Cayman Island Public Holiday Regulations
In Cayman Island, public holidays are generally treated as paid days off for employees, with no regional variations and substitute days observed when a holiday falls on a weekend. There are 12 official public holidays in 2026 that employers should plan for in their staffing and payroll.
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List of Public Holidays in Cayman Island (2026)
Cayman Island has a set calendar of national public holidays that apply across all three islands, with substitute days when certain holidays fall on a weekend. Use the table below to plan staffing, leave approvals, and payroll for 2026.
Do Employers Have to Provide Paid Leave on Public Holidays?
Yes, Cayman Islands employment law generally requires that public holidays are treated as paid days off for employees who would normally be scheduled to work on those days. Where a public holiday falls on a weekend, the government typically declares a substitute weekday as the observed public holiday, and employees are entitled to the paid day off on that observed day.
Full‑time employees who work regular hours are usually entitled to their normal day’s pay for a public holiday on which they are not required to work. Part‑time employees are typically entitled to public holiday pay on a pro‑rated basis if the holiday falls on a day they would ordinarily work. If an employee is required to work on a public holiday, they are usually entitled to premium pay or an alternative day off with pay, in line with their contract and applicable legislation.
Because individual contracts, collective agreements, and internal policies can offer more generous terms, you should review your employment agreements and seek local legal advice to confirm the exact entitlements for your workforce.
Legal Penalties for Not Providing Paid Holiday Leave
Failing to provide the correct public holiday pay or time off can expose your company to complaints, inspections, and financial penalties. The Cayman Islands Department of Labour and Pensions is the primary authority that investigates alleged breaches of employment standards, including public holiday entitlements.
If an employer underpays or withholds public holiday pay, they can be ordered to make back payments to affected employees and may face fines or other sanctions under local labour legislation. Persistent or deliberate non‑compliance can increase the risk of enforcement action and reputational damage, especially for global employers with a visible presence in the islands.
Common mistakes include treating public holidays as unpaid leave, failing to provide substitute days when holidays fall on weekends, miscalculating pay for part‑time or shift workers, and not applying premium rates or time‑off‑in‑lieu when employees work on a public holiday. To reduce risk, keep clear records of schedules, hours worked, and holiday pay calculations, and ensure your local managers understand the rules.
How Do Holidays Affect Overtime Thresholds?
Public holidays can affect overtime in two main ways in the Cayman Islands: how you count hours toward overtime thresholds and how you compensate hours actually worked on the holiday. In many cases, hours that an employee would have worked but did not work because of a paid public holiday still count as paid hours for the week, which can push total paid hours closer to overtime thresholds.
When employees work on a public holiday, they are often entitled to a premium rate of pay or a paid day off in lieu, depending on their contract and any applicable labour rules. Some employers choose to pay at least 1.5 times the normal hourly rate for work on a public holiday, or provide a full substitute day off with pay, to stay aligned with common practice and to remain competitive in the local labour market.
Because overtime and holiday‑work rules can be technical and may change, you should confirm the current statutory requirements with a Cayman Islands employment law specialist and reflect them clearly in your employment contracts and payroll systems.
Stay 100% Compliant with Leave Regulations Using Playroll
Managing Cayman Islands public holidays across a distributed team can get complicated quickly, especially when you are juggling different time zones, contracts, and local rules. Playroll helps you simplify this by building Cayman‑specific public holiday calendars and leave rules directly into your workflows.
When you hire through Playroll, our platform and in‑country experts help you:
1. Apply the correct Cayman Islands public holiday calendar for each employee’s location.
2. Configure paid holiday entitlements for full‑time, part‑time, and shift workers in line with local law.
3. Automate premium pay or time‑off‑in‑lieu when employees work on a public holiday.
4. Keep clean, audit‑ready records of holiday pay, overtime, and leave balances.
5. Stay ahead of legislative updates so your policies remain compliant over time.
Instead of manually tracking Cayman Islands public holidays and worrying about missed entitlements, you can rely on Playroll to keep your policies aligned with local requirements while giving your team a clear, consistent experience. That means fewer compliance headaches for you and a smoother, more transparent leave experience for your employees.

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