How to Calculate Statutory Holiday Pay in Ontario

Calculating statutory holiday pay in Ontario 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 is the additional compensation employees receive for working on designated holidays. In Ontario, employers must pay employees their regular wages for the hours they would normally work on a holiday, plus any overtime pay if applicable.

The Ontario Employment Standards Act (ESA) outlines the requirements for holiday pay. Employees are entitled to holiday pay if they are scheduled to work on a holiday and their employer has a reasonable expectation that they will work on that day.

Note: Employers must provide employees with at least 24 hours' notice of a holiday work schedule. If an employee is required to work on a holiday, they are entitled to holiday pay.

How to Calculate Statutory Holiday Pay

Calculating statutory holiday pay involves several steps. First, determine the employee's regular hourly wage. Then, calculate the total hours the employee would normally work on the holiday. Finally, multiply the regular wage by the hours worked to determine the holiday pay.

Step 1: Determine Regular Hourly Wage

Find the employee's regular hourly wage by dividing their annual salary by the number of hours they work in a year. For example, if an employee earns $40,000 per year and works 2,080 hours annually, their regular hourly wage is $19.23.

Regular Hourly Wage = Annual Salary / Annual Hours Worked

Step 2: Calculate Holiday Hours

Determine the number of hours the employee would normally work on the holiday. This is typically the same as their regular workday hours. For example, if an employee works 8 hours a day, they would normally work 8 hours on a holiday.

Step 3: Calculate Holiday Pay

Multiply the regular hourly wage by the number of holiday hours to determine the holiday pay. For example, if the regular hourly wage is $19.23 and the employee works 8 hours on the holiday, the holiday pay is $153.84.

Holiday Pay = Regular Hourly Wage × Holiday Hours

Step 4: Account for Overtime

If the employee works more than their regular hours on the holiday, they are entitled to overtime pay. Overtime pay is calculated at 1.5 times the regular hourly wage. For example, if an employee works 12 hours on a holiday, the first 8 hours are paid at the regular rate, and the additional 4 hours are paid at 1.5 times the regular rate.

Overtime Pay = (Regular Hourly Wage × 1.5) × Overtime Hours

Holiday Pay Rates in Ontario

The holiday pay rate in Ontario is based on the employee's regular hourly wage. Employers must pay employees their regular wages for the hours they would normally work on a holiday, plus any overtime pay if applicable.

Holiday	Date	Pay Requirement
New Year's Day	January 1	Regular pay for hours worked
Family Day	Third Monday in February	Regular pay for hours worked
Good Friday	Friday before Easter Sunday	Regular pay for hours worked
Victoria Day	Monday before May 25	Regular pay for hours worked
Canada Day	July 1	Regular pay for hours worked
Labour Day	First Monday in September	Regular pay for hours worked
Thanksgiving Day	Second Monday in October	Regular pay for hours worked
Remembrance Day	November 11	Regular pay for hours worked
Christmas Day	December 25	Regular pay for hours worked
Boxing Day	December 26	Regular pay for hours worked

Examples of Holiday Pay Calculations

Here are two examples of how to calculate statutory holiday pay in Ontario.

Example 1: Regular Holiday Hours

An employee earns $40,000 per year and works 2,080 hours annually. They are scheduled to work 8 hours on a holiday.

Calculate the regular hourly wage: $40,000 / 2,080 hours = $19.23/hour
Determine the holiday hours: 8 hours
Calculate the holiday pay: $19.23 × 8 = $153.84

The employee is entitled to $153.84 in holiday pay.

Example 2: Holiday Hours with Overtime

An employee earns $45,000 per year and works 2,080 hours annually. They are scheduled to work 12 hours on a holiday.

Calculate the regular hourly wage: $45,000 / 2,080 hours = $21.63/hour
Determine the holiday hours: 12 hours (8 regular + 4 overtime)
Calculate the regular holiday pay: $21.63 × 8 = $173.04
Calculate the overtime pay: ($21.63 × 1.5) × 4 = $130.72
Total holiday pay: $173.04 + $130.72 = $303.76

The employee is entitled to $303.76 in holiday pay.

Frequently Asked Questions

What is the difference between statutory holiday pay and regular pay?: Statutory holiday pay is additional compensation for working on a designated holiday. It is calculated based on the employee's regular hourly wage and the hours they would normally work on the holiday.
Do I have to pay holiday pay if I don't want to work on a holiday?: No, you are not required to pay holiday pay if you are not scheduled to work on a holiday. Holiday pay is only required if you have a reasonable expectation that the employee will work on the holiday.
What happens if an employee refuses to work on a holiday?: If an employee refuses to work on a holiday, you are not required to pay them holiday pay. However, you must provide them with at least 24 hours' notice of the holiday work schedule.
Can I pay holiday pay in lieu of time off?: No, you cannot pay holiday pay in lieu of time off. Holiday pay must be paid in addition to the employee's regular wages for the hours they would normally work on the holiday.