Vacation Pay Calculator

Vacation Pay Rules Across Canadian Provinces

Canadian employment standards legislation guarantees minimum vacation entitlements that vary by jurisdiction and length of service. The entry rate is 4% of gross earnings (equivalent to 2 weeks of paid vacation) everywhere except Saskatchewan, which starts at 5.77% (3 weeks). What differs most is when the rate steps up to 6% (3 weeks), and it is rarely the “5 years” that most summaries quote: Quebec increases after just 3 years, Alberta, British Columbia, Manitoba and Ontario after 5, the Northwest Territories and Nunavut after 6, New Brunswick, Nova Scotia and Prince Edward Island after 8, and Newfoundland and Labrador only after 15. Yukon never increases — it stays at 4% regardless of tenure. Saskatchewan moves to 7.69% (4 weeks) after 10 years.

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.

If your employer is federally regulated — a bank, airline, railway, telecom, interprovincial trucking firm, port, or federal Crown corporation — provincial rules do not apply to you at all. The Canada Labour Code sets its own ladder: 4% (2 weeks) to start, 6% (3 weeks) after 5 consecutive years, and 8% (4 weeks) after 10 consecutive years with the same employer. An employee at a bank in Ontario therefore follows the federal 8% ladder, not Ontario’s 6% ceiling. Select “Federal (Canada Labour Code)” in the calculator for that case.

Minimum Vacation Entitlements by Jurisdiction (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.