How vacation pay works in Ontario
Ontario sets its vacation pay and vacation time minimums in the Employment Standards Act, 2000.
Ontario sets its vacation pay and vacation time minimums in the Employment Standards Act, 2000. Every employee starts earning vacation pay from their first days of work, at a minimum rate of 4% of gross wages for 2 weeks of vacation time per year.
That minimum rises once, to 6% and 3 weeks a year, once you pass 5 years of completed, continuous employment with the same employer. Before that anniversary, the lower 4% rate applies; from that anniversary on, 6% applies to your vacationable earnings going forward.
Vacation pay is calculated on your vacationable earnings, not just your base salary - Vacation pay in Ontario is calculated on the wages you earned in the 12-month vacation entitlement year, as defined by the Employment Standards Act, 2000. See the official source for exactly how overtime, commission and bonuses are treated. Enter your actual gross earnings for the period in the calculator above, and it will apply Ontario’s exact minimum automatically.
How Ontario compares across Canada
Compare with a neighbouring province or territory
| Jurisdiction | Weeks | Percent | Threshold | Confidence | Source |
|---|---|---|---|---|---|
| Federal | 2 → 3 → 4 | 4% → 6% → 8% | 5 yrs, 10 yrs | High | Source |
| Alberta | 2 → 3 | 4% → 6% | 5 yrs | High | Source |
| British Columbia | 2 → 3 | 4% → 6% | 5 yrs | High | Source |
| Manitoba | 2 → 3 | 4% → 6% | 5 yrs | High | Source |
| New Brunswick | 2 → 3 | 4% → 6% | 8 yrs | Medium | Source |
| Newfoundland and Labrador | 2 → 3 | 4% → 6% | 15 yrs | Medium | Source |
| Nova Scotia | 2 → 3 | 4% → 6% | 8 yrs | Medium | Source |
| Nunavut | 2 → 3 | 4% → 6% | 6 yrs | Medium | Source |
| Ontario | 2 → 3 | 4% → 6% | 5 yrs | High | Source |
| Prince Edward Island | 2 → 3 | 4% → 6% | 8 yrs | Medium | Source |
| Quebec | 2 → 3 | 4% → 6% | 3 yrs | High | Source |
| Saskatchewan | 3 → 4 | 5.77% (3/52) → 7.69% (4/52) | 10 yrs | High | Source |
| Northwest Territories | 2 → 3 | 4% → 6% | 5 yrs | Medium | Source |
| Yukon | 2 | 4% | - (flat, no increase) | Medium | Source |
Compare with a neighbouring province or territory
Ontario FAQ
What is the minimum vacation pay percentage in Ontario?
Under Employment Standards Act, 2000, vacation pay starts at a minimum of 4% of your gross wages, equal to 2 weeks of vacation time, from your first year of employment.
When does vacation pay in Ontario increase to 6%?
It increases after 5 years of completed, continuous service, at which point the minimum rises to 6% of your gross wages and 3 weeks of vacