Vacation Pay Calculator — Canada (All Provinces) 2026
Statutory vacation pay of 4%, 6% or 8% (Saskatchewan 3/52 and 4/52) of gross wages by province and years of service, vacation time entitlement, pay already taken, the balance owing on termination and the tax on a lump-sum payout.
| Statutory minimum rate | — |
|---|---|
| Rate applied | — |
| Vacation time entitlement | — |
| Vacation pay earned | — |
| Already paid / taken | — |
| Balance owing | — |
| Per week of vacation | — |
| When the rate steps up | — |
| Tax on a lump-sum payout | — |
In short
Vacation pay in Canada is at least 4% of gross wages (two weeks), rising to 6% (three weeks) after five years of service in Ontario, BC, Alberta and Manitoba, three in Quebec, eight in the Maritimes and fifteen in Newfoundland — Saskatchewan pays 3/52 then 4/52 after ten years and federal employers 4%, 6% and 8% — and all accrued vacation pay is owed with the final pay on termination.
Who this is for: Employees checking what they are owed (especially on leaving a job) and small employers calculating accruals in any province.
Vacation pay rules across Canada
Every Canadian employee earns vacation pay as a percentage of gross wages in addition to vacation time: the standard minimum is 4% (two weeks), rising to 6% (three weeks) after a service threshold that varies by province — five years in Ontario, BC, Alberta and Manitoba, three in Quebec, eight in the Maritimes, fifteen in Newfoundland. Saskatchewan is more generous (3/52 ≈ 5.77%, then 4/52 ≈ 7.69% after ten years), as is federal jurisdiction (4%, 6% after five years, 8% after ten).
- What counts as wages: regular pay, commissions, most bonuses and (in Ontario and BC) overtime — but not vacation pay itself, tips or discretionary gifts.
- How it is paid: in a lump sum before the vacation, or on every pay cheque if agreed in writing and shown separately; paying it on each cheque means nothing extra arrives when you take time off.
- Termination: all accrued vacation pay is owed with the final pay whatever the reason for leaving, and continues to accrue during the statutory notice period.
- Time off: the time entitlement (2 or 3 weeks) must be taken within 10 months of the end of the entitlement year in Ontario; employers can schedule it but cannot pay it out in lieu of time without consent.
- Part-time and casual: the percentage applies equally — there is no minimum service for vacation pay, only for the step-up.
See also: Ontario Severance Pay Calculator, Canada Take-Home Pay Calculator 2026.
Assumptions
- Rate from the provincial/federal table by completed years of service, or the contract rate if higher; vacation pay = gross wages × rate; weeks = rate × 52.
- Taken days valued at the average weekly wage ÷ 5; balance = pay − paid out − taken.
- Tax on a lump sum = tax at (wages + balance) − tax at wages using the 2026 engine for the province (Ontario for federal employers).
Worked example
After five years the Ontario minimum is 6% → vacation pay $3,900 and three weeks (15 days) of vacation time. Five days taken used about $1,250 (one week at the $1,250 weekly wage), leaving $2,650 accrued. At 4 years of service the same wages would earn $2,600 and two weeks. Paid as a lump sum on leaving, the $2,650 attracts about $790 of income tax in Ontario.
Frequently asked questions
How is vacation pay calculated in Ontario?
4% of gross wages earned in the vacation entitlement year for employees with under five years' service, 6% after five years — on all wages including commissions and overtime, excluding vacation pay itself.
When does vacation pay go up to 6%?
After five completed years of service in Ontario, BC, Alberta and Manitoba; after three in Quebec; after eight in Nova Scotia, New Brunswick and PEI; after fifteen in Newfoundland. Saskatchewan moves from 3/52 to 4/52 after ten years; federal employers go to 6% at five and 8% at ten.
Is vacation pay paid on top of salary?
Yes — it is an additional 4–6% of wages, either paid as a lump sum when you take vacation or added to each pay cheque (shown separately) if you agree in writing.
Do I get vacation pay when I quit?
Yes — all accrued, unpaid vacation pay must be paid with your final wages whether you quit or are fired, usually within seven days or by the next regular pay day.
Is vacation pay taxable?
Yes — it is employment income subject to income tax, CPP and EI; a lump sum may be over-withheld and corrected at filing.
Can an employer pay vacation pay instead of giving time off?
Not unilaterally — the time entitlement is separate, and in most provinces the employee must agree in writing (and the Director of Employment Standards approve, in Ontario) to forgo vacation time.
Does vacation pay accrue on overtime and bonuses?
In Ontario and BC yes (overtime, commissions and most bonuses are wages); in Alberta vacation pay is calculated on wages excluding overtime; discretionary gifts and tips are excluded everywhere.
Can my employer deny my vacation request?
They can schedule vacation to suit operations but must ensure you take the statutory time within the prescribed period (10 months after the entitlement year in Ontario, 12 in BC).
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