Stat Holiday Pay Calculation Ontario

Calculating Statutory Holiday Pay in Ontario requires understanding the province's labor laws and applying the correct formula. This guide explains how to determine holiday pay, provides a calculation tool, and offers practical advice for employers and employees.

How to Calculate Stat Holiday Pay in Ontario

In Ontario, employers must pay employees for statutory holidays. The amount depends on whether the employee is full-time or part-time, and whether they are exempt or non-exempt.

Key Requirements

Employers must pay employees for statutory holidays even if they are not working.
The holiday pay rate is based on the employee's regular hourly wage.
For non-exempt employees, holiday pay is calculated based on their regular hours worked.
For exempt employees, holiday pay is calculated based on their annual salary.

Calculation Steps

Determine if the employee is full-time or part-time.
Identify whether the employee is exempt or non-exempt.
Calculate the holiday pay based on the appropriate formula.
Ensure the payment is made on the holiday itself or within a reasonable time frame.

Note: Ontario's statutory holidays include New Year's Day, Family Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, and Christmas Day.

Stat Holiday Pay Formula

The formula for calculating Statutory Holiday Pay in Ontario varies depending on the employee's status:

For Non-Exempt Employees

Holiday Pay = (Regular Hourly Wage × Regular Hours Worked in the Pay Period) × Holiday Pay Factor

The Holiday Pay Factor is typically 1.5 for full-time employees and 1.0 for part-time employees.

For Exempt Employees

Holiday Pay = (Annual Salary ÷ 260) × Holiday Pay Factor

The Holiday Pay Factor is typically 1.5 for full-time employees and 1.0 for part-time employees.

Use the calculator on the right to compute holiday pay for your specific situation.

Worked Example

Let's calculate the Statutory Holiday Pay for a non-exempt employee:

Given:

Regular Hourly Wage: $20/hour
Regular Hours Worked in Pay Period: 80 hours
Holiday Pay Factor: 1.5 (full-time employee)

Calculation:

Holiday Pay = ($20/hour × 80 hours) × 1.5

Holiday Pay = $1,600 × 1.5

Holiday Pay = $2,400

The employee should receive $2,400 in Statutory Holiday Pay.

FAQ

What is Statutory Holiday Pay in Ontario?: Statutory Holiday Pay is the payment employers must provide to employees for statutory holidays in Ontario. The amount depends on the employee's status and regular wage.
How is Statutory Holiday Pay calculated for non-exempt employees?: For non-exempt employees, Statutory Holiday Pay is calculated by multiplying the employee's regular hourly wage by their regular hours worked in the pay period, then multiplying by the holiday pay factor (typically 1.5 for full-time employees).
How is Statutory Holiday Pay calculated for exempt employees?: For exempt employees, Statutory Holiday Pay is calculated by dividing the employee's annual salary by 260, then multiplying by the holiday pay factor (typically 1.5 for full-time employees).
When must Statutory Holiday Pay be paid?: Statutory Holiday Pay must be paid on the holiday itself or within a reasonable time frame, typically within 30 days of the holiday.
What happens if an employer fails to pay Statutory Holiday Pay?: If an employer fails to pay Statutory Holiday Pay, the employee may be entitled to claim the unpaid amount as wages under the Employment Standards Act.