💼 PAYROLL & INCOME · UPDATED 2026
Vacation Pay Calculator
Calculate your vacation pay entitlement under Canadian employment law — including days off, vacation pay percentage, accrued pay owing, and what you're owed if your job ends.
Canadian Vacation Pay Rules by Province
Vacation pay in Canada is governed by provincial employment standards legislation, not federal law (unless you work for a federally regulated employer). Most provinces require a minimum of 2 weeks of vacation time and vacation pay of 4% of gross annual earnings in the first years of employment, increasing to 3 weeks and 6% after a specified number of years of service. Alberta requires 2 weeks and 4% immediately, increasing to 3 weeks and 6% after 5 years. Ontario and British Columbia follow the same 2-week, 4% standard with increases at 5 years of service.
Vacation pay is earned on all insurable earnings including overtime, commissions, bonuses, and other compensation — not just base salary. This means higher earners with variable compensation may be entitled to more vacation pay than they realize. Vacation pay must be paid either as a lump sum when vacation is taken or, for some categories of employees, as a percentage added to each paycheque.
What Happens to Unused Vacation Pay When You Quit?
When your employment ends — whether you resign, are laid off, or are terminated — your employer must pay out all accrued and unused vacation pay. This applies regardless of the reason for termination and is a protected entitlement under every provincial employment standards act. The payout must be made on your final paycheque or within a short window specified by your province. If you are owed vacation pay that was not paid on termination, you can file a complaint with your provincial employment standards office at no cost.
Frequently Asked Questions
Is vacation pay taxable in Canada?
Yes — vacation pay is fully taxable as employment income and is subject to income tax, CPP contributions, and EI premiums, just like regular wages. When vacation pay is paid as a lump sum (either when vacation is taken or upon termination), your employer should calculate withholding as if it were a regular pay period. A large lump sum vacation payout at year-end can push you into a higher bracket temporarily — though your annual tax calculation on your T1 return will correct for any over or under-withholding.
Can my employer make me take vacation at a specific time?
Yes — in most provinces, employers have the right to schedule when employees take their vacation, as long as they provide reasonable advance notice (usually at least 2 weeks). Employers must ensure vacation is taken within a specific period after it is earned — typically within 10 to 12 months. If an employer requires you to take vacation at a time that conflicts with your plans, they should generally give you notice of at least 2 weeks. Some collective agreements provide stronger protections for unionized workers regarding vacation scheduling.
How does vacation pay work for part-time employees in Canada?
Part-time employees are entitled to the same vacation pay percentage as full-time employees under provincial employment standards — typically 4% of gross earnings. Because part-time employees earn less annually, the dollar amount of their vacation pay is lower, but the percentage entitlement is identical. Many part-time employees receive their vacation pay automatically as 4% added to each paycheque (called "vacation pay in lieu of time off") rather than being entitled to specific days off, particularly if their schedule is irregular.
Do stat holidays count as vacation days in Canada?
No — statutory (public) holidays are separate from vacation entitlement in every Canadian province. You are entitled to both vacation days and paid stat holidays independently. If a stat holiday falls during your scheduled vacation, you are generally entitled to an additional day of vacation in lieu. The number of stat holidays varies by province: Ontario has 9 per year, BC has 10, Alberta has 9, and federal employees have 11. Some collective agreements or employment contracts provide additional holidays beyond the provincial minimums.
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