Canada Vacation Pay Calculator
Estimate minimum vacation pay from your vacationable earnings, province and years of service. The calculator covers all 10 Canadian provinces plus federally regulated employment.
Calculate your vacation pay estimate
Enter the earnings base that counts as vacationable wages in your jurisdiction.
General information only. This tool multiplies the earnings figure you enter by the applicable percentage-based statutory rate. Definitions of vacationable wages and special pay methods vary by jurisdiction. Not legal, tax or payroll advice.
Quick answer: Vacation pay in Canada is commonly 4% of eligible earnings, rising to 6% after a service threshold. Important exceptions include Saskatchewan, which uses 5.77% for the first nine years and 7.69% after 10 years, and federally regulated employment, which adds an 8% tier after 10 years.
Vacation pay rates by province in Canada
Vacation pay is not one identical national percentage. Provincial employment standards set the minimum for provincially regulated employees, while the Canada Labour Code applies to federally regulated workplaces.
| Jurisdiction | Initial rate | Higher rate | Long-service rate |
|---|---|---|---|
| Ontario | 4% | 6% at 5+ years | — |
| British Columbia | 4% | 6% after 5 consecutive years | — |
| Alberta | 4% for percentage-based method | 6% at 5+ years | — |
| Quebec Earlier tier | 4% | 6% at 3+ years | — |
| Saskatchewan Different rates | 5.77% | — | 7.69% after 10 years |
| Manitoba | 4% | 6% after 5 years | — |
| New Brunswick | 4% | 6% at 8+ years | — |
| Nova Scotia | 4% | 6% at start of 8th year | — |
| Prince Edward Island | 4% through 5 years | 6% after more than 5 years | — |
| Newfoundland & Labrador | 4% | 6% at 15+ years | — |
| Federal 3 tiers | 4% | 6% at 5+ years | 8% at 10+ years |
How the Canada vacation pay calculator works
The percentage-based calculation is straightforward:
The difficult part is not the multiplication. It is choosing the correct employment jurisdiction, service tier and earnings base. The calculator handles the rate tier; you should enter the earnings amount that qualifies under the rules that apply to your employment.
Why years of service matter
Long-service employees often move into a higher statutory tier. Ontario, BC, Alberta and Manitoba use a 5-year milestone; Quebec reaches 6% much earlier; New Brunswick and Nova Scotia use later thresholds; Newfoundland & Labrador’s higher tier is much later; Saskatchewan and federal employment can reach a third long-service level.
Vacation pay is different from vacation time
Vacation pay is the money owed. Vacation time is the time away from work. If you need the week-based result, use the Canada Vacation Entitlement Calculator.
What counts as vacationable earnings?
This varies more than the headline percentages do. Do not assume every item on a pay statement belongs in the same earnings base.
- Ontario: vacation pay is generally calculated from statutory “wages,” excluding vacation pay itself.
- British Columbia: the Act uses total wages for the vacation-pay calculation.
- Quebec: the vacation indemnity is based on gross wages earned during the reference year.
- Saskatchewan: wages can include salary, commission, earned bonuses, overtime, public holiday pay and vacation pay.
- Alberta: the statutory definition specifically excludes several items such as overtime pay and general holiday pay for this calculation.
Vacation pay calculation examples
4% applies: $52,000 × 0.04 = $2,080.
6% applies: $52,000 × 0.06 = $3,120.
5.77% applies: $38,000 × 0.0577 = $2,192.60.
7.69% applies: $60,000 × 0.0769 = $4,614.
8% applies: $75,000 × 0.08 = $6,000.
The employee has not reached 15 years, so 4% gives $2,000.
Special cases that can change the result
Employment ends during the year
Vacation pay on termination is generally based on earned, unpaid entitlement up to the end of employment. Enter the actual vacationable earnings for the relevant period rather than a full-year salary that was never earned.
Vacation pay on every paycheque
Some jurisdictions permit vacation pay to be paid with regular payroll when statutory conditions are met. That changes the timing of payment, not necessarily the total percentage-based entitlement.
Federally regulated employment
A workplace being large or operating across Canada does not automatically make every employee federally regulated. Federal labour standards apply to specific federally regulated industries and workplaces.
Employer provides a better benefit
The calculator shows statutory minimums. A stronger contractual or collective-agreement entitlement may produce a higher amount.
Common vacation pay calculation mistakes
- ✕Using 4% for everyone. Long-service thresholds can increase the minimum rate substantially.
- ✕Leaving Saskatchewan at 5.77% forever. After 10 years with the same employer, the statutory rate becomes 7.69%.
- ✕Applying Ontario’s 5-year threshold to Quebec. Quebec reaches the 6% tier at 3 years.
- ✕Using a gross salary figure that does not match the statutory earnings base. Inclusion and exclusion rules differ by jurisdiction.
- ✕Forgetting the federal 8% tier. Federally regulated employees reach 8% when the 4-week long-service tier applies.
- ✕Treating vacation pay and vacation time as the same thing. One is a dollar amount; the other is leave duration.
Official vacation pay sources
Primary government sources are used wherever possible so the rates can be checked against the applicable employment-standard guidance.
Rates and editorial guidance last reviewed . Government legislation and official guidance take precedence over this calculator.
Canada vacation pay FAQs
How is vacation pay calculated in Canada?
For percentage-based rules, multiply the vacationable earnings by the statutory percentage for the employee’s jurisdiction and service tier.
Is vacation pay always 4% in Canada?
No. Four per cent is a common initial rate, but many jurisdictions later move to 6%, Saskatchewan uses 5.77% and 7.69%, and federally regulated employment can reach 8%.
When does vacation pay increase to 6%?
The threshold depends on jurisdiction. Ontario, BC, Alberta and Manitoba use a 5-year milestone, Quebec reaches 6% at 3 years, and other provinces use different service thresholds.
What is Saskatchewan’s vacation pay rate?
Saskatchewan calculates vacation pay at 3/52 of wages, or 5.77%, during the first nine years. After completing 10 years with the same employer, 4/52, or 7.69%, applies.
Do federally regulated employees get 8% vacation pay?
Yes. The federal annual-vacation structure uses 4% for the 2-week tier, 6% for the 3-week tier and 8% for the 4-week tier.
Is vacation pay the same as vacation time?
No. Vacation pay is the monetary entitlement. Vacation time is the number of weeks or days of leave.
Is vacation pay taxable?
Vacation pay is employment income and is generally subject to the normal payroll deductions that apply to employment income.
Does overtime count toward vacation pay?
It depends on the jurisdiction. Saskatchewan expressly includes overtime in the earnings base, while Alberta’s vacation-pay definition excludes overtime pay. Check the applicable employment standard before entering the earnings figure.
Reviewed by Ruby Miller
Ruby Miller is LeaveCalculators.com’s HR & Employment Law Content Lead. Calculator guidance is checked against primary government employment-standard sources and updated when rules change.