How to use the vacation pay calculator
- 1 Enter your gross wages for the year or period.
- 2 Choose your vacation pay rate: 4%, 6% or 8%.
- 3 Optionally enter the number of pay periods to see vacation pay on each cheque.
- 4 Read the vacation pay owed.
Worked example
$52,000 of gross wages at 4%. Vacation pay is $52,000 × 4% = $2,080. If it is paid on each of 26 biweekly cheques, that is $80 per pay. After five years with the same Ontario employer, the 6% rate gives $3,120.
Vacation pay rights
- Provinces differ: most start at 4% (two weeks) and rise to 6% (three weeks) after a set number of years, five in Ontario and for federally regulated jobs; Saskatchewan starts at three weeks.
- On leaving: any vacation pay owed must be paid when your job ends.
- On each cheque: many hourly and part-time workers get vacation pay added to every pay instead of paid time off; it should show on the pay stub.
- Statutory holidays are separate from vacation pay.
See public holiday pay in Ontario with the Stat Holiday Pay Calculator, and termination entitlements with the Severance Pay Calculator.
Features
Common rates
4%, 6% and 8%, matching two, three and four weeks of vacation.
Per-cheque amount
See vacation pay if it is added to every pay, as for many hourly and part-time workers.
Simple
Works for any province once you know the rate that applies.
When to use it
Hourly workers
Check the 4% added to each pay cheque. Public holiday in Ontario? Use the Stat Holiday Pay Calculator.
Leaving a job
Work out vacation pay owed on your final pay. Leaving? Check the Severance Pay Calculator.
Employers
Calculate vacation pay for payroll. Convert your rate with the Hourly to Salary Calculator.
Long service
See the increase when you move from 4% to 6%. See net pay with the Take-Home Pay Calculator.
Related Pay and Salary tasks
Frequently asked questions
How is vacation pay calculated?
Multiply your vacationable gross wages by the rate. At 4%, $52,000 of wages gives $2,080.
When do I get 6%?
In Ontario, after 5 years with the same employer. Federally regulated employees get 6% after 5 years and 8% after 10 years.
Is vacation pay the same in every province?
No. Saskatchewan starts at 3 weeks (about 5.77%), and other provinces have their own service thresholds. Check your province's employment standards.
Is vacation pay taxable?
Yes. It is employment income and income tax, CPP and EI are deducted.
What wages count?
Usually regular wages, overtime and commissions. Some payments, such as certain discretionary bonuses or expense allowances, may be excluded.
Can it be paid on every cheque?
In many provinces it can, if the employee agrees and it is shown on the pay stub.
What if I leave before taking my vacation?
Your employer must pay out any vacation pay you have earned but not received, usually on your final pay cheque.
Is vacation time the same as vacation pay?
No. Vacation time is the paid time off you are entitled to, while vacation pay is the money. Some workers receive the pay on each cheque and take unpaid time off later.
Do part-time workers get vacation pay?
Yes. Part-time and casual employees earn vacation pay as a percentage of their wages, just like full-time staff.
Do statutory holidays count?
Public holiday pay is separate from vacation pay. It is calculated under its own rules, which differ by province.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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