How to Calculate Statutory Holiday Pay Ontario 2018

Calculating statutory holiday pay in Ontario for 2018 requires understanding the specific rules and regulations that apply to employees. This guide provides a step-by-step explanation of how to calculate statutory holiday pay, including the relevant formulas and examples to help you determine the correct amount owed to your employees.

What is Statutory Holiday Pay?

Statutory holiday pay refers to the additional compensation that employees in Ontario are entitled to receive on designated public holidays. These holidays are recognized by law and include dates such as New Year's Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving, and Christmas Day.

Under Ontario's Employment Standards Act, employers are required to pay employees their regular wages for any hours they would normally work on a statutory holiday, even if the business is closed. This includes both hourly and salaried employees.

How to Calculate Statutory Holiday Pay

Calculating statutory holiday pay involves determining the employee's regular wages and applying them to the hours they would normally work on the holiday. Here's a step-by-step breakdown of the process:

Step 1: Determine the Employee's Regular Wages

For hourly employees, this is simply their hourly wage. For salaried employees, their regular wages are calculated by dividing their annual salary by the number of weeks in the year (52) and then by the number of hours they typically work in a week.

For Hourly Employees:

Regular Wages = Hourly Wage

For Salaried Employees:

Regular Wages = (Annual Salary / 52 weeks) / Hours Worked Per Week

Step 2: Identify the Hours Worked on the Holiday

Determine the number of hours the employee would normally work on the statutory holiday. This is typically based on their regular work schedule.

Step 3: Calculate the Holiday Pay

Multiply the employee's regular wages by the number of hours they would normally work on the holiday.

Statutory Holiday Pay = Regular Wages × Hours Worked on Holiday

For example, if an employee earns $20 per hour and works 8 hours on a statutory holiday, their holiday pay would be $160.

Note: The calculation for salaried employees is more complex because it involves dividing their annual salary by the number of weeks and hours worked. This ensures that the holiday pay is proportional to their regular earnings.

Example Calculation

Let's walk through a practical example to illustrate how to calculate statutory holiday pay.

Scenario: Hourly Employee

An hourly employee works 8 hours per day, 5 days a week, and earns $20 per hour.

Step	Details	Calculation
1	Determine regular wages	$20/hour
2	Identify hours worked on holiday	8 hours
3	Calculate holiday pay	$20 × 8 = $160

Scenario: Salaried Employee

A salaried employee earns $52,000 per year and works 40 hours per week.

Step	Details	Calculation
1	Calculate weekly salary	$52,000 / 52 = $1,000/week
2	Determine hourly rate	$1,000 / 40 hours = $25/hour
3	Identify hours worked on holiday	8 hours
4	Calculate holiday pay	$25 × 8 = $200

Important Considerations

When calculating statutory holiday pay, there are several important factors to consider:

1. Overtime Pay

If an employee would normally work overtime on a statutory holiday, the overtime pay must also be included in the calculation. This typically involves multiplying the employee's overtime rate by the number of overtime hours worked.

2. Public Holidays

Ensure that you are aware of all the public holidays recognized in Ontario. These include New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving, and Christmas Day.

3. Part-Time Employees

For part-time employees, the calculation is the same as for full-time employees, but the number of hours worked on the holiday will be less.

4. Employer Compliance

It is important for employers to ensure that they are in compliance with all relevant laws and regulations regarding statutory holiday pay. Failure to do so can result in penalties and legal action.

FAQ

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

Statutory holiday pay is the additional compensation that employees receive for working on a public holiday, while vacation pay is the compensation that employees receive for taking time off from work.

Do employers have to pay statutory holiday pay to all employees?

Yes, employers are required to pay statutory holiday pay to all employees who would normally work on a public holiday, regardless of whether the business is open or closed.

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

If an employer fails to pay statutory holiday pay, the employee may be entitled to claim the unpaid wages as damages in a lawsuit. Additionally, the employer may be subject to penalties and fines.

Are there any exceptions to paying statutory holiday pay?

There are limited exceptions to paying statutory holiday pay, such as if the employee voluntarily chooses not to work on the holiday or if the business is closed for a legitimate reason.