Ontario Employment Standards Act Holiday Pay Calculation
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Reviewed by Calculator Editorial Team
Understanding Ontario's Employment Standards Act holiday pay requirements is essential for employers and employees. This guide explains how to calculate holiday pay, the different rates, exemptions, and provides a practical calculator to determine your holiday pay obligations.
How to Calculate Holiday Pay
The Ontario Employment Standards Act (ESA) requires employers to pay holiday pay to eligible employees. The calculation depends on whether the employee is exempt or non-exempt, and the type of holiday being paid.
Formula for Non-Exempt Employees
Holiday pay = (Hourly wage × 1.5) × Number of hours worked on the holiday
Formula for Exempt Employees
Holiday pay = (Annual salary ÷ 260) × 1.5 × Number of hours worked on the holiday
Employers must pay holiday pay for any holiday that falls on a day the employee is scheduled to work. The calculation varies based on the employee's status and the specific holiday being paid.
Holiday Pay Rates
The Ontario ESA specifies different holiday pay rates based on the employee's status:
- Non-exempt employees receive time-and-a-half (1.5 times their regular hourly wage) for any holiday they work.
- Exempt employees receive time-and-a-half (1.5 times their daily rate) for any holiday they work. The daily rate is calculated by dividing their annual salary by 260.
- Part-time employees receive holiday pay based on their regular hourly wage or daily rate, depending on their status.
Employers must pay holiday pay for any holiday that falls on a day the employee is scheduled to work, regardless of whether the employee actually works that day.
Exemptions
Certain employees are exempt from holiday pay requirements under the Ontario ESA:
- Seasonal employees who work for less than 90 days in a 12-month period.
- Employees who work irregular hours and are not scheduled to work on the holiday.
- Employees who are on vacation or leave on the holiday.
Employers must document exemptions to avoid potential penalties for non-compliance.
Worked Example
Let's calculate holiday pay for a non-exempt employee who works 8 hours on a holiday.
Example Calculation
Hourly wage: $20/hour
Holiday pay rate: $20 × 1.5 = $30/hour
Holiday pay: $30/hour × 8 hours = $240
For an exempt employee with an annual salary of $52,000:
Example Calculation
Daily rate: $52,000 ÷ 260 = $200/day
Holiday pay rate: $200 × 1.5 = $300/day
Holiday pay: $300/day × 8 hours = $2,400
FAQ
What holidays are covered under the Ontario ESA?
The Ontario ESA covers Christmas Day, Boxing Day, New Year's Day, Family Day, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, and Remembrance Day.
Do part-time employees receive holiday pay?
Yes, part-time employees receive holiday pay based on their regular hourly wage or daily rate, depending on their status.
What happens if an employer fails to pay holiday pay?
Employers who fail to pay holiday pay may face penalties, including fines and potential legal action.
Are there any exemptions to the holiday pay requirements?
Yes, seasonal employees, employees who work irregular hours, and employees on vacation or leave on the holiday are exempt.