Vacation Pay Calculator

Calculate your minimum vacation pay and vacation time entitlement for any Canadian province, territory, or federally regulated job

Your Employment Details

Full years with your current employer. Higher rates kick in after the thresholds shown below.

Gross wages earned during the 12-month entitlement year. What counts varies by jurisdiction — see the guide.

Statutory minimum rates as of June 2026. Your employment contract or collective agreement may provide more.

Vacation pay
$2,000.00

4% of $50,000.00 in vacationable earnings — 2 weeks of vacation time

Applicable rate
4%

statutory minimum

Per pay period
$76.92

if accrued evenly over 26 bi-weekly (every 2 weeks) pays

Minimum rate by service — Ontario
From day one (you)
4% · 2 wks
After 5 years
6% · 3 wks

After 5 years your minimum rises to 6% (3 weeks) — at your current earnings that would be $3,000.00.

This shows the legislated minimum for provincially or federally regulated employees. Definitions of vacationable earnings differ by jurisdiction, and many employers pay more than the minimum. Confirm specifics with your jurisdiction's employment standards office.

Vacation Pay in Canada — How It Works

Vacation time vs. vacation pay

Canadian employment standards create two separate rights: vacation time (weeks off work you must be allowed to take) and vacation pay (a percentage of your earnings that funds that time off). The percentage and the weeks normally move together — 4% pairs with 2 weeks, 6% with 3 weeks, 8% with 4 weeks. Saskatchewan uses fractions instead: 3/52 of annual earnings for 3 weeks, and 4/52 for 4 weeks after 10 years of service.

Minimum rates by jurisdiction (as of June 2026)

JurisdictionStarting rateHigher rate
Federal (Canada Labour Code)4% (2 wks)6% at 5 yrs, 8% at 10 yrs
AB, BC, MB, ON4% (2 wks)6% (3 wks) at 5 yrs
Quebec4% (2 wks)6% (3 wks) at 3 yrs
Saskatchewan3/52 ≈ 5.77% (3 wks)4/52 ≈ 7.69% (4 wks) at 10 yrs
NB, NS, PEI4% (2 wks)6% (3 wks) at 8 yrs
Newfoundland and Labrador4% (2 wks)6% (3 wks) at 15 yrs
NWT, Nunavut4% (2 wks)6% (3 wks) at 6 yrs
Yukon4% (2 wks)No statutory increase

What counts as vacationable earnings?

Vacation pay is a percentage of your wages, but each jurisdiction defines wages differently. Regular pay, commissions, and non-discretionary (contractual) bonuses count almost everywhere. The main differences: Alberta excludes overtime and general holiday pay from the calculation, while Ontario, BC, and the federal rules generally include overtime. Truly discretionary bonuses and gifts, expense reimbursements, and tips are typically excluded everywhere. In several jurisdictions (e.g. Ontario, BC) vacation pay previously paid out is itself part of wages, so vacation pay compounds slightly year over year.

When is it paid?

The default rule in most jurisdictions is a lump sum before your vacation starts. Alternatively — with the rules varying by province and sometimes requiring your written agreement — employers may pay vacation pay on every paycheque (common for part-time and hourly staff; it must appear as a separate line on your pay statement) or at another agreed time. On termination, all accrued, unpaid vacation pay must be paid out with your final wages.

Who do these rules apply to?

Provincial/territorial rules cover most employees in that province. Federally regulated industries — banks, airlines, interprovincial transport, telecom, federal Crown corporations — follow the Canada Labour Code instead. Some occupations (e.g. certain managers, farm workers, commissioned salespeople) are partly exempt under specific provincial acts. These figures are statutory floors: a contract or collective agreement can always provide more, never less.

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Frequently asked questions

How is vacation pay calculated in Canada?

Vacation pay is a percentage of your gross vacationable earnings for the entitlement year. Most jurisdictions start at 4% (matching 2 weeks of vacation) and rise to 6% (3 weeks) after a set number of years — 5 years in Ontario, BC, Alberta, Manitoba and federally; 3 years in Quebec; 8 years in NB, NS and PEI. Saskatchewan instead uses 3/52 of annual earnings (about 5.77%), rising to 4/52 after 10 years. Federally regulated employees reach 8% after 10 years.

What earnings count toward vacation pay?

Regular wages, commissions, and contractual bonuses count in every jurisdiction. Treatment of overtime varies: Alberta excludes it, while Ontario, BC, and the federal rules generally include it. Discretionary bonuses, tips, and expense reimbursements are typically excluded. Check your jurisdiction’s employment standards definition of "wages".

Is vacation pay the same as vacation time?

No. Vacation time is the weeks off work you are entitled to take; vacation pay is the money (a percentage of earnings) that funds it. They usually scale together — 4% with 2 weeks, 6% with 3 weeks — but they are separate legal entitlements, and employers must generally provide both.

When does my employer have to pay vacation pay?

The default in most provinces is a lump sum before your vacation begins. Many employers instead pay it on each paycheque (rules on when this is allowed vary by jurisdiction, and it must be shown separately on your pay statement). Any accrued, unpaid vacation pay must be paid out when employment ends.

Do these rates apply to my job?

Provincial rules cover most employees working in that province. Federally regulated industries — banks, airlines, telecom, interprovincial transport — follow the Canada Labour Code instead. These are statutory minimums: your contract or collective agreement can provide more, never less.

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