How to Calculate Stat Holiday Pay Ontario

Statutory holiday pay in Ontario is a legal requirement for most employers to pay their employees for designated holidays. This guide explains how to calculate statutory holiday pay, including the rates, exemptions, and compliance requirements.

What is Statutory Holiday Pay in Ontario?

Under the Ontario Employment Standards Act, employers must pay their employees for certain statutory holidays. These holidays include:

New Year's Day (January 1)
Family Day (third Monday in February)
Good Friday (Friday before Easter Sunday)
Victoria Day (Monday on or before May 24)
Canada Day (July 1)
Labour Day (first Monday in September)
Thanksgiving Day (second Monday in October)
Christmas Day (December 25)
Boxing Day (December 26)

Employers must pay employees their regular wages for the hours they would normally work on these holidays. If an employee does not work on a statutory holiday, they are still entitled to the pay.

How to Calculate Statutory Holiday Pay

Calculating statutory holiday pay involves determining the employee's regular hourly wage and multiplying it by the number of hours they would normally work on the holiday.

Formula

Statutory Holiday Pay = Regular Hourly Wage × Number of Hours Worked on Holiday

Step-by-Step Calculation

Determine the employee's regular hourly wage.
Identify the number of hours the employee would normally work on the statutory holiday.
Multiply the regular hourly wage by the number of hours to calculate the statutory holiday pay.

Example Calculation

Suppose an employee has a regular hourly wage of $20 and works 8 hours on a statutory holiday. The statutory holiday pay would be:

Statutory Holiday Pay = $20 × 8 hours = $160

If the employee does not work on the holiday but is entitled to the pay, they would still receive $160.

Exemptions and Exclusions

Not all employees are entitled to statutory holiday pay. The following employees are exempt:

Employees who work fewer than 30 hours per week
Employees who are not regularly scheduled to work on the holiday
Employees who are on vacation or leave during the holiday
Employees who are not paid for the holiday

Employers must ensure they comply with these exemptions to avoid legal issues.

Record Keeping Requirements

Employers must keep accurate records of statutory holiday pay to demonstrate compliance. This includes:

Employee schedules for statutory holidays
Regular hourly wages for each employee
Proof of payment to employees
Documentation of exemptions and exclusions

These records should be kept for at least four years to comply with Ontario's record-keeping laws.

Frequently Asked Questions

What is the difference between statutory holiday pay and vacation pay?

Statutory holiday pay is paid to employees on designated holidays, while vacation pay is paid to employees who take vacation time. The two are distinct and have different calculation methods.

Do part-time employees receive statutory holiday pay?

Yes, part-time employees who work at least 30 hours per week are entitled to statutory holiday pay.

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

Employers who fail to pay statutory holiday pay can face legal penalties, including fines and back pay for employees.

Are there any exceptions to statutory holiday pay?

Yes, employees who work fewer than 30 hours per week, are not regularly scheduled to work on the holiday, or are on leave are exempt from statutory holiday pay.