How do I calculate stat holiday pay? Asked and answered!

“Stat pay” goes by many names in the payroll world! And whether it’s referred to in your jurisdiction as statutory holiday pay, general holiday pay, public holiday pay, or an indemnity, it simply means the wages that eligible employees are legislatively entitled to receive for working on or in lieu of a statutory holiday.

Like statutory holidays themselves, the legislation for stat pay differs between provinces and territories in Canada. It also varies between jurisdictions whether stat pay is applicable if the day itself is at the employer’s discretion, as well as by industry type (like construction or retail, as examples).

When it comes to statutory holiday pay legislation, there’s clearly a lot for Canadian businesses to navigate! In the first entry of this two-part blog series, we explored employee eligibility to receive statutory holiday pay; now, let’s take a closer look at the applicable statutory holiday pay calculations by province and territory…

British Columbia (BC)

There are 11 statutory holidays in BC where eligible employees receive statutory holiday pay whether or not they work that day.

Statutory holiday pay

In BC, statutory holiday pay is equal to an average day’s pay (the employee’s total wages divided by the number of days worked). In calculating statutory holiday pay for eligible employees in BC, employers must:

• Include all days worked during the 30 calendar days before the statutory holiday (with “days worked” meaning any day when wages were earned, including paid vacation days, other paid statutory holidays, and paid sick days).
• Include all wages: regular wages, salary, commissions, statutory holiday pay, paid vacation, and paid sick days (however, it does exclude overtime).

There are four different ways in which statutory holiday pay can be applied:

1. If an eligible employee doesn’t work on a statutory holiday, they’re entitled to receive an average day’s pay.
2. If an eligible employee works on a statutory holiday, they’re entitled to receive an average day’s pay plus time and a half for up to 12 hours.
3. If an eligible employee works on a statutory holiday, they’re entitled to receive an average day’s pay plus time and a half for up to 12 hours, and double-time for any hours beyond that.
4. If an employee isn’t eligible for statutory holiday pay but works on that holiday, they’re entitled to receive their regular wages for hours worked.

An employer and employee can agree in writing to substitute a different day for one of the designated statutory holidays. If they choose to do so, statutory holiday legislation applies to that day as well, including the parameters for statutory holiday pay.

There’s also an exception to this legislation of which employers should be mindful: there are eight employee groups who don’t receive statutory holiday pay (see the first blog article in this series for a summary of those groups!). BC employers are encouraged to check the Employment Standards Regulations for more information if this applies to their business.

For more information on statutory holiday pay, visit: https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/statutory-holidays/calculate-statutory-holiday-pay.

Alberta

There are nine general holidays in Alberta where eligible employees must be paid general holiday pay for working on or in lieu of the holiday.

General holiday pay

In Alberta, general holiday pay equals a worker’s average daily wage. Employers should be extra-aware of how the average rate is calculated here, because in many jurisdictions across Canada there’s only one calculation… whereas in Alberta, there are two!

The average daily wage is determined by dividing an employee’s wages by the number of days they worked:

1. Four weeks or 28 days before the general holiday, or;
2. Four weeks or 28 days ending on the last day of the previous pay period that preceded the holiday.

Employment status (full-time, part-time, or casual) doesn’t impact eligible employees’ receipt of general holiday pay; rather, the question is whether or not the general holiday falls on a regular working day (and/or if the employee works that day). If an employee’s typical schedule is Monday-Friday, those are considered their regular work days. To determine what would be considered a regular day of work for an employee with an irregular schedule, use “the Five of Nine rule”.

There are three different ways general holiday pay can be applied:

1. If an eligible employee doesn’t work on a general holiday that falls on a regular working day, they’re entitled to receive general holiday pay.
2. If an eligible employee doesn’t work on a general holiday that doesn’t fall on a regular working day, they’re not entitled to receive general holiday pay.
3. If an employee works on a general holiday, general holiday pay can be applied one of two ways:
   1. The employee can be paid time and a half for hours worked, plus their average daily wage. This applies whether or not the general holiday falls on a regular working day, and Alberta employers should note these hours don’t count towards overtime.
   2. The employee can receive time off in lieu (their average daily wage during a future day off). This applies whether or not the general holiday falls on a regular working day, and Alberta employers should note that overtime calculations do apply if this option is chosen.

In Alberta, it’s permissible for an employee to ask their employer to recognize an additional general holiday or for an employer to choose to recognize an additional day. While this could be any day in the calendar year, days commonly recognized include Easter Monday, Heritage Day, National Day for Truth and Reconciliation, and Boxing Day. Alberta employers should be aware that if they choose to recognize an optional general holiday, all the employment standard rules related to general holidays, including general holiday pay, apply to that day.

