The pay that employees receive on holidays or when they are on vacation should definitely be classified with wages and benefits. It is typically seen as a benefit. Wages are typically defined as the basic salary or wage that workers receive in return for their work. Benefits can be defined as separate rewards that are given to people because of the fact that they work for the firm or other organization. Health insurance is typically seen as a benefit. So is sick leave. Paid holidays are also typically put in this category. Therefore, we should put holiday pay in the category of wages and benefits.