Canada vacation pay calculator: 4%, 6% and what it means in dollars
This vacation pay calculator works out the minimum vacation pay an employee earns in Canada: a percentage of gross wages that rises with years of service. In Ontario, Alberta and Manitoba it is 4% of gross wages for the first years of employment and 6% from five years, with two weeks of vacation time rising to three. Enter your province, years of employment and the gross wages earned in the year, and the dollar amount appears at once.
The three provinces above are preset from the government pages read on 24 October 2026. Rules for the other provinces, the territories and federally regulated employers are not preset: choose “Another province” and type the rate from your employment standards office, and the same calculation applies. Add the gross pay of one pay period and you also see the vacation pay on each pay cheque if it is paid as you go.
How to use the Canada Vacation Pay Calculator
- Choose your province, or “Another province” to use your own rate.
- Enter your years of employment at the end of the vacation year (decimals are fine, for example 4.5).
- Enter the gross wages earned in the year, before tax and without vacation pay already paid.
- Optionally enter the gross pay of one pay period to see vacation pay per cheque.
- Read the amount, the rate, the vacation time and the table of rates, then copy the summary.
Canada Vacation Pay Calculator features
Three provinces preset
Ontario, Alberta and Manitoba, each with the page it was read from and the date.
Your own rate
Any province, territory or federal rate from 0% to 30% overrides the preset.
Vacation time and weekly value
Weeks of vacation for your years of service and the pay per week of vacation.
Per-cheque view
What 4% or 6% adds to each pay period if vacation pay is paid with every cheque.
How vacation pay is calculated
Vacation pay = gross wages × rate. An Ontario employee with three years of service who earned $52,000 in the vacation year is owed at least 4%: $52,000 × 0.04 = $2,080. With five years the rate is 6%: $52,000 × 0.06 = $3,120. Because the rate depends on the years of employment at the end of the vacation year, an employee who reaches the fifth anniversary during the year is entitled to 6% on that whole year in Ontario.
Gross wages generally include regular pay, overtime, commissions and other earnings that count as wages, but not the vacation pay itself. Which payments count is set by each province’s law, so check your employment standards office for tips, bonuses and allowances.
| Province | Under 5 years | 5 years or more | Vacation time |
|---|---|---|---|
| Ontario | 4% | 6% | 2 weeks, then 3 weeks |
| Alberta | 4% (after 12 months) | 6% | 2 weeks, then 3 weeks |
| Manitoba | 4% (after 1 year) | 6% | 2 weeks, then 3 weeks |
Limits and good practice
- These are statutory minimums. Many employers give more vacation or a higher rate, and a collective agreement can set a different figure.
- Rules for ending a job, public holidays, part-year work and the exact payment date differ by province; this tool does not model them.
- Net pay after tax is different: use the Canada take-home pay calculator for that, and the holiday entitlement calculator for UK holiday.
- Federally regulated employers (banks, airlines, telecoms and others) follow the Canada Labour Code, not the provincial rules; enter that rate manually.
Canada Vacation Pay Calculator FAQ
How much is vacation pay in Ontario?
At least 4% of gross wages for employees with under five years of employment and at least 6% from five years, with two and then three weeks of vacation time.
How do I calculate vacation pay?
Multiply the gross wages earned in the vacation year, without vacation pay, by the rate. $40,000 at 4% is $1,600.
What is the difference between 4% and 6% vacation pay?
It depends on years of service. In Ontario, Alberta and Manitoba the rate steps up from 4% to 6% at five years of employment.
Is vacation pay included in gross wages?
The percentage is applied to wages excluding vacation pay. Wages plus vacation pay is shown separately as a total.
What rate applies in other provinces?
It varies, and some provinces have more than two steps. Choose “Another province” and type the rate from your province’s employment standards office.
Can vacation pay be paid on every cheque?
In some provinces it can be paid with each cheque if the employee agrees; rules differ. The per-cheque figure shows the extra amount at the chosen rate.
Is this payroll or legal advice?
No. It is an estimate of the statutory minimum from the figures you enter.