Canadian Payroll Guide

Vacationable Earnings

Need help determining which earnings vacation pay is calculated on? We've got you. Review this guide for all the information you need on vacationable earnings for regular salary, bonuses, allowances, and other taxable benefits by province.

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 consider 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.

Additional Resources

2024 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:

Regular Salary/Earnings
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Regular salary
Call-in pay
Overtime
Retroactive pay
Shift premium
Standby pay
•
Statutory holiday pay
Previously paid vacation pay
Allowances
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Car
5
8
Clothing
5
8
Housing
5
8
Meal
5
8
Moving
5
8
Tool
5
8
Travel
5
8
Bonuses
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Discretionary
Work related
Commission
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Earned at employer's premises
6
Earned away from employer's premises
6
Earned by route salesperson
6
Director's Fees
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Employee
3
•
•
Non-employee
3
•
•
Miscellaneous Earnings
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Maternity leave top-ups
9
Profit sharing payments
2
1
1
4
Tips/Gratuities employer controlled
Termination Payments
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Pay in lieu of notice (employment standards requirement)
Retiring allowance
5
Taxable Benefits
Earning Type
Fed
BC
AB
SK
MB
ON
QC
NB
PE
NS
NL
YK
NT
NU
Awards/gifts (in kind)
8
Board and lodging
8
7
Company owned/leased vehicle
8
Group term life insurance
8
Group RRSP plan payments
8
Loans (interest free)
8
Parking
8
Provincial medical
•
•
•
•
•
•
•
•
•
•
•
•
Stock options
8

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Notes

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.

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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.
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