paid holidays; retail and hospitality commonly remain open.
  • Typical closures: Government offices, courts, USPS, many banks and credit unions, some schools; major retailers may reduce hours on certain holidays but often stay open.
  • Note: If a federal holiday falls on a weekend, it is generally 'observed' on Friday or Monday for federal offices.

United Kingdom & Ireland: Bank holidays with broad impact

Bank holidays are designated days when banks, government services, and many businesses close. England and Wales usually have about eight bank holidays; Scotland and Northern Ireland have additional ones. Ireland has public holidays akin to bank holidays.

  • Who’s covered: There’s no blanket legal right to time off on every bank holiday, but most full‑time employees receive public/bank holidays as part of their paid leave package, and many workplaces close.
  • Typical closures: Banks, many offices, government services, schools, and some shops (though retail often opens with reduced hours).
  • Observed/substitute days: If a bank holiday falls on a weekend, a substitute weekday is provided.

Canada: Federal vs provincial statutory holidays

Canada has federal statutory holidays for federally regulated sectors (e.g., banks, airlines, telecom), while provinces and territories set their own public holidays for most other workers. The result: a mosaic of days off across the country.

  • Who’s covered: Federally regulated employees observe federal stat holidays; others follow provincial/territorial employment standards.
  • Typical closures: Government offices, many banks, schools, and services; retail varies by province and holiday.
  • Pay rules: Stat holiday pay and premium pay differ by province; check local employment standards (e.g., Ontario, British Columbia, Quebec).

Australia & New Zealand: Public holidays with 'Mondayisation'

Public holidays exist nationally and at the state/territory level in Australia, and nationally and regionally in New Zealand. Workers are generally entitled to be absent on a public holiday; many awards/agreements provide penalty rates for working.

  • Who’s covered: Most employees under the National Employment Standards (Australia) or the Holidays Act (New Zealand).
  • Typical closures: Government services, banks, many offices and schools; hospitality and retail often open with penalty rates.
  • Observed/substitute days: NZ 'Mondayises' certain holidays that fall on weekends; Australian states provide substitute days.

India: National, gazetted, and restricted holidays

India recognizes three national holidays (Republic Day, Independence Day, Gandhi Jayanti). Beyond these, gazetted holidays are mandated for government offices, and restricted holidays allow employees to choose a limited number. Banks follow Reserve Bank of India state‑wise holiday lists.

  • Who’s covered: Government employees are covered by gazetted lists; private employers set their own, often mirroring major festivals in their state.
  • Typical closures: Government offices, many banks (and always on 2nd and 4th Saturdays and all Sundays), schools; retail often remains open, especially during festivals.

Europe (non‑UK): Public holidays set by each country

There is no EU‑wide holiday calendar; member states set their own. Many observe New Year’s Day, Easter Monday, Labour Day (1 May), Christmas, and a mix of national or religious days.

  • Who’s covered: Typically, public holidays are statutory for employees, with pay rules defined by national law.
  • Typical closures: Government offices, banks, schools, many businesses, with retail hours varying by country and holiday.

Who actually gets the day off? Sector‑by‑sector reality

  • Government and public sector: Usually closed on public/national holidays; employees often receive paid leave.
  • Banks and financial markets: Close on official bank/public holidays; stock exchanges publish their own calendars (e.g., NYSE, LSE, ASX).
  • Postal and logistics: USPS, Royal Mail, Canada Post, Australia Post, and national couriers typically suspend or reduce service on official holidays.
  • Schools and universities: Typically closed on public holidays; additional closures may occur for local or religious observances.
  • Retail and hospitality: Often open (sometimes with reduced hours). In some places (e.g., certain Canadian provinces or German states), holiday trading restrictions apply.
  • Manufacturing and offices: Many close for widely observed holidays; union agreements and company policies determine paid status and premiums.
  • Essential services: Healthcare, emergency services, public transport, and utilities operate with holiday rosters; pay premiums often apply.

How holidays appear on calendars (and what 'observed' really means)

Calendars often label holidays in several ways:

  • Fixed date: Happens on the same date every year (e.g., 1 January).
  • Floating date: Moves according to a rule (e.g., 'third Monday in January').
  • Moveable feasts: Tied to lunar or religious calendars (e.g., Easter, Eid), which vary each year and by sighting/location.
  • Observed/substitute: If a holiday falls on a weekend, many jurisdictions shift the day off to Friday or Monday. Look for 'observed', 'substitute day', or 'in lieu'.
  • Regional/optional: Some holidays are limited to a state, province, or city; others are optional (employees may choose a certain number).

Why it matters: payroll, scheduling, and travel plans hinge on these labels. In the U.S., the date the holiday is 'observed' determines federal office closures; in the UK and New Zealand, substitute days ensure a weekday off. Your company’s holiday policy might follow the statutory rule, a collective agreement, or a global calendar—so check the policy, not just your phone’s default calendar.

