How to Calculate Statutory Holiday Pay in Ontario 2018

Calculating statutory holiday pay in Ontario for 2018 requires understanding the legal requirements and applying the correct formulas. This guide explains the process step-by-step, including how to determine the holiday pay rate, calculate the total pay, and account for overtime.

What is Statutory Holiday Pay?

Statutory holiday pay in Ontario refers to the additional compensation employees receive for working on designated holidays. In 2018, Ontario recognized the following statutory holidays:

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)
Civic Holiday (first Monday in August)
Labour Day (first Monday in September)
Thanksgiving (second Monday in October)
Christmas Day (December 25)
Boxing Day (December 26)

The Ontario Employment Standards Act requires employers to pay employees their regular hourly wage for any hours worked on a statutory holiday, plus an additional 50% premium pay.

How to Calculate Statutory Holiday Pay

To calculate statutory holiday pay, follow these steps:

Determine the employee's regular hourly wage.
Calculate the total hours worked on the holiday.
Multiply the regular hourly wage by the total hours worked to get the base pay.
Calculate the premium pay by multiplying the base pay by 50%.
Add the base pay and premium pay to get the total holiday pay.

Formula

Total Holiday Pay = (Regular Hourly Wage × Hours Worked) + (0.5 × (Regular Hourly Wage × Hours Worked))

Or simplified:

Total Holiday Pay = 1.5 × (Regular Hourly Wage × Hours Worked)

For employees who work overtime on a statutory holiday, the overtime pay is calculated separately according to the Ontario Employment Standards Act.

Example Calculation

Let's calculate the statutory holiday pay for an employee who works 8 hours on a statutory holiday.

Regular Hourly Wage	$20.00
Hours Worked	8
Base Pay	$20.00 × 8 = $160.00
Premium Pay (50%)	$160.00 × 0.5 = $80.00
Total Holiday Pay	$160.00 + $80.00 = $240.00

In this example, the employee earns $240.00 in statutory holiday pay for working 8 hours on a holiday.

FAQ

What is the difference between statutory holiday pay and regular pay?: Statutory holiday pay includes a 50% premium on top of the regular hourly wage for any hours worked on a statutory holiday. Regular pay does not include this premium.
Do I need to pay statutory holiday pay if my employee doesn't work on a holiday?: No, statutory holiday pay is only required for employees who work on a statutory holiday. If an employee is not scheduled to work on a holiday, no pay is required.
How is overtime calculated on a statutory holiday?: Overtime on a statutory holiday is calculated at 1.5 times the regular hourly wage, plus the 50% premium. For example, if the regular hourly wage is $20, overtime pay would be $30 per hour.
Are there any exceptions to statutory holiday pay requirements?: Yes, some employees may be exempt from statutory holiday pay requirements, such as agricultural workers, certain seasonal workers, and employees in the retail industry during specific periods.
What happens if I don't pay statutory holiday pay correctly?: If statutory holiday pay is not paid correctly, the employer may be subject to penalties and fines under the Ontario Employment Standards Act. It's important to follow the legal requirements to avoid legal issues.