Vacation pay · Ontario
Ontario vacation pay.
How much vacation pay you are owed in Ontario, and how many weeks of vacation time your years of service entitle you to.
In Ontario vacation pay is at least 4% of gross wages with two weeks of vacation time, rising to 6% and three weeks once you reach five years of employment.
It is calculated on the gross wages you earned in your 12-month vacation entitlement year, excluding the vacation pay itself. Overtime and public holiday pay are included in that base; tips and discretionary bonuses are not.
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Your vacation entitlement
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How Ontario vacation entitlement steps up
| Length of service | Vacation time | Vacation pay |
|---|---|---|
| From the first year up to 5 years | 2 weeks | 4% |
| 5 years and over | 3 weeks | 6% |
The step happens at five years of employment, not five years of full-time service, and there is no tier in between. Time on a job-protected leave still counts toward the five years.
Source, last verified 2 September 2026: Ontario.ca — Vacation, Your guide to the Employment Standards Act.
How Ontario vacation pay is calculated
Ontario vacation pay is a percentage of your gross wages for the vacation entitlement year: at least 4% for employees with under five years of employment and at least 6% from five years. The percentage applies to wages earned, so it is not a flat weeks-of-pay figure and it is not tied to when you actually take the time off. The vacation time (two weeks, then three) and the vacation pay (4%, then 6%) are two separate entitlements that happen to step up on the same anniversary.
Worked examples
- Under five years. You earned $41,600 in gross wages in your entitlement year, excluding any vacation pay already paid out. 4% of $41,600 is $1,664.00.
- Five years or more. The same $41,600 at 6% is $2,496.00, a difference of $832.00.
- Reaching five years part-way through. If you cross the five-year line during the year, Ontario’s guide applies 6% to the gross wages for that whole year. A part-timer with $16,000 in wages who reaches the threshold mid-year is owed $960.00, not $640.00.
What counts as gross wages
The base includes regular earnings and commissions, non-discretionary bonuses and gifts, bonuses related to hours of work, overtime pay, public holiday pay, termination pay, allowances for room and board, and domestic or sexual violence leave pay. It leaves out vacation pay itself (whether paid or earned but unpaid), tips and gratuities, discretionary bonuses unrelated to hours or output, expense and travel allowances, living allowances, employer benefit-plan contributions and benefit payments, federal EI benefits and severance pay.
Vacation entitlement years and stub periods
The usual vacation entitlement year is a 12-month period starting on your hire date. Some employers set an alternative year, such as January 1 to December 31, which creates a stub period between your hire date and the first alternative year. You are entitled to pro-rated vacation time for the stub: if you were hired September 1 and the alternative year starts January 1, the stub is four months, and the time owed is 2 weeks × 4/12 = two-thirds of a week. Time away on layoff, sickness, injury or a job-protected leave still counts inside the entitlement year.
You only earn the vacation time by completing the full entitlement year (or stub), but you earn vacation pay as you earn wages. If you leave after working only a few shifts, you are still owed 4% of what you earned.
When vacation pay has to be paid
In most cases the pay for a completed entitlement year must be paid as a lump sum before the vacation begins. The guide sets out four exceptions:
- Vacation taken in blocks shorter than a week — pay is due on or before the pay day for the period in which the vacation falls.
- You have agreed, in writing or electronically, to receive it on each pay cheque as it accrues, shown separately on the wage statement.
- You agree in writing or electronically to a different timing.
- You are paid by direct deposit — vacation pay is then due on or before the pay day for the period in which the vacation falls.
If you are paid 4% on each cheque and later reach five years, the employer must top up the earlier wages by another 2% and then pay 6% going forward. On the guide’s example, the top-up is due on the pay day for the period containing the five-year anniversary.
When employment ends
Unpaid vacation pay is owed when you quit or are let go, including pay from earlier years that was never paid. It must be paid within seven days of the employment ending or on what would have been the next pay day, whichever is later. Vacation pay is payable on termination pay but not on severance pay.
What this calculator does and doesn’t do
It applies the Employment Standards Act minimums: 4% or 6% of the gross wages you enter. Your contract or a collective agreement can give you more, for example four weeks and 8%. Some jobs are exempt from the vacation-with-pay rules, and the Ontario guide points to a special rule tool for them. The result is gross pay: income tax, CPP and EI come off it. Related: vacation pay by province, Ontario overtime (overtime counts in the base) and Ontario public holiday pay.
Frequently asked questions
How much vacation pay am I owed in Ontario?
At least 4% of your gross wages for the vacation entitlement year if you have been employed less than five years, and at least 6% once you reach five years of employment.
On $52,000 of gross wages that is $2,080 at 4% and $3,120 at 6% — a difference of $1,040 a year that turns on a single anniversary date.
When do I get three weeks of vacation in Ontario?
After five years of employment with the same employer. Vacation time goes from two weeks to three, and vacation pay from 4% to 6%, at the same moment.
It is five years of employment, not five years of active work: time on a job-protected leave still counts toward the five years.
Does overtime count toward vacation pay in Ontario?
Yes. Overtime pay, public holiday pay, commissions, and bonuses that are non-discretionary or tied to hours worked all form part of the gross wages vacation pay is calculated on.
Excluded are the vacation pay itself, tips and other gratuities, discretionary bonuses and gifts, expenses and travel allowances, employer benefit-plan contributions, EI benefits, and severance pay.
Can my employer pay vacation pay on every cheque?
Only with your written agreement. Otherwise vacation pay is paid as a lump sum before the vacation starts, or on the pay day for the period in which the vacation falls.
Being paid 4% each cheque does not remove your right to the time off. The time and the money are separate entitlements.
When is vacation pay paid in Ontario?
Usually as a lump sum before your vacation starts. Exceptions apply when you take vacation in blocks shorter than a week, when you agree in writing or electronically to be paid on each cheque or at another time, and when you are paid by direct deposit, in which case it is due on or before the pay day for the period containing your vacation.
How is vacation pay calculated if I am paid 4% on every cheque?
You receive 4% of the wages in each pay period until you reach five years of employment. At that point your entitlement rises to 6% on all wages for the entitlement year, so your employer owes a further 2% on the earlier wages that year and 6% on wages from then on.
Do I get vacation pay when I quit or am terminated in Ontario?
Yes. You are owed all vacation pay you have earned and not been paid, including from earlier years if it was never paid. It is due within seven days of your employment ending or on what would have been your next pay day, whichever is later. It is payable on termination pay but not on severance pay.
Do I earn vacation pay if I only work a few shifts?
Yes. You earn vacation pay as you earn wages, so even one hour of work generates 4% of that hour’s wages as vacation pay. You do not qualify for vacation time under the Act unless you complete the full entitlement year.
Sources
Official and primary sources used for this page. Rates and rules were read from these pages in October 2026; check them again before relying on a figure for a dispute or a payroll run.
Estimate only — not legal advice
This calculator produces an estimate from the published employment-standards minimums. It is not legal advice and it is not a determination of what you are owed. Vacation entitlement in Ontario is set by the Ontario Ministry of Labour, Immigration, Training and Skills Development.
Collective agreements, employment contracts, exemptions for your occupation, averaging agreements and permits can all change the answer. For a binding answer, contact the employment-standards office named above or a lawyer.