Formula for Calculating Statutory Holiday Pay Ontario

How to Calculate Statutory Holiday Pay in Ontario

Statutory holiday pay in Ontario is calculated based on the employee's regular pay rate and the number of hours worked during the pay period. The Ontario Employment Standards Act (ESA) outlines the requirements for holiday pay, which must be paid to eligible employees on recognized holidays.

To calculate statutory holiday pay, you need to know the employee's regular pay rate, the number of hours worked during the pay period, and whether the employee is eligible for overtime pay. The holiday pay factor is applied to the regular pay rate to determine the amount of holiday pay owed.

The Formula

The formula for calculating statutory holiday pay in Ontario is as follows:

The holiday pay factor is determined by the number of hours worked during the pay period and whether the employee is eligible for overtime pay. The holiday pay factor is calculated as follows:

• If the employee worked 40 hours or less in the pay period, the holiday pay factor is 1.5.
• If the employee worked more than 40 hours in the pay period, the holiday pay factor is 1.5 for the first 40 hours and 2.0 for any hours worked beyond 40.

For example, if an employee worked 45 hours in a pay period and is eligible for overtime pay, the holiday pay factor would be calculated as follows:

This means the employee is entitled to 70% of their regular pay rate for the holiday.

Worked Example

Let's look at a worked example to illustrate how to calculate statutory holiday pay in Ontario.

Suppose an employee has a regular pay rate of $20 per hour and worked 45 hours in a pay period. The employee is eligible for overtime pay, so the holiday pay factor is calculated as follows:

To calculate the holiday pay, multiply the regular pay rate by the holiday pay factor:

Therefore, the employee is entitled to $1,400 in statutory holiday pay.

Eligibility Requirements

To be eligible for statutory holiday pay in Ontario, an employee must meet the following requirements:

• Be employed by an employer who is subject to the Ontario Employment Standards Act (ESA).
• Have worked for the employer for at least 12 months.
• Have worked at least 40 hours in the pay period immediately preceding the holiday.
• Be paid at least the minimum wage for the province of Ontario.

Employees who are exempt from the ESA, such as professional athletes, may not be eligible for statutory holiday pay.

Payment Methods

Statutory holiday pay can be paid to employees in one of the following ways:

• Cash payment: Employers can pay employees in cash for statutory holiday pay.
• Cheque: Employers can issue a cheque to employees for statutory holiday pay.
• Direct deposit: Employers can deposit statutory holiday pay directly into the employee's bank account.
• Voucher: Employers can issue a voucher to employees for statutory holiday pay.

Employers must provide employees with a written statement of the amount of statutory holiday pay owed and the method of payment.