A statutory holiday is a day recognized by law where employees are entitled to take a day off with pay. These holidays are established by government legislation and vary by country or region. Common examples include New Year's Day, Independence Day, and Christmas. On statutory holidays, businesses may close, and employees typically receive their regular pay even if they do not work. If employees are required to work on these days, they may receive additional compensation, such as overtime pay. Statutory holidays aim to provide workers with time for rest, celebration, or cultural observance.