How Stat Holiday Pay Is Calculated in Ontario
Statutory holiday pay in Ontario is a legal requirement for employers to pay their employees for designated holidays. This guide explains how the calculation works, including the formula, examples, and practical considerations.
How Stat Holiday Pay Works in Ontario
In Ontario, employers must pay their employees for statutory holidays. These holidays include New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, and Christmas Day. The calculation of statutory holiday pay depends on whether the employee is a full-time or part-time worker.
Key Points
Statutory holiday pay is calculated based on the employee's regular pay rate and the number of hours they would normally work on the holiday. Employers must pay the same rate as they would for regular hours worked.
Full-Time Employees
For full-time employees, statutory holiday pay is calculated based on their regular hourly wage multiplied by the number of hours they would normally work on the holiday. If the holiday falls on a day the employee normally works, they are entitled to pay for the full day's work.
Part-Time Employees
Part-time employees are entitled to statutory holiday pay based on their regular hourly wage multiplied by the number of hours they would normally work on the holiday. If the holiday falls on a day they normally work, they receive pay for the full day's work.
Calculation Method
The calculation of statutory holiday pay in Ontario follows these steps:
- Determine the employee's regular hourly wage.
- Identify the number of hours the employee would normally work on the holiday.
- Multiply the regular hourly wage by the number of hours to calculate the holiday pay.
Formula
Statutory Holiday Pay = Regular Hourly Wage × Number of Hours Worked on Holiday
For example, if an employee's regular hourly wage is $20 and they normally work 8 hours on a statutory holiday, their holiday pay would be $160.
Worked Examples
Example 1: Full-Time Employee
An employee works full-time and earns $25 per hour. On a statutory holiday, they normally work 8 hours. Their holiday pay would be:
$25/hour × 8 hours = $200
Example 2: Part-Time Employee
A part-time employee earns $18 per hour and normally works 4 hours on a statutory holiday. Their holiday pay would be:
$18/hour × 4 hours = $72