Vacation Pay
Calculator Canada
Find out exactly how much vacation pay you're owed in any Canadian province. Calculates vacation pay percentage, weeks entitlement, and dollar amount — including vacation pay owing on termination.
Your employment details
Vacation pay entitlements shown are statutory minimums under employment standards legislation. Your employment contract may provide more. Consult your provincial employment standards office or an employment lawyer for your specific situation. Terms →
Vacation pay is calculated as a percentage of your total vacationable earnings — not just base salary. This includes overtime pay, commissions, bonuses (non-discretionary), and most allowances. If your total compensation is $80,000 including bonuses, your 4% vacation pay is $3,200, not $2,400 on base salary alone.
When employment ends for any reason — resignation, layoff, or dismissal — your employer must pay out all accrued but unpaid vacation pay in your final pay. This includes vacation earned but not yet taken, and vacation pay for the current year up to your last day. Failure to pay out is a violation of employment standards.
Vacation time typically must be taken within 12 months of being earned (the vacation entitlement year). If you don't take your vacation time, your employer may schedule it or forfeit your time — but the vacation pay (money) never expires and must always be paid out. You cannot permanently waive vacation pay.
Vacation pay rules that surprise most employees
Vacation pay in Canada is calculated as a percentage of gross earnings, not as a separate "bonus" payment — a distinction that changes how it interacts with overtime, commissions, and bonuses in ways many employees don't expect.
4% becomes 6% after a few years, automatically
Most provinces require 4% vacation pay (two weeks) for the first several years of employment, automatically increasing to 6% (three weeks) once an employee passes a service threshold — typically 5 years, though this varies by province. This increase isn't discretionary or tied to performance; it's a legal minimum that applies regardless of what your employment contract says, and employers cannot contract out of it.
Vacation pay applies to more than your base salary
Because vacation pay is calculated as a percentage of gross wages, it should include commissions, overtime pay, and most bonuses earned during the vacationable period — not just your base salary. Sales roles with significant commission income often see this miscalculated, since some employers incorrectly apply the percentage only to base pay, shortchanging the employee on every paycheque without anyone noticing.
It never expires, even if you never take a vacation
Vacation pay (the money) and vacation time (the days off) are legally distinct. You can lose the right to carry over unused vacation days under some provincial rules, but the money owed for vacation pay never disappears and must always be paid out — either accrued on each paycheque, paid as a lump sum before vacation is taken, or paid out entirely upon termination. An employer cannot simply withhold accrued vacation pay because you didn't take time off.
Termination triggers an immediate payout
When employment ends — whether by resignation, layoff, or termination — all accrued and unused vacation pay must be paid out in the final paycheque, calculated up to the last day worked. This is one of the few employment standards obligations that has essentially no exceptions; employers cannot withhold final vacation pay for any reason, including disputes over other final pay items.
If you believe your vacation pay has been calculated incorrectly, most provinces allow you to file a complaint with the provincial employment standards branch at no cost, and they can investigate and order back payment if a violation is found.
Frequently asked questions
Does vacation pay include overtime?
Yes, in most provinces. Vacation pay is calculated on total "vacationable earnings" which includes overtime in most jurisdictions. Quebec, BC, Ontario, Alberta, and Manitoba explicitly include overtime. Saskatchewan includes overtime on vacation pay calculations. Check your province's employment standards for specifics.
When must vacation pay be paid?
Vacation pay is typically paid before the vacation begins, though some provinces allow it to be paid in each paycheque (pay-as-you-go) if agreed in writing. On termination, vacation pay must be included in the final pay within specific timeframes: 7 days in Ontario, 10 days in Alberta, 48 hours in BC.