Canadian payroll legislation: vacation pay rates and entitlements

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Vacation pay is remuneration paid to an employee for the vacation time off to which they are entitled according to their years of service. 

In Canada, the rate at which employees accrue vacation pay varies between provinces and territories. Typically, an employee will earn a percent of specified wages starting on their first day of employment. That percent typically increases after a certain amount of years worked at the same organization, which is referred to as vacation entitlement. Those percent increases also vary between jurisdictions. 

Payworks has summarized the current provincial holiday pay rates and annual employee vacation entitlements for you in this convenient chart: 

British Columbia

Vacation Pay 4% for the first 5 years
6% after 5 years
Vacation Entitlements After 1 year - 2 weeks
After 5 years - 3 weeks

 

Alberta

Vacation Pay 4% for the first 4 years
6% for 5 years or more
Vacation Entitlements After 1 year - 2 weeks
After 5 years - 3 weeks

 

Saskatchewan

Vacation Pay 3/52 (5.77%) for the first 9 years
4/52 (7.69%) after 10 years
Vacation Entitlements After 1 year - 3 weeks
After 10 years - 4 weeks

 

Manitoba

Vacation Pay 4% for the first 5 years
6% after 5th consecutive year
Vacation Entitlements After 1 year - 2 weeks
After 5 years - 3 weeks

 

Ontario

Vacation Pay 4% for less than 5 years
6% for 5 years or more
Vacation Entitlements After 1 year - 2 weeks
After 5 years - 3 weeks

 

Québec

Vacation Pay 4% for less than 3 years
6% for 3 years and over
Vacation Entitlements Less than 1 year - 1 day per month not exceeding 2 weeks
1 to less than 3 years - 2 uninterrupted weeks
3 years and over – 3 uninterrupted weeks

 

Entitlements for Québec employees in the clothing manufacturing industry:

Vacation Pay

Less than one year - 4% 

1 year to less than 3 years - 6%

3 years and over - 8%

Vacation Entitlement 

Less than one year - 1 day per full month of uninterrupted service without exceeding 2 weeks

1 year to less than three years - 3 weeks, 2 weeks of which are continuous 

3 years and over - 4 weeks, 3 weeks of which are continuous

 

New Brunswick

Vacation Pay 4% for less than 8 years
6% after 8 years
Vacation Entitlements 1 to less than 8 years - 2 regular weeks or 1 day for each calendar month worked
8 years or more – 1 ¼ day/month worked or 3 weeks

 

Nova Scotia

Vacation Pay 4% for the first 7 years
6% at the start of the 8th year of service
Vacation Entitlements After 12 months - 2 weeks
After 8 years of service - 3 weeks

 

Prince Edward Island

Vacation Pay 4% for less than 8 years
6% for 8 years or more
Vacation Entitlements 1 to less than 8 years – 2 weeks
8 years or more - 3 weeks

 

Newfoundland & Labrador

Vacation Pay 4% up to 5 years
6% for 5 completed years
Vacation Entitlements 1 to 15 years - 2 weeks
15 years or more - 3 weeks

 

Yukon

Vacation Pay 4%
Vacation Entitlements After 1 year - 2 weeks

 

Northwest Territories

Vacation Pay 4% for the first 5 years
6% for the 6th and subsequent years 
Vacation Entitlements After 1 year - 2 weeks
After 6 completed years - 3 weeks

 

Nunavut

Vacation Pay 4% for the first 5 years
6% for the 6th and subsequent years
Vacation Entitlements After 1 year - 2 weeks
After 6 years - 3 weeks

 

Federal Government

Vacation Pay 4% after 1 year

6% after 5 years

8% after 10 years

Vacation Entitlements After 1 year - 2 weeks

After 5 years - 3 weeks

After 10 years - 4 weeks

 

For more up-to-date Canadian payroll legislation, visit Payworks website by clicking here

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