Planning work and travel around holidays

For managers and teams

  • Confirm jurisdiction: Identify whether employees fall under federal, state/province, or regional rules.
  • Publish a clear policy: List which holidays are paid, which are unpaid, and rules for premium pay if worked.
  • Watch the 'observed' date: Adjust payroll deadlines, direct deposits, and bank cut‑offs if a holiday shifts to Friday/Monday.
  • Coordinate with clients: Share holiday operating hours and response times, especially across time zones.
  • Plan coverage: Use on‑call rotations and incentives for essential operations on public holidays.

For travelers

  • Expect crowds and higher prices around national holidays and festival weeks (e.g., Golden Week in parts of Asia, Easter and Christmas in Europe, Thanksgiving in the U.S.).
  • Check transport schedules: Trains, buses, and ferries may run reduced or special timetables; some routes sell out early.
  • Book government services in advance: Visas, ID offices, DMV equivalents, and post offices may be closed for multiple days.
  • Banking and cash: ATMs usually operate, but branch services won’t; plan cash needs in regions where cards are less accepted.
  • Local festivals: Parades and ceremonies can create road closures—and unforgettable experiences if you plan for them.

Common misconceptions cleared up

  • 'Federal holiday' means everyone is off: Not in the U.S.; it applies to federal employees. Private employers often follow, but it’s not mandated.
  • Bank holiday equals paid day off: In the UK/Ireland, many employers provide it, but it depends on your contract. Some businesses remain open.
  • National holiday = total shutdown: Essential services still run, and retail may operate with restrictions depending on local laws.
  • Religious holidays are uniform: Dates and observance can vary by country and community; some are optional rather than statutory.
  • All calendars are accurate for your location: Preloaded calendars can omit regional days or show holidays you don’t observe. Always cross‑check official sources.

Examples: what typically closes on a few well‑known holidays

Christmas Day (many countries)

  • Government offices, courts, postal services: closed.
  • Banks and financial markets: closed in most jurisdictions.
  • Retail and hospitality: many shops closed or limited hours; restaurants vary by local custom.

Good Friday (common across Europe, Canada, Australia; not a U.S. federal holiday)

  • Government offices: closed in countries where it’s a public holiday.
  • Banks and markets: closed in many countries; in the U.S., markets often close or run short sessions, while federal offices remain open.
  • Retail: trading restrictions in some jurisdictions.

Independence/National Day (e.g., 4 July in the U.S.)

  • Government, courts, postal services: closed.
  • Banks and markets: closed; some markets have early closes on adjacent days.
  • Retail and attractions: many remain open with special events and crowds.

How to verify holidays for your location

  • Official government websites: Labor ministries, civil service, or cabinet office pages list public holidays.
  • Central bank and stock exchange calendars: For banking days and market closures.
  • Postal service notices: USPS, Royal Mail, Canada Post, Australia Post publish closure schedules.
  • Employment standards pages: Provincial/state labor departments explain paid holiday rules and entitlements.
  • Company policy: Ultimately determines your paid/unpaid status and any substitute days.

Bottom line

'Bank', 'public', and 'national' holidays overlap but aren’t identical. Government and banking sectors usually close; many private employers follow suit, but rules for paid leave and premium pay vary widely by country, region, and contract. Always check the 'observed' date, confirm local regulations, and plan ahead—your schedule, payroll, and travel plans will run smoother.

FAQ

Are bank holidays the same as public holidays?

Not always. In the UK and Ireland, bank holidays function much like public holidays, but the term originally referred to days banks closed. Elsewhere, 'public holiday' is the broader legal term, and 'bank holiday' may be uncommon or sector‑specific.

Do private companies have to close on national or public holidays?

It depends on local law. In the U.S., private employers aren’t federally required to close or pay for holidays, though most offer paid holidays. In many other countries, public holidays are statutory and either mandate closure or require premium pay if employees work.

What does 'observed' mean on a calendar?

It indicates the weekday when the holiday is officially taken if it falls on a weekend. Government offices and banks typically close on the observed day, which can affect payroll, deliveries, and market settlements.

How can I tell if a holiday is regional or national?

Check a government holiday list and confirm the scope. In places like Canada, India, and Australia, many holidays are set by provinces or states. Your employer policy should also indicate which regional holidays it observes.

Do I get extra pay if I work on a public holiday?

Local law and your contract determine this. Many countries require premium rates or a substitute day off; in the U.S., premium pay on holidays is generally a company policy unless mandated by state law or a union agreement.

Why are markets and banks sometimes closed when shops are open?

Financial institutions follow banking/market calendars tied to settlement systems and regulation. Retail decisions often balance legal constraints with consumer demand, leading to reduced hours rather than full closure.

Which calendar should I trust for travel planning?

Use official government and transport calendars for closures and schedules, and confirm hotel/attraction hours directly. Preloaded phone calendars are helpful but may miss regional days or show holidays you don’t observe.