For more information on general holiday pay in Alberta, visit: https://www.alberta.ca/alberta-general-holidays.

Saskatchewan

In Saskatchewan, there are 10 public holidays where “for most employees, these are days off with pay” (according to the province’s website). “Some employees may be required to work and special wage rates would apply.”

Public holiday pay

In Saskatchewan, public holiday pay is equal to a normal day’s pay. How that’s applied depends on whether the employee is paid hourly, is salaried, or is an hourly-paid construction employee. There are also specific parameters if an employee quits, is laid off, or is terminated before a public holiday.

Typically, an eligible employee will receive the day off with public holiday pay, but there are also two other ways this can be applied:

1. Eligible employees who work on a public holiday are entitled to receive pay for working on a public holiday: their normal day’s pay plus time and a half. Employers should note this legislation includes employees in managerial roles, professional employees, and operators of group homes.
2. There are special circumstances regarding qualifying for daily overtime for the week of a public holiday, and for workplaces with a modified work arrangement or averaging hours permit. On the week a public holiday lands, employees are generally to receive overtime pay after working 32 hours, which doesn’t include hours worked on the public holiday itself.

For more information on pay for working on a public holiday, public holiday pay, and overtime the week of a public holiday in Saskatchewan, visit: https://www.saskatchewan.ca/business/employment-standards/public-statutory-holidays/paying-employees-for-public-holidays.

Manitoba

There are nine general holidays in Manitoba where most employees receive general holiday pay whether or not they’re working that day.

General holiday pay

For eligible employees who consistently work the same number of hours, general holiday pay is equal to a regular day’s pay. For eligible employees who have irregular schedules or varying wages, general holiday pay equals 5% of their gross wages in the four weeks (28 days) prior to the holiday, excluding overtime.

Here are two examples of how general holiday pay is applied in the province:

1. An eligible employee receives the general holiday off with general holiday pay (a regular day’s pay).
2. An eligible employee who works on a general holiday is entitled to receive time and a half for all hours worked.

Manitoba employers should note that there’s specific legislation applicable to the construction industry, including the parameters for general holiday pay. Those in the construction industry earn 4% general holiday pay each pay period on their regular earnings and vacation pay, but not on their overtime earnings. This can either be paid out each pay period or in full at the end of the year. If a construction employee works on a general holiday, the overtime wage rate is applied.

For more information on general holidays in Manitoba, visit: https://www.gov.mb.ca/labour/standards/doc,gen-holidays-after-april-30-07,factsheet.html.

Ontario

There are nine public holidays in Ontario, where eligible employees are entitled to receive the day off work with public holiday pay.

Public holiday pay

Public holiday pay in Ontario has a specific calculation, which is:

An employee’s regular wages in the four weeks preceding the public holiday, plus all vacation pay payable to the employee in the four weeks preceding the public holiday, divided by 20. To note, the four weeks preceding the public holiday is not necessarily a calendar week but rather, it’s the employer’s work week.

There are a few ways public holiday pay can be applied:

1. An eligible employee receives the public holiday off with public holiday pay.
2. An eligible employee provides acknowledgement (either electronically or in writing) to work on a public holiday. If they do work, they’re entitled to receive either:
   1. Public holiday pay in addition to a premium for all hours worked (premium pay is time and a half, which is not included in overtime calculations).
   2. Their regular wages for all hours worked and another day off in lieu with public holiday pay.
3. An eligible employee who is on vacation during the public holiday is entitled to either receive a substitute day off with public holiday pay or public holiday pay without being given a substitute day off (if agreed to electronically or in writing). This is also applicable if the public holiday occurs during a non-working day.

Payworks pro tip: Payworks’ Human Resources solution enables businesses to easily obtain and track employee acknowledgement as required. The Company Documents feature allows employers to circulate important documents to employees, where they can then provide digital acknowledgement of the forms. The documents can be saved in the Employee Profile management system, which acts as a digital “file folder” to house records for each staff member.

Ontario employers should be aware that there are special rules and exemptions when it comes to both employee eligibility for public holidays and public holiday pay. For more information on these legislated exceptions, visit: https://www.ontario.ca/document/industries-and-jobs-exemptions-or-special-rules.

For more information on public holiday pay in Ontario, visit: https://www.ontario.ca/document/your-guide-employment-standards-act-0/public-holidays#section-6.

Québec

There are eight paid statutory holidays in Québec where eligible employees are to receive the day off and an indemnity (compensation).

Employers in the province should be aware of two provisions when it comes to paid statutory holidays:

• They’re unable to choose a different day to observe the holiday.
• They have the option to observe either Good Friday or Easter Monday.

