Calculating Statutory Holiday Pay in Ontario

Statutory holiday pay in Ontario is a legal requirement for employers to pay employees for recognized holidays. This guide explains how to calculate holiday pay, including the different pay rates and eligibility requirements.

Overview of Statutory Holiday Pay

In Ontario, employers must pay their employees for recognized holidays. The amount of pay depends on the employee's regular pay rate and the type of holiday. There are two main types of holiday pay:

Regular holiday pay: Paid at the employee's regular hourly or salary rate.
Premium holiday pay: Paid at 1.5 times the employee's regular hourly or salary rate.

Employees are entitled to holiday pay for the following recognized holidays:

New Year's Day
Family Day
Good Friday
Victoria Day
Canada Day
Labour Day
Thanksgiving Day
Remembrance Day
Christmas Day
Boxing Day

How to Calculate Statutory Holiday Pay

The calculation of statutory holiday pay depends on whether the employee is paid hourly or on a salary basis. The general formula for calculating holiday pay is:

Holiday Pay = (Regular Pay Rate × Holiday Pay Factor) × Number of Hours Worked on Holiday

The Holiday Pay Factor is 1.0 for regular holiday pay and 1.5 for premium holiday pay.

For salaried employees, the calculation is typically based on the employee's average weekly earnings multiplied by the holiday pay factor.

Holiday Pay = (Average Weekly Earnings × Holiday Pay Factor) × Number of Weeks Worked

Employers must ensure that holiday pay is calculated accurately and paid to employees on the day of the holiday or within a reasonable time before or after the holiday.

Eligibility Requirements

To be eligible for statutory holiday pay, employees must meet certain requirements:

They must have worked for the employer for at least 6 months.
They must have worked at least 30 hours in the 6 months before the holiday.
They must be scheduled to work on the holiday.

Employees who are not eligible for statutory holiday pay may still be entitled to paid time off or other benefits as provided by their employment contract.

Worked Examples

Example 1: Hourly Employee

An hourly employee earns $20 per hour and works 8 hours on a regular holiday. The holiday pay factor is 1.0.

Holiday Pay = ($20 × 1.0) × 8 = $160

Example 2: Salaried Employee

A salaried employee earns $1,200 per week and works 5 weeks before a premium holiday. The holiday pay factor is 1.5.

Holiday Pay = ($1,200 × 1.5) × 5 = $9,000

Frequently Asked Questions

What holidays are recognized for statutory holiday pay in Ontario?

In Ontario, recognized holidays for statutory holiday pay include New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day, and Boxing Day.

How is statutory holiday pay calculated for salaried employees?

For salaried employees, statutory holiday pay is typically calculated based on the employee's average weekly earnings multiplied by the holiday pay factor (1.0 for regular holidays and 1.5 for premium holidays).

What happens if an employee is not scheduled to work on a holiday?

Employees who are not scheduled to work on a holiday are not entitled to statutory holiday pay. However, they may still be entitled to paid time off or other benefits as provided by their employment contract.

Can employers pay holiday pay in advance?

Yes, employers can pay holiday pay in advance, but it must be clearly communicated to employees and deducted from their final pay if they do not work the holiday.

What should employers do if an employee works on a holiday?

If an employee works on a holiday, they are entitled to their regular pay plus the statutory holiday pay. Employers must ensure that the employee is paid appropriately for the additional hours worked.