What are vacationable earnings?
Vacationable earnings are those on which vacation pay is calculated, according to federal and/or provincial employment standards. An employee’s vacation entitlement is accrued throughout the year, but not all of their earnings within that same period are considered vacationable. Vacationable earnings typically include regular earnings, overtime, shift premium pay, public holiday pay, commissions and bonuses related to hours of work, production or efficiency, but it’s important to know that this varied by province or territory.
2023 Vacationable Earnings by Province
The following table outlines vacationable earnings for regular salary, bonuses, allowances, commission, director's fees, miscellaneous earnings, termination payments and taxable benefits by province:
1Unless tied to hours of work, production or efficiency
2If included in wages or remuneration for work
3Included where fee is defined as a "wage" (condition of employment)
4Excluded if part of a Deferred Profit Sharing Plan (DPSP)
5May be included in unique circumstances
6Majority earned must be salary
7Determined on a case by case basis
8In Québec, taxable benefits and allowances may be classified as vacationable under certain conditions. Please refer to the Quebec Labour Standards (CNESST) for more information.
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.