2026 Canada vacation pay rules

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.

All 10 provincesFederal rules2026 rates Official-source checkedNo sign-up

Calculate your vacation pay estimate

Enter the earnings base that counts as vacationable wages in your jurisdiction.

Live result
Estimated minimum vacation pay —

Rates reviewed

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.

JurisdictionInitial rateHigher rateLong-service rate
Ontario4%6% at 5+ years—
British Columbia4%6% after 5 consecutive years—
Alberta4% for percentage-based method6% at 5+ years—
Quebec Earlier tier4%6% at 3+ years—
Saskatchewan Different rates5.77%—7.69% after 10 years
Manitoba4%6% after 5 years—
New Brunswick4%6% at 8+ years—
Nova Scotia4%6% at start of 8th year—
Prince Edward Island4% through 5 years6% after more than 5 years—
Newfoundland & Labrador4%6% at 15+ years—
Federal 3 tiers4%6% at 5+ years8% at 10+ years
Statutory minimum ≠ employer maximum. An employment contract, collective agreement or employer policy can provide more vacation pay than the minimum shown here.

How the Canada vacation pay calculator works

The percentage-based calculation is straightforward:

Vacation pay = vacationable earnings × applicable vacation pay rate

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.
Important Alberta limitation: Alberta uses a different statutory method for employees paid by monthly salary: regular pay for the vacation period is used rather than simply multiplying annual wages by 4% or 6%. The percentage result in this tool is most directly suited to Alberta employees paid hourly, weekly, by commission or another incentive method.

Vacation pay calculation examples

Ontario $52,000 earnings · 3 years

4% applies: $52,000 × 0.04 = $2,080.

Quebec $52,000 earnings · 4 years

6% applies: $52,000 × 0.06 = $3,120.

Saskatchewan $38,000 earnings · 2 years

5.77% applies: $38,000 × 0.0577 = $2,192.60.

Saskatchewan $60,000 earnings · 12 years

7.69% applies: $60,000 × 0.0769 = $4,614.

Federal $75,000 earnings · 12 years

8% applies: $75,000 × 0.08 = $6,000.

Newfoundland & Labrador $50,000 earnings · 10 years

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.

Ruby Miller

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.