Every Canadian province and territory gives employees a minimum amount of paid vacation, but the minimums, and the years of service that raise them, vary. This page sets out the vacation time and vacation pay you are owed where you work, how the pay is calculated and when it has to be paid. It is part of the workplace rights and employee benefits hub.
Federal minimums (Canada Labour Code)
The Canada Labour Code sets the floor for federally regulated employees (banks, airlines, telecommunications, interprovincial transport and the federal public service):
| Years of service | Vacation time | Vacation pay |
|---|---|---|
| Under 1 year | Prorated | 4% of wages |
| 1 to 5 years | 2 weeks | 4% of wages |
| 5 to 10 years | 3 weeks | 6% of wages |
| 10+ years | 4 weeks | 8% of wages |
Provincially regulated employees (most Canadian workers) fall under their province’s employment standards law.
Vacation pay by province
| Province | Minimum vacation time | Vacation pay % | Increases after |
|---|---|---|---|
| Ontario | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| British Columbia | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Alberta | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Quebec | 2 weeks (under 1 year: 1 day per full month of service, up to 2 weeks) | 4% | 3 weeks / 6% after 3 years |
| Manitoba | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Saskatchewan | 3 weeks | 3/52 of wages | 4 weeks after 10 years |
| Nova Scotia | 2 weeks | 4% | 3 weeks / 6% after 8 years |
| New Brunswick | 2 weeks | 4% | 3 weeks / 6% after 8 years |
| Newfoundland & Labrador | 2 weeks | 4% | 3 weeks / 6% after 15 years |
| PEI | 2 weeks | 4% | 3 weeks / 6% after 8 years |
| Northwest Territories / Nunavut | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Yukon | 2 weeks | 4% | 3 weeks / 6% after 5 years |
Quebec reaches the 3-week tier after 3 years of service, sooner than the other provinces in this table.
An employment contract or collective agreement can give you more than these minimums, but not less.
How vacation pay is calculated
Vacation pay is a percentage of the wages you earned in the vacation entitlement year, not just your base salary. Ontario’s employment standards guide lists what counts. The gross wages it is calculated on include:
- regular earnings, including commissions
- bonuses and gifts that are non-discretionary or related to hours of work
- overtime pay
- public holiday pay (see statutory holidays and the stat holiday pay calculator)
- termination pay
They don’t include vacation pay itself, tips, or discretionary bonuses and gifts that aren’t related to hours of work, production or efficiency. Other provinces use similar but not identical lists.
Formula: vacation pay = vacation-eligible wages × your vacation pay percentage.
An Ontario employee with 5 years of service earns $75,000 in vacation-eligible wages in the year and is entitled to 6%: vacation pay = $4,500.When vacation pay must be paid
When you take your vacation
The most common approach: you are paid your vacation pay for the time you take off. In Ontario it is generally paid in a lump sum before you take the vacation. The exceptions include vacation taken in periods of less than a week and wages paid by direct deposit (then it is due on or before the pay day for the period the vacation falls in), and an agreement to be paid on each cheque or at another agreed time.
On every paycheque
Some employers, particularly for employees with irregular hours, add vacation pay to each paycheque as it accrues. In Ontario that requires your written or electronic agreement, and the amount must be shown separately on your wage statement or on a separate statement (see how to read a pay stub). Being paid vacation pay this way doesn’t remove your right to the vacation time.
When the job ends
However vacation pay was handled during the job, vacation pay you earned and haven’t been paid is owed when your employment ends, whether you quit or were let go.
Vacation time: who decides when
You are entitled to the time off, not just the pay. In Ontario, vacation earned for a vacation entitlement year must be taken within 10 months after that year ends; the employer has the right to schedule it and the obligation to make sure it is taken before that deadline. You can give up some or all of your vacation time only with your employer’s written or electronic agreement and the approval of the Director of Employment Standards, and even then the vacation pay is still owed. Other provinces set their own scheduling and carry-over rules.
If your employer isn’t paying vacation pay
If vacation pay you earned hasn’t been paid, what to do when your employer owes you vacation pay walks through working out the amount, asking for it in writing and claiming it. Filing a claim with your provincial office is covered in how to file an employment standards complaint. If you were treated as a contractor but worked as an employee, vacation pay may be owed for the whole period.
Related reading
- Overtime Pay Rules in Canada: overtime thresholds by province
- Statutory Holidays in Canada by Province: holiday dates and holiday pay
- Sick Leave Rights by Province: job-protected sick days
- Notice and termination pay by province: what your employer owes you when your job ends
→ Back to: Workplace Rights and Employee Benefits