Vacation pay · Prince Edward Island
Prince Edward Island vacation pay.
How much vacation pay you are owed in Prince Edward Island, and how many weeks of vacation time your years of service entitle you to.
Prince Edward Island pays vacation at 4% of wages with two weeks off, rising to 6% and three weeks after five years of continuous employment.
The five-year threshold is new: the previous Act stepped at eight years and was repealed. PEI is also the only province that includes the cash value of employer-provided meals and lodging in the vacation pay base.
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Your vacation entitlement
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How Prince Edward Island 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% |
This changed recently. The old Employment Standards Act, Chapter E-6.2, was repealed and replaced by a new Act, Chapter E-6.3, under which vacation steps at five years — sections 29 and 30. Older guidance saying eight years is out of date. A paid holiday falling during your vacation lengthens the vacation by one paid day, and paid sick leave cannot be counted as vacation pay or as pay in lieu.
Source, last verified 2 September 2026: Government of PEI — Vacation and vacation pay.
Frequently asked questions
How much vacation pay does PEI require?
4% of wages for employees with less than five years of continuous employment, and 6% at five or more years, under section 29 of the Employment Standards Act.
The base is your wages plus the cash value of any meals or lodging your employer provides.
Did PEI change its vacation rules?
Yes. The old Act, Chapter E-6.2, was repealed and replaced by Chapter E-6.3, under which vacation steps at five years rather than eight.
Older guidance quoting an eight-year threshold for PEI is out of date. The province’s current page says plainly that employees who have worked more than five years get at least three weeks.
Do meals and lodging count toward PEI vacation pay?
Yes, and PEI is the only province where they do. Section 29 calculates vacation pay on your wages plus the cash value of any meals or lodging provided by the employer.
The cash value is the maximum deductible amount set in the Board’s order — the same board-and-lodging figures that cap what can be deducted from your pay.
What if a holiday falls during my vacation in PEI?
Your vacation is lengthened by one day, paid. The holiday does not get absorbed into the vacation.
Paid sick leave is treated separately again: it cannot be counted as vacation pay or as pay in lieu of vacation.
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 Prince Edward Island is set by PEI Employment Standards.
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.