Vacation pay is a percentage of your gross wages — 4% or 6% in Ontario, and 4%/6%/8% federally by length of service. Estimate what you've earned or are owed on leaving.
Vacation pay accrues as a % of gross wages. All figures in Canadian dollars.
| Rule | Detail |
|---|---|
| Ontario — under 5 years | 4% of gross wages (2 weeks vacation) |
| Ontario — 5+ years | 6% of gross wages (3 weeks vacation) |
| Federal — 1 to 5 years | 4% of gross wages (2 weeks) |
| Federal — 5 to 10 years | 6% of gross wages (3 weeks) |
| Federal — 10+ years | 8% of gross wages (4 weeks) |
| On leaving | All accrued unpaid vacation pay must be paid out |
Vacation pay is calculated on gross wages (excluding vacation pay itself). Federally, the 8% tier at 10 years is the key difference from Ontario, which tops out at 6%. Source: ontario.ca / canada.ca.
It's 4% of your gross wages if you've been employed under 5 years (equivalent to 2 weeks' vacation), and 6% once you reach 5 years (3 weeks). On leaving, any vacation pay you've accrued but not taken must be paid out.
Under the Canada Labour Code it's 4% after 1 year (2 weeks), 6% after 5 consecutive years (3 weeks), and 8% after 10 consecutive years (4 weeks). The 8% tier is the main difference from Ontario, which caps at 6%.
Yes. Vacation pay accrues on your wages regardless of how the job ends, so any accrued but unpaid vacation pay must be included in your final pay.
On gross wages — your earnings before deductions — and generally excluding vacation pay already paid. Overtime and most wages count toward the base it's calculated on.
Yes. Vacation pay is a separate entitlement from termination and severance pay, and all accrued vacation pay is owed in your final settlement.