Federal Vacation Pay Calculator

How the federal vacation pay calculator works

1. 1

   Enter your years of completed employment

   Vacation entitlement under the Canada Labour Code is tiered by completed years of service with the same employer, so enter the number of full years you have completed.

2. 2

   Enter your gross wages for the vacation year

   Vacation pay is calculated as a percentage of the wages earned in the vacation year that the entitlement relates to, so enter your gross earnings for that year.

3. 3

   Read your entitlement tier

   The calculator matches your years of service to the applicable Labour Code tier and shows the vacation weeks and percentage that apply.

4. 4

   Read your calculated vacation pay

   The result multiplies your gross wages by the applicable percentage to estimate the vacation pay you are owed for the year.

The federal vacation pay formula

Vacation pay = gross wages in the vacation year x vacation pay rate for your service tier 1 year: 2 weeks / 4% -- 5 years: 3 weeks / 6% -- 10 years: 4 weeks / 8%

• •This applies to federally regulated employees under the Canada Labour Code -- banking, telecommunications, interprovincial transportation and similar federally regulated sectors.
• •Provincially regulated employees (most of the workforce) follow their own province's employment standards, which can set different tiers and percentages.
• •Vacation pay is calculated as a percentage of gross wages actually earned in the vacation year, not as a flat amount independent of earnings.
• •The tiers are minimums under the Labour Code; a collective agreement or employer policy can provide more but not less.

Worked example: 10 years of service on $65,000 gross wages

A federally regulated employee has completed 10 years of service and earned $65,000 in gross wages during the vacation year.

Years of completed employment

10

Entitlement tier

4 weeks / 8%

Gross wages in the vacation year

$65,000

Vacation pay rate

8%

Calculated vacation pay

$5,200.00

The employee is entitled to 4 weeks of vacation and $5,200.00 in vacation pay for the year.

Canada Labour Code federal vacation entitlement tiers

Minimum entitlement for federally regulated employees under the Canada Labour Code.

Source: Government of Canada, Government of Canada

Who this applies to, and what is not included

This is for federally regulated employees only

The Canada Labour Code vacation provisions apply to employees in federally regulated industries such as banking, telecommunications and interprovincial transportation. Most Canadian employees are provincially regulated and follow their own province's employment standards instead.

Provincial vacation rules differ

Provinces set their own vacation entitlement tiers and percentages under their employment standards legislation, which can differ from the federal tiers shown here. Check the applicable provincial act if you are not federally regulated.

Vacation pay tracks actual earnings

Because vacation pay is a percentage of gross wages earned in the vacation year, it rises and falls with your actual earnings for that year rather than being a fixed dollar amount tied only to your service tier.

This is entitlement calculation, not scheduling

The Labour Code also sets rules for when vacation must be scheduled and taken, which are separate from the entitlement and pay calculation shown here.

Frequently asked questions

How much vacation do federally regulated employees get in Canada?

Under the Canada Labour Code, federally regulated employees are entitled to 2 weeks of vacation with 4% vacation pay after 1 year of service, rising to 3 weeks and 6% after 5 years, and 4 weeks and 8% after 10 years. These are minimums; a collective agreement or company policy can provide more.

Does this apply to all Canadian employees?

No. These tiers apply only to federally regulated employees -- those working in industries like banking, telecommunications, and interprovincial or international transportation. The large majority of Canadian employees are provincially regulated and follow their own province's employment standards act, which can set different vacation tiers and percentages.

How is vacation pay calculated?

Vacation pay is calculated as a percentage (4%, 6% or 8% depending on your service tier) of the gross wages you actually earned during the vacation year the entitlement relates to. This means vacation pay scales with your real earnings for the year, not with a fixed salary figure.

What happens to my vacation tier if I change employers?

Vacation entitlement tiers under the Canada Labour Code are based on years of continuous service with your current employer, so starting a new job generally resets you to the first tier regardless of your total years of work experience elsewhere, unless your new employer's policy states otherwise.

Can my employer give me less than the Labour Code minimum?

No. The vacation weeks and percentages set out in the Canada Labour Code are minimum standards for federally regulated employees. A collective agreement, employment contract or company policy can provide more generous vacation entitlement, but it cannot legally provide less than the applicable Labour Code tier.