Vacation pay is a legal entitlement in every Canadian province and territory — but the minimums vary, and many employees don’t know exactly what they’re owed. Here’s a province-by-province breakdown.
Federal Minimums (Canada Labour Code)
The Canada Labour Code sets the floor for federally regulated employees (banks, airlines, telecommunications, interprovincial transport, and federal government):
| Years of Service | Vacation Time | Vacation Pay |
|---|---|---|
| Under 1 year | Prorated | 4% of wages |
| 1–5 years | 2 weeks | 4% of wages |
| 5–10 years | 3 weeks | 6% of wages |
| 10+ years | 4 weeks | 8% of wages |
Provincially regulated employees (the vast majority of Canadian workers) fall under their province’s Employment Standards Act.
Vacation Pay by Province (2025)
| Province | Minimum Vacation Time | Vacation Pay % | Increases After |
|---|---|---|---|
| Ontario | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| British Columbia | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Alberta | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Quebec | 1 week (Year 1), 2 weeks | 4% | 3 weeks / 6% after 3 years |
| Manitoba | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Saskatchewan | 3 weeks | 3/52 of wages | 4 weeks after 10 years |
| Nova Scotia | 2 weeks | 4% | 3 weeks / 6% after 8 years |
| New Brunswick | 2 weeks | 4% | 3 weeks / 6% after 8 years |
| Newfoundland & Labrador | 2 weeks | 4% | 3 weeks / 6% after 15 years |
| PEI | 2 weeks | 4% | 3 weeks / 6% after 8 years |
| Northwest Territories / Nunavut | 2 weeks | 4% | 3 weeks / 6% after 5 years |
| Yukon | 2 weeks | 4% | 3 weeks / 6% after 1 year |
Quebec is notably more generous: employees earn 3 weeks of vacation after just 3 years.
How Vacation Pay Is Calculated
Vacation pay is calculated as a percentage of your total insurable earnings for the year — not just your base salary. This typically includes:
- Regular wages
- Overtime pay
- Commissions
- Paid public holidays (in some provinces)
Formula: Vacation pay = Total wages × vacation pay percentage
Example: An Ontario employee earns $75,000 in a year. After 5 years, they’re entitled to 6%:
- Vacation pay = $75,000 × 6% = $4,500
This is equivalent to 3 weeks of full pay.
When Must Vacation Pay Be Paid?
The timing of vacation pay depends on your province and your employment situation:
During Vacation
The most common approach: your regular wages continue while you take your vacation, effectively serving as your vacation pay.
On Every Paycheque
Some employers, particularly for employees with irregular hours, include vacation pay on each paycheque (e.g., “4% vacation pay included”). This is permitted in most provinces but must be clearly identified on your pay stub.
At Time of Termination
Regardless of how vacation pay has been handled during employment, all unpaid vacation pay is owed upon termination or resignation. Your employer must include it in your final payment.
What Your Employer Cannot Do
- Deny you the time off without your consent (you are entitled to time, not just the pay)
- Carry over vacation indefinitely without paying it out (rules vary; some provinces limit rollovers)
- Forfeit unused vacation when you quit or are terminated
- Replace vacation time with money without your written agreement (in provinces where the law requires time off)
If Your Employer Isn’t Paying Vacation Pay
If your employer is withholding vacation pay or refusing to grant vacation time:
- Document the shortfall — calculate what you are owed
- Speak with your employer or HR in writing
- File a complaint with your provincial employment standards office:
- Ontario: Ontario Ministry of Labour
- BC: BC Employment Standards Branch
- Other provinces have equivalent bodies
Related Reading
- My Employer Owes Me Vacation Pay — What Do I Do? — Steps to recover unpaid vacation pay
- Overtime Pay Rules in Canada — Province-by-province overtime thresholds
- Notice Period Guide — Canada — What your employer owes you when terminated
- Wrongful Dismissal Guide — Canada — Your rights if improperly dismissed