Compensation for paid statutory holidays

The indemnity eligible employee receive for paid statutory holidays is typically 5% of the employee’s wages in the four weeks preceding the holiday. However, employers should be aware that calculations differ if the employee earns tips or is paid by commission. For more information on indemnity calculations, visit: https://www.cnesst.gouv.qc.ca/en/working-conditions/leave/statutory-holidays/calculating-indemnity-statutory-holiday.

There are a few ways compensation for paid statutory holidays can be applied:

1. Eligible employees receive the day off and an indemnity.
2. An employee works on a paid stat holiday and is entitled to receive either:
   1. Their wages for the day plus an indemnity.
   2. Their wages for the day and a paid holiday in the three weeks leading up to the holiday (the latter has an exception: it cannot be chosen for the National Holiday).

For more information on paid statutory holidays in Québec, visit: https://www.cnesst.gouv.qc.ca/en/working-conditions/leave/statutory-holidays/list-paid-statutory-holidays.

Newfoundland and Labrador (NL)

There are six public holidays in NL, any of which can be substituted with a different date of recognition if outlined in the workplace’s collective agreement.

Public holiday pay

In NL, public holiday pay is equal to an average day’s pay. Employers should note that calculating public holiday pay for shift work or those with varying hours differs in the province in comparison to other jurisdictions in Canada. To determine what the average day’s pay would be, the employee’s hourly rate is multiplied by their average of hours worked per day in the three weeks leading up to the public holiday.

There are a few different ways public holiday pay can be applied:

1. An eligible employee doesn’t work on the public holiday and receives public holiday pay.
2. An employee who works on a public holiday is entitled to receive either double-time for hours worked or an additional vacation day or additional day off with pay within 30 days of the holiday.

For more information on public holiday pay in NL, visit: https://www.gov.nl.ca/ecc/files/Publications_Labour_Relations_At_Work_Updates_October-2022.pdf.

New Brunswick (NB)

There are eight paid public holidays in New Brunswick where eligible employees are entitled to receive the day off with holiday pay.

Holiday pay

Holiday pay is equal to a regular day’s pay in New Brunswick. For employees whose work schedules vary, employers can calculate what their regular day’s pay is by averaging all hours worked in the 30 days before the holiday (excluding overtime).

There are a few different ways holiday pay can be applied:

1. An eligible employee doesn’t work on the paid public holiday and receives holiday pay.
2. An eligible employee works on the paid public holiday and is entitled to receive holiday pay plus time and a half for their hours worked.
3. An employee who isn’t eligible for holiday pay works on the paid public holiday; they’re entitled to receive time and a half for their hours worked.

It’s also possible for the employee to receive a different working day off in lieu of a paid public holiday; however, this has to be agreed upon by the employer and employee. There are specific legislative parameters to substitute a day for a paid public holiday, including maintaining records of the substituted day off and any agreement with employees. For more information, visit: https://www2.gnb.ca/content/dam/gnb/Departments/petl-epft/PDF/es/FactSheets/PublicHolidaysVacation.pdf.

Payworks pro tip: Remember that the Employee Profile management system within Payworks’ Human Resources solution is a secure, cloud-based digital “file folder” that houses employee records just like the ones described above! The Company Documents feature also enables employers to circulate workplace procedures, like time off guidelines.

For more information on holiday pay in New Brunswick, visit: https://www2.gnb.ca/content/dam/gnb/Departments/petl-epft/PDF/es/FactSheets/PublicHolidaysVacation.pdf.

Nova Scotia

There are six paid holidays in Nova Scotia where eligible employees typically receive the day off with holiday pay.

Employers in the province should be aware that there’s separate legislation for Remembrance Day (the Remembrance Day Act), which outlines specific parameters for holiday pay on November 11. There’s also separate legislation governing designated retail closing days. The application of holiday pay for these days can vary (taking into consideration that some retail closing days are also paid holidays).

Holiday pay

Holiday pay in Nova Scotia is equal to a regular day’s pay. For employees with irregular schedules, a regular day’s pay can be calculated by averaging the hours worked in the 30 days before the holiday. If the employee’s remuneration includes commissions, those commissions are also included in the calculations. Employers should also be aware that vacation pay is to be accounted for with employees receiving holiday pay.

There are a few ways holiday pay can be applied:

1. Eligible employees who don’t work on a paid holiday are entitled to receive holiday pay.
2. Eligible employees who work on a paid holiday are entitled to receive holiday pay plus time and a half for hours worked on the holiday.

