CPA-Built Calculator

Vacation Pay Calculator for Canada

The statutory minimum for every province and territory, including the rules generic calculators miss: Saskatchewan's 5.77%, Quebec's 3-year threshold, and BC's vacation pay on vacation pay.

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CPA-verified rates, Sebastien Prost, CPA
Every province and territory, plus federal
Updated August 2026

Your numbers

Salary entered as

The formula: vacation pay = gross vacationable wages × your jurisdiction's rate. The result updates as you type, and every rate and threshold comes from the jurisdiction's employment standards legislation, verified against official sources in August 2026.

Minimum vacation pay

$2,600

per vacation year, before deductions

4% rate2 weeks off
Vacationable wages
$65,000

Rises to 6% and 3 weeks after 5 years, 2 more years for this employee.

Statutory minimums only. Employment contracts can promise more, never less. This is general information, not legal or payroll advice.

Tired of tracking this by hand? Wagepoint applies your province's rate, bumps it at the anniversary, and books the accrual on every pay run.

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How this works

Built the way a CPA checks payroll

Every figure traces to a provincial employment standards rule, not a rounded national average.

The calculator multiplies gross vacationable wages by your jurisdiction's statutory rate, choosing the tier your completed years of service have reached. It carries the details that separate correct payroll from almost-correct payroll: Saskatchewan's fractional 5.77% and 7.69% rates, Quebec's three-year threshold, the federal 8% tier at ten years, Yukon's flat 4%, and the BC definition of wages that makes vacation pay itself vacationable.

The full write-up behind these numbers, with worked examples for BC, Ontario, Alberta and Quebec and the termination payout math, is in our guide on how to calculate vacation pay in Canada. Rates verified August 2026 by Sebastien Prost, CPA.

Reference

Every jurisdiction at a glance

The same data the calculator runs on.

JurisdictionStarting minimumIncreasesWorth knowing
British Columbia2 weeks (4%)3 weeks (6%) after 5 yearsBC counts vacation pay you already paid as vacationable wages, so vacation pay compounds.
Alberta2 weeks (4%)3 weeks (6%) after 5 yearsAlberta uses a narrower wage base than BC or Ontario: overtime and general holiday pay are excluded.
Saskatchewan3 weeks (5.77%)4 weeks (7.69%) after 10 yearsSaskatchewan starts at 3 weeks (5.77%), the highest minimum in Canada. A 4% payroll default underpays from day one.
Manitoba2 weeks (4%)3 weeks (6%) after 5 years
Ontario2 weeks (4%)3 weeks (6%) after 5 years
Quebec2 weeks (4%)3 weeks (6%) after 3 yearsQuebec bumps to 3 weeks after 3 years, not 5. First-year employees earn 1 day per completed month.
New Brunswick2 weeks (4%)3 weeks (6%) after 8 yearsThe Act words the threshold as "more than eight years" of service.
Nova Scotia2 weeks (4%)2 weeks (6%) after 7 years; 3 weeks (6%) after 8 yearsThe 6% rate starts a year before the third week: wages from the 8th year of service (after 7 completed years) accrue at 6%, and the 3-week vacation follows the 8th year.
Prince Edward Island2 weeks (4%)3 weeks (6%) after 5 yearsPEI moved to 3 weeks (6%) for service beyond 5 years; many older summaries still say 8.
Newfoundland and Labrador2 weeks (4%)3 weeks (6%) after 15 yearsThe 3-week bump takes 15 years, the longest threshold in Canada.
Yukon2 weeks (4%)No automatic increaseYukon has no automatic statutory increase; more vacation comes from the employment contract.
Northwest Territories2 weeks (4%)2 weeks (6%) after 5 years; 3 weeks (6%) after 6 years6% applies to wages from year 6 (once 5 years are completed); the first 3-week vacation follows year 6.
Nunavut2 weeks (4%)2 weeks (6%) after 5 years; 3 weeks (6%) after 6 years6% applies to wages from year 6 (once 5 years are completed); the first 3-week vacation follows year 6.
Federal (Canada Labour Code)2 weeks (4%)3 weeks (6%) after 5 years; 4 weeks (8%) after 10 yearsApplies to federally regulated industries: banks, airlines, telecom, interprovincial transport.

