In the holiday pay scenario, Pradeep earns $160 per day, works five days a week, and was not on vacation during the four weeks before a public holiday. Under the Last and First Rule, what is his holiday pay amount?

In the holiday pay scenario, Pradeep earns $160 per day, works five days a week, and was not on vacation during the four weeks before a public holiday. Under the Last and First Rule, what is his holiday pay amount?

• A. $160
• B. $320
• C. $3,200
• D. $800

Answer: (A)

The Last and First Rule ties holiday pay to the earnings in the pay period that ends immediately before the public holiday. Here, the holiday sits after four weeks during which Pradeep worked every weekday and wasn’t on vacation. That means the relevant pay period covers 20 working days at $160 per day, for a total of $3,200. The average daily earnings in that period are $3,200 ÷ 20 = $160. Since the public holiday is a single day, the holiday pay equals that daily average, $160. The other amounts would come from misapplying the period or the number of days involved (for example, using the whole four weeks’ earnings, or multiplying by more than one day). The correct interpretation yields a holiday pay of $160.

The Last and First Rule ties holiday pay to the earnings in the pay period that ends immediately before the public holiday. Here, the holiday sits after four weeks during which Pradeep worked every weekday and wasn’t on vacation. That means the relevant pay period covers 20 working days at $160 per day, for a total of $3,200. The average daily earnings in that period are $3,200 ÷ 20 = $160. Since the public holiday is a single day, the holiday pay equals that daily average, $160.

The other amounts would come from misapplying the period or the number of days involved (for example, using the whole four weeks’ earnings, or multiplying by more than one day). The correct interpretation yields a holiday pay of $160.