How to Calculate Stat Holiday Pay in Ontario
Statutory holiday pay in Ontario is a legal requirement for employers to pay their employees for recognized holidays. This guide explains how to calculate the proper holiday pay, including the formula, assumptions, and practical examples.
What is Statutory Holiday Pay?
Statutory holiday pay refers to the payment that employers must provide to their employees for recognized holidays in Ontario. These holidays include:
- New Year's Day
- Family Day (third Monday in February)
- Good Friday (Friday before Easter Sunday)
- Victoria Day (Monday before May 25)
- Canada Day (July 1)
- Labour Day (first Monday in September)
- Thanksgiving Day (second Monday in October)
- Remembrance Day (November 11)
- Christmas Day (December 25)
- Boxing Day (December 26)
Employees who work on these holidays are entitled to receive their regular pay plus an additional amount equal to one day's pay for each holiday they work.
How to Calculate Stat Holiday Pay
The calculation for statutory holiday pay in Ontario is based on the employee's regular hourly wage and the number of hours they worked on the holiday. Here's the formula:
Statutory Holiday Pay = (Regular Hourly Wage × Hours Worked on Holiday) + (Regular Hourly Wage × 1)
This formula accounts for both the regular pay for the hours worked on the holiday and the additional day's pay that employees are entitled to.
Steps to Calculate
- Determine the employee's regular hourly wage.
- Calculate the number of hours the employee worked on the holiday.
- Multiply the regular hourly wage by the hours worked on the holiday.
- Add one day's pay (regular hourly wage × 8 hours) to the result from step 3.
Note: If the employee is entitled to overtime pay for hours worked beyond their regular schedule, those additional payments must also be included in the holiday pay calculation.
Example Calculation
Let's walk through an example to illustrate how to calculate statutory holiday pay.
Scenario
An employee works 5 hours on Victoria Day. Their regular hourly wage is $25.00.
Calculation
- Regular pay for hours worked: $25.00 × 5 hours = $125.00
- Additional day's pay: $25.00 × 8 hours = $200.00
- Total statutory holiday pay: $125.00 + $200.00 = $325.00
The employee is entitled to receive $325.00 in statutory holiday pay for working on Victoria Day.
Frequently Asked Questions
Do all employees in Ontario receive statutory holiday pay?
Yes, all employees in Ontario who work on a recognized holiday are entitled to receive statutory holiday pay, which includes their regular pay plus an additional day's pay.
What happens if an employee doesn't work a holiday but is entitled to it?
Employees who are entitled to a holiday but do not work on it are still entitled to receive the holiday pay, provided they have been scheduled to work on that day.
Are there any exceptions to statutory holiday pay?
Yes, there are exceptions for employees who are on vacation, sick leave, or who have given notice of termination. In these cases, the employer may be exempt from paying the holiday pay.
How is statutory holiday pay calculated for part-time employees?
The calculation is the same for part-time employees. The employer must pay the part-time employee their regular hourly wage for the hours worked on the holiday plus an additional day's pay based on their regular hourly wage.