How Do You Calculate Statutory Holiday Pay in Ontario 2019

Calculating statutory holiday pay in Ontario requires understanding the specific rules and regulations that apply to employees in 2019. This guide provides a clear explanation of how to determine holiday pay, including the formula, examples, and important considerations.

How to Calculate Statutory Holiday Pay in Ontario 2019

In Ontario, employers are required to pay employees for statutory holidays. The calculation involves determining the employee's regular pay rate and applying it to the holiday pay period. Here's a step-by-step guide to calculating statutory holiday pay in 2019:

Step 1: Determine the Employee's Regular Pay Rate

The first step is to calculate the employee's regular hourly or daily pay rate. This is typically based on their regular wages before any overtime or bonuses. For hourly employees, this is straightforward. For salaried employees, it's calculated by dividing their annual salary by the number of hours or days they work in a year.

Step 2: Identify the Holiday Pay Period

Statutory holidays in Ontario are fixed dates each year. The main holidays are New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, and Christmas Day. The holiday pay period is typically the same as the regular pay period, but it can vary depending on the employee's schedule.

Step 3: Calculate the Holiday Pay

Once you have the employee's regular pay rate and the holiday pay period, you can calculate the holiday pay using the formula provided in the next section. The result is the amount the employer must pay the employee for the holiday.

Note: The calculation of statutory holiday pay in Ontario is subject to change. Always refer to the most recent regulations and guidelines from the Ontario government for the most accurate information.

The Formula for Holiday Pay Calculation

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

Holiday Pay = Regular Pay Rate × Holiday Pay Period

Where:

Regular Pay Rate is the employee's regular hourly or daily pay rate.
Holiday Pay Period is the number of hours or days the employee is scheduled to work during the holiday.

For salaried employees, the formula can be adjusted to account for the annual salary and the number of hours or days worked in a year.

Worked Examples

Let's look at a couple of examples to illustrate how to calculate statutory holiday pay in Ontario.

Example 1: Hourly Employee

An hourly employee earns $15 per hour and is scheduled to work 8 hours on Christmas Day. Calculate their statutory holiday pay.

Holiday Pay = $15/hour × 8 hours = $120

The employer must pay the employee $120 for Christmas Day.

Example 2: Salaried Employee

A salaried employee earns $50,000 per year and works 2,080 hours in a year. They are scheduled to work 8 hours on Victoria Day. Calculate their statutory holiday pay.

Regular Pay Rate = $50,000 / 2,080 hours ≈ $24.04/hour

Holiday Pay = $24.04/hour × 8 hours ≈ $192.32

The employer must pay the employee approximately $192.32 for Victoria Day.

Frequently Asked Questions

What is the difference between statutory and non-statutory holidays?

Statutory holidays are legal holidays that employers must pay employees for, even if they are not scheduled to work. Non-statutory holidays are company-specific holidays that may or may not be paid.

Are employers required to pay employees for all statutory holidays?

Yes, employers in Ontario are required to pay employees for all statutory holidays, regardless of whether the employee is scheduled to work or not.

What happens if an employer does not pay statutory holiday pay?

If an employer fails to pay statutory holiday pay, the employee may be entitled to file a complaint with the Ministry of Labour or take legal action to recover the unpaid wages.

Can employees negotiate different holiday pay rates?

Employees can negotiate different holiday pay rates with their employers, but the minimum requirement is the statutory holiday pay as outlined by the Ontario government.