An Ontario employee with less than five years of service who earned $60,000 in the vacation year is owed at least $2,400 in vacation pay, which is 4% of wages. With five years or more, the minimum is 6%, or $3,600. Enter your wages above to see your own figure.
The Ontario minimums
Most employees earn two weeks of vacation time after every 12 months of work, plus at least 4% of wages as vacation pay. After five years, the time rises to three weeks and the pay to 6%. Employers can give more, and many do.
What counts as wages
Use gross wages earned in the vacation year, before deductions, and leave out the vacation pay itself. Overtime, commission and bonuses count. Expense refunds and severance do not. A pay stub or your T4 shows the amounts.
Paid with each cheque or in a lump
Vacation pay can arrive as a lump sum when you take time off, or be added to each paycheque if you agree in writing. The last field shows the amount per pay period. On $60,000 paid bi-weekly it is $92.31 a cheque.
Vacation pay per week
Divide the pay by the weeks of vacation for a rough weekly figure: $1,200 a week for two weeks. If your regular pay is higher, your employer may pay your normal wages during the time off and count the difference against the vacation pay.
Tax on vacation pay
It’s income, so tax, CPP and EI apply. As a lump sum it can look smaller than expected on a pay stub. The payroll deductions calculator shows what comes off any amount.
The difference between 4% and 6%
On $60,000 of wages, the gap is $1,200. That extra amount comes with a third week of vacation. Many employers grant three weeks earlier than the law requires. If yours does, enter the higher percentage in the calculator to match your pay.
Entitlement year and taking your time
Time and pay are earned over a 12-month period that starts on your hire date, or on a date your employer sets. You must be allowed to take the time within ten months after each period ends. Ask which date your employer uses, and note it.
Employers can decide when you go, but they must let you go. You can ask to split the time into blocks of at least one week. Unpaid time in place of vacation is not allowed. Keep a note of the time taken and the pay received, and compare it with the calculator.
When you leave a job
An employer must pay any vacation pay earned but not received when employment ends. It is also owed on termination pay, but not on severance pay. Ask for a written statement of what is owed.
Where to go next
See the pay for public holidays in the holiday pay calculator. Check your rights at the end of a job with the severance pay calculator. To turn wages into a yearly figure, use the hourly to salary calculator.
Frequently asked questions
How much vacation pay am I owed in Ontario?
At least 4% of wages, or 6% after five years with the same employer.
How many weeks of vacation do I get?
Two weeks in the first five years and three weeks after that.
Does vacation pay include overtime and bonuses?
Overtime, commission and bonuses count as wages. Severance and expense refunds do not.
Can vacation pay be paid with each cheque?
Yes, if you agree in writing.
Is vacation pay taxed?
Yes. Income tax, CPP and EI apply.
What if I quit before taking my vacation?
Your employer must pay the vacation pay you have earned.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.