Vacation Pay Calculator

Vacation Pay Rules Across Canadian Provinces

Canadian employment standards legislation guarantees minimum vacation entitlements that vary by province and length of service. The baseline across most provinces is 4% of gross earnings (equivalent to 2 weeks of paid vacation) during the first five years of employment. After five consecutive years with the same employer, several provinces increase the entitlement: British Columbia, Quebec, and the three territories mandate 6% (3 weeks), while Saskatchewan offers particularly generous rates of 5.77% (3 weeks) from the start and 7.69% (4 weeks) after 10 years of service.

Vacation pay can be administered through two methods: accrual and pay-out. Under the accrual method, employers bank vacation pay and release it when the employee takes time off. Under the pay-out method, vacation pay is added to each paycheque (often seen with part-time or contract workers) and no additional payment is made when time off is taken. Employers must clearly indicate the method being used. Regardless of method, vacation pay is calculated on “vacationable earnings,” which includes regular wages, commissions, and in most provinces, overtime pay. It does not typically include tips, board, lodging, or discretionary bonuses.

Minimum Vacation Entitlements by Province (2026)

When employment ends, all accrued but unused vacation pay must be paid out in the final paycheque. This is a legal obligation regardless of the reason for termination. Employees who believe their vacation pay has been calculated incorrectly can file a complaint with their provincial employment standards office. Many employers offer vacation entitlements above the statutory minimum as part of their compensation package — it is common for professional roles to include 3–4 weeks from day one, with increases tied to tenure milestones.