How to Calculate Statutory Holiday Pay in Ontario 2019

Calculating statutory holiday pay in Ontario for 2019 requires understanding the legal requirements and applying the correct formulas. This guide provides a step-by-step explanation of how to calculate holiday pay, including the formula, examples, and frequently asked questions.

What is Statutory Holiday Pay?

Statutory holiday pay is the additional compensation employees receive for working on designated holidays. In Ontario, employers must pay their employees for holidays that fall on days they would normally work.

The Ontario Employment Standards Act outlines the requirements for holiday pay. Employees are entitled to receive their regular wages for the hours they would normally work on a holiday, plus any overtime pay if applicable.

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. If the holiday falls on a day the employee does not normally work, they are not entitled to holiday pay.

For part-time employees, the calculation is based on their regular hours of work. For full-time employees, it's based on their standard full-time hours.

Note: The calculation method may vary slightly depending on the specific provisions of the Ontario Employment Standards Act and any collective agreements in place.

Formula

The basic formula for calculating statutory holiday pay is:

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

For employees who work overtime on holidays, the calculation includes overtime pay based on the applicable overtime rate.

Example Calculation

Let's consider an example to illustrate how to calculate statutory holiday pay:

Employee Details	Value
Regular Hourly Wage	$20.00
Number of Hours Worked on Holiday	8
Holiday Pay	$160.00

In this example, the employee earns $20 per hour and works 8 hours on the holiday. The holiday pay is calculated as $20 × 8 = $160.

FAQ

What is the legal requirement for holiday pay in Ontario?

Under the Ontario Employment Standards Act, employers must pay their employees for holidays that fall on days they would normally work. The pay is based on the employee's regular hourly wage and the number of hours they would normally work.

How is holiday pay calculated for part-time employees?

For part-time employees, holiday pay is calculated based on their regular hours of work. The calculation is the same as for full-time employees, using their regular hourly wage and the number of hours they would normally work on the holiday.

Are employees entitled to holiday pay if they don't normally work on holidays?

No, employees are only entitled to holiday pay if the holiday falls on a day they would normally work. If they don't normally work on holidays, they are not entitled to holiday pay.

What happens if an employee works overtime on a holiday?

If an employee works overtime on a holiday, they are entitled to both their regular holiday pay and overtime pay based on the applicable overtime rate.

Where can I find more information about holiday pay requirements in Ontario?

For more detailed information, you can refer to the Ontario Employment Standards Act and the Ontario Ministry of Labour guide on holiday pay.