Ontario Holiday Pay Calculation Formula
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Reviewed by Calculator Editorial Team
Ontario holiday pay is a legal requirement for most employees. This guide explains how to calculate holiday pay in Ontario, including the formula, rates, and entitlements. Use our calculator to determine your holiday pay amount based on your regular pay and hours worked.
How to Calculate Ontario Holiday Pay
Calculating holiday pay in Ontario involves determining your regular pay rate and multiplying it by the number of hours you would have worked during the holiday period. Here's a step-by-step guide:
- Determine your regular pay rate: This is your hourly wage or the hourly equivalent of your salary.
- Identify the holiday period: Ontario recognizes several holidays, including New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving, and Christmas Day.
- Calculate the number of hours: Multiply your regular hours by the number of days in the holiday period.
- Multiply by your pay rate: Multiply the number of hours by your regular pay rate to get the holiday pay amount.
Note: Some employees may be entitled to additional pay for holidays they work, depending on their employment contract and collective agreement.
Ontario Holiday Pay Formula
The basic formula for calculating holiday pay in Ontario is:
Where:
- Regular Pay Rate is your hourly wage or the hourly equivalent of your salary.
- Number of Hours is the total number of hours you would have worked during the holiday period.
For salaried employees, the regular pay rate is calculated by dividing your annual salary by the number of hours you would have worked in a year (typically 2,080 hours for full-time employees).
Ontario Holiday Pay Rates
Ontario law requires that employees receive holiday pay at the same rate as their regular pay. This includes:
- Hourly employees: Paid at their regular hourly rate
- Salaried employees: Paid at their regular hourly equivalent rate
- Part-time employees: Paid at their regular hourly rate for the hours they would have worked
Employees who work on a holiday are entitled to receive their regular pay for the hours they would have worked, plus any overtime pay they would have earned.
Holiday Pay Entitlements in Ontario
In Ontario, employees are entitled to holiday pay for the following holidays:
- New Year's Day
- Family Day (third Monday in February)
- Good Friday
- Victoria Day (Monday before May 25)
- Canada Day (July 1)
- Labour Day (first Monday in September)
- Thanksgiving (second Monday in October)
- Christmas Day (December 25)
- Boxing Day (December 26)
Employees who work on a holiday are entitled to receive their regular pay for the hours they would have worked, plus any overtime pay they would have earned.
Examples of Holiday Pay Calculations
Let's look at some examples to illustrate how holiday pay is calculated in Ontario.
Example 1: Hourly Employee
John is an hourly employee who earns $20 per hour. He works 8 hours per day. On Victoria Day (a holiday), he would have worked 8 hours. His holiday pay is:
Example 2: Salaried Employee
Sarah is a salaried employee who earns $50,000 per year. She works 40 hours per week. Her regular hourly rate is:
On Christmas Day (a holiday), she would have worked 8 hours. Her holiday pay is:
Example 3: Part-Time Employee
Mike is a part-time employee who earns $15 per hour. He works 20 hours per week. On Labour Day (a holiday), he would have worked 8 hours. His holiday pay is: