How to Calculate Holiday Pay Ontario 2019

Holiday Pay Basics in Ontario

In Ontario, holiday pay is a legal requirement for most employees. The Ontario Employment Standards Act (ESA) mandates that employees receive holiday pay for the holidays recognized by the province. For 2019, these holidays included Christmas Day, Boxing Day, New Year's Day, and Family Day.

Legal Requirements

Under the ESA, employers must pay holiday pay to employees who work on the recognized holidays. The amount is calculated based on the employee's regular wages and the number of hours they would normally work on that day.

Holiday Pay vs. Vacation Pay

It's important to distinguish between holiday pay and vacation pay. Holiday pay is specifically for recognized holidays, while vacation pay is for time off granted by the employer. Both are distinct from regular wages.

Calculation Method for 2019

The calculation of holiday pay in Ontario for 2019 follows these key principles:

1. Determine the employee's regular hourly wage
2. Identify the number of hours the employee would normally work on the holiday
3. Multiply the regular hourly wage by the number of hours to get the holiday pay amount

Special Considerations

For employees who work on a shift basis, the calculation should consider their regular shift hours. For part-time employees, the calculation is based on their regular part-time hours.

Employers must provide holiday pay to all employees who would normally work on the recognized holidays, regardless of whether they actually worked that day.

Step-by-Step Calculation

Follow these steps to calculate holiday pay for an employee in Ontario for 2019:

1. Gather employee information:
   • Employee's regular hourly wage
   • Number of hours normally worked on the holiday
   • Confirmation that the employee would normally work on the holiday
2. Calculate holiday pay:
   • Multiply the regular hourly wage by the number of hours
   • Round to the nearest cent if necessary
3. Issue payment:
   • Provide the calculated amount to the employee
   • Ensure payment is made before the end of the year

Worked Examples

Let's look at two examples to illustrate how holiday pay is calculated in Ontario for 2019.

Example 1: Full-time Employee

An employee works 8 hours per day, Monday through Friday, and earns $20 per hour.

Example 2: Part-time Employee

A part-time employee works 4 hours per day on Mondays and earns $15 per hour.

These examples show how the calculation varies based on an employee's regular working hours and wage rate.