Canadian Payroll Guide

Vacation Pay

Give your team the well-deserved time off they've earned, while keeping your payroll compliant. Our guide helps you easily calculate your employee’s vacation pay, including provincial vacation pay rates and annual employee vacation entitlements.

What is vacation pay?

Vacation pay is calculated as a percentage of the gross wages an employee earns during a year of employment. A year of employment is defined as the period beginning on the date an employee is hired, or on any anniversary of that date, and ending 12 consecutive months later. The rate and entitlements for vacation pay vary by province and territory.

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2024 Vacation Pay & Entitlements by Province

The following table outlines the current provincial vacation pay rates and annual employee vacation entitlements:

Jurisdiction
Vacation Pay
Vacation Entitlements
Federal
4% after one year
6% after five years
8% after ten years
After one year: 2 weeks
After five years: 3 weeks
After ten years: 4 weeks
4% for the first five years
6% after five years
After one year: 2 weeks
After five years: 3 weeks
4% for the first five years
6% after five years
After one year: 2 weeks
After five years: 3 weeks
4% for the first five years
6% after the five years
After one year: 2 weeks
After five years: 3 weeks
4% for less than eight years
6% after eight years
Less than eight years: 1 day per month worked or 2 weeks per year
After eight years: 1.25 days per month worked or 3 weeks per year
4% up to 15 years
6% after 15 years
Less than 15 years: 2 weeks
15 years or more: 3 weeks
4% for the first five years
6% for six years or more
After one year: 2 weeks
After six years: 3 weeks
4% for the first seven years
6% after seven years
After 12 months: 2 weeks
After eight years: 3 weeks
4% for the first five years
6% for six years or more
After one year: 2 weeks
Six or more years: 3 weeks
4% for less than five years
6% after five years
After one year: 2 weeks
After five years: 3 weeks
4% for less than eight years
6% after eight years
Less than eight years: 2 weeks
Eight years or more: 3 weeks
4% for less than three years
6% after three years
Less than one year: 1 day per month not exceeding 2 weeks
One to less than three years: 2 uninterrupted weeks
Three years and over: 3 uninterrupted weeks
5.77% for the first 9 years
7.69% after 10 years
After one year: 3 weeks
After ten years: 4 weeks
4% of wages
After one year: 2 weeks
Disclaimer: The information provided in this guide is for informational purposes only. It is not professional financial or legal advice nor is it intended to be a substitute therefore. Where there are discrepancies between the guide and information provided by the federal government, provincial government, or the Canadian Revenue Agency (CRA) or Revenu Québec, defer to the guidelines provided by the governing agencies.
Reporting PayVacationable Earnings

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