There are nine employee groups where holiday pay rules don’t apply. For more information on holiday pay in Nova Scotia, including those exceptions, visit: https://novascotia.ca/lae/employmentrights/holidaypay.asp.

Prince Edward Island (PEI)

There are eight paid holidays in PEI where eligible employees are typically entitled to take the day off work with holiday pay.

Holiday pay

Holiday pay is equal to a regular day’s pay in PEI. For employees with irregular schedules, a regular day’s pay can be calculated by averaging the hours worked over the 30 days before the paid holiday.

There are a few ways this can be applied:

1. Eligible employees who don’t work on a paid holiday are entitled to receive holiday pay.
2. Eligible employees who don’t work on a paid holiday because they’re not scheduled to do so are entitled to receive an additional day off with holiday pay.
3. Eligible employees who work on a paid holiday are entitled to receive holiday pay plus time and a half for their hours worked, or another day off with pay before their next paid vacation day.

For more information on holiday pay in PEI, visit: https://www.princeedwardisland.ca/en/information/workforce-advanced-learning-and-population/paid-holidays.

Yukon

There are 11 statutory holidays in the Yukon where eligible employees receive the day off with general holiday pay.

General holiday pay

In the Yukon, general holiday pay is applied differently depending on how an employee is paid:

1. If an eligible employee is paid through an hourly rate, they’re to receive the day off with a regular day’s pay (the employee’s regular wage for their normal hours of work).
2. If an eligible employee receives a monthly or weekly salary, they’re to receive a day off without a decrease in earnings.
3. If an eligible employee is compensated by commission or piece work, they’re to receive the day off with general holiday pay equaling their average daily wage (not including overtime or bonuses the week of the statutory holiday).
4. If an eligible employee works irregular hours, they’re to receive the day off with general holiday pay equaling 10 per cent of their wages over the two calendar weeks prior to the holiday (including overtime, but not including vacation pay).
5. If an eligible employee works on a statutory holiday, they’re to receive either general holiday pay plus overtime for hours worked on that day, or their regular wages for hours worked plus an additional day off with pay.

Employers in the Yukon should note that all employees, regardless of eligibility, are entitled to receive general holiday pay and overtime if they work on a statutory holiday. There are also non-statutory holidays that may be recognized as such in an employment contract, such as Heritage Day or Boxing Day. If that’s the case, employees may also receive general holiday pay for those days.

For more information on general holiday pay in the Yukon, visit: https://yukon.ca/en/employee-information-statutory-holidays.

Northwest Territories

There are 11 statutory holidays in the Northwest Territories where eligible employees are entitled to receive the day off with general holiday pay.

General holiday pay

General holiday pay in the Northwest Territories is equal to an average day’s pay. Employers are encouraged to contact Employment Standards for more information on statutory holidays (in particular, details for paying employees the week of the holiday, and parameters around employees paid on a basis other than time or on unpaid leaves).

There are a few ways general holiday pay can be applied:

1. Eligible employees receive the day off with general holiday pay.
2. Eligible employees who work on a statutory holiday are entitled to receive either another day off with pay or general holiday pay plus overtime for hours worked.

For more information on general holiday pay in the Northwest Territories, visit: https://www.ece.gov.nt.ca/sites/ece/files/resources/2021_08-_factsheet-_employment_standards_-_english_1.pdf.

Nunavut

There are 10 general holidays in Nunavut where eligible employees are to receive the day off with general holiday pay.

General holiday pay

In Nunavut, general holiday pay is equal to a regular day’s pay. There are a few ways this can be applied:

1. If an eligible employee doesn’t work on a general holiday, they’re entitled to receive general holiday pay.
2. If an eligible employee works on a general holiday, they’re entitled to receive either another day off with pay or general holiday pay plus time and a half for hours worked.

For more information on general holiday pay in Nunavut, visit: https://www.nu-lsco.ca/faq-s.

Yes, Payworks can help with statutory holiday pay calculations!

As we mentioned, our Time Management solution has a Statutory Holiday Calculator: an intuitive tool that does exactly what its name says. It’s designed to make the statutory holiday pay calculation process a breeze in under five clicks (yes, it really is that simple!).

The number of stat holidays are entered for the pay period and from there, the statutory holiday pay is calculated on your behalf for each employee and based on the employee eligibility criteria you’ve already set up in the system. These tallies can be reviewed and then applied to payroll, with the Statutory Holiday Calculator values visible on the Pay Grid. Did we just hear a sigh of relief?

To learn more about all of the ways our Time Management solution can streamline the day-to-day tasks of tracking and paying employees properly for their hours worked (on holidays or otherwise!), visit: https://www.payworks.ca/landing-pages/product/time-management.