When to stop calculating

This math is exactly what payroll software is for

One employee, one province: a calculator is enough. Employees in two provinces, an anniversary that flips someone to 6% mid-year, a Saskatchewan hire accruing at 5.77%: that is when the spreadsheet starts quietly underpaying people. Payroll software applies each employee's provincial rate and tenure on every run and pays out the balance automatically on a final pay.

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Canadian payroll from $20/mo plus $4 per employee: CRA remittances, T4s, ROEs, and vacation accrual tracked per employee. New customers who sign up through our referral link receive a $150 gift card after their first payroll.

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Common Questions

Vacation pay FAQ

The rules employers ask about most, answered by a CPA.

How is vacation pay calculated in Canada?
Vacation pay is a percentage of the gross wages an employee earned during the vacation year: 4% in most provinces for the first years of service, rising to 6% after a service threshold (5 years in BC, Alberta, Manitoba and Ontario; 3 years in Quebec; past 5 years in PEI; more than 8 years in New Brunswick; from the 8th year of service in Nova Scotia). Saskatchewan uses 5.77% and 7.69%. Multiply gross vacationable wages by the rate to get the dollar amount.
Is this calculator accurate for my province?
The calculator applies the statutory minimums for all ten provinces, the territories, and federally regulated employers, including the details generic calculators miss: Saskatchewan's 5.77% and 7.69% fractional rates, Quebec's 3-year threshold, the federal 8% tier at 10 years, and BC's rule that previously paid vacation pay is itself vacationable. Employment contracts can promise more than the minimum, so check the contract too.
What counts as vacationable wages?
In most provinces gross wages include base salary or hourly earnings, overtime, statutory holiday pay, commissions, and non-discretionary bonuses; expense reimbursements, discretionary gifts, and benefit premiums are excluded. Alberta is the notable exception: its vacation pay base excludes overtime and general holiday pay. In BC, vacation pay that was already paid also counts, which is why the calculator shows an extra field for BC.
How do I calculate vacation pay per pay run?
Switch the calculator to per-pay-run mode, enter the gross pay for one pay period and your pay frequency, and it annualizes the wages, applies your province's rate, and shows the accrual per pay run. That per-run figure is what payroll software books as a vacation liability each time you run payroll.
Does vacation pay increase automatically at an anniversary?
The entitlement does, but payroll systems only apply it if the rate is updated. In most provinces the rate rises from 4% to 6% at the 5-year mark (3 years in Quebec, later in the Maritime provinces, 10 years for Saskatchewan's second tier and the federal 8% tier). A missed bump is the most common vacation pay error we see in small business books.
What happens to vacation pay when an employee leaves?
Accrued, unused vacation pay is wages and must be paid out with the final pay, calculated on all vacationable wages earned since the last entitlement year. It cannot be forfeited by a "use it or lose it" policy.
Is vacation pay taxable?
Yes. Vacation pay is employment income, subject to income tax, CPP and EI in the same way as regular salary. The calculator shows gross amounts before deductions.
Can an employer pay vacation pay on every cheque instead of when vacation is taken?
In most provinces yes, typically with the employee's agreement or for irregular schedules, and the percentage must appear separately on the pay statement. Salaried employees more commonly receive their normal salary while on vacation, which satisfies the entitlement as long as the math works out to at least the statutory minimum.

The bottom line

Get the minimum right, then automate it

The calculator gives you the statutory floor for any employee in Canada. The errors we find in real books are never the formula, they are the missed anniversary bump and the wrong vacationable base. Software that tracks both is cheaper than one Employment Standards complaint.

Sebastien Prost, CPA · Founder, LedgerLogic · Rates verified August 2026