How to Calculate Stat Holiday Pay Ontario 2018

Calculating statutory holiday pay in Ontario for 2018 requires understanding the specific regulations and applying them correctly to your employee's wages. This guide provides a step-by-step method to determine the proper holiday pay owed to employees during statutory holidays in Ontario.

What is Statutory Holiday Pay?

Statutory holiday pay refers to the additional compensation employees receive for working on designated public holidays in Ontario. These holidays are recognized by law and 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 days are entitled to receive their regular wages plus an additional amount equal to one day's pay for each holiday they work.

How to Calculate Stat Holiday Pay in Ontario

Calculating statutory holiday pay in Ontario involves several steps. Here's a detailed breakdown of the process:

Step 1: Determine the Employee's Regular Pay

First, identify the employee's regular hourly or daily wage. This is typically calculated based on their regular working hours and pay rate.

Step 2: Identify the Statutory Holiday

Verify that the day in question is indeed a statutory holiday as recognized by Ontario law.

Step 3: Calculate the Holiday Pay

The holiday pay is calculated based on the employee's regular pay for the day they worked. The formula is:

Holiday Pay = Regular Daily Pay + (Regular Daily Pay × Holiday Pay Premium)

The holiday pay premium in Ontario for 2018 was 50% of the regular daily pay.

Step 4: Apply the Calculation

Multiply the employee's regular daily pay by 1.5 to determine the total holiday pay owed.

Step 5: Verify Compliance

Ensure that the employee was actually scheduled to work on the holiday and that the holiday pay is in addition to their regular pay for that day.

Example Calculation

Let's walk through an example to illustrate how to calculate statutory holiday pay in Ontario for 2018.

Scenario

An employee works on Victoria Day (a statutory holiday) and earns $20 per hour. The employee worked 8 hours that day.

Step 1: Calculate Regular Daily Pay

Regular Daily Pay = Hourly Wage × Hours Worked = $20 × 8 = $160

Step 2: Calculate Holiday Pay

Holiday Pay = Regular Daily Pay × 1.5 = $160 × 1.5 = $240

Step 3: Total Pay for the Day

Total Pay = Regular Daily Pay + Holiday Pay = $160 + $240 = $400

In this example, the employee earns $400 for working on Victoria Day, which includes their regular pay of $160 plus the holiday pay premium of $240.

Important Notes

When calculating statutory holiday pay in Ontario, keep these important points in mind:

The holiday pay premium rate may change annually, so always verify the current rate.
Employees must be scheduled to work on the holiday to be eligible for holiday pay.
Holiday pay is in addition to the employee's regular pay for that day.
Some employees may be exempt from holiday pay under certain circumstances.

Frequently Asked Questions

What is the current holiday pay premium rate in Ontario?

As of 2018, the holiday pay premium rate in Ontario was 50% of the employee's regular daily pay.

Do all employees receive statutory holiday pay?

No, some employees may be exempt from statutory holiday pay under certain circumstances, such as seasonal workers or employees who are not scheduled to work on the holiday.

How is statutory holiday pay calculated for part-time employees?

The calculation is the same for part-time employees. The holiday pay is based on their regular daily pay, which is determined by their regular hours and pay rate.

What happens if an employee works on a holiday but is not paid the correct amount?

If an employee is not paid the correct statutory holiday pay, they may be entitled to additional compensation or back pay. It's important to ensure compliance with Ontario's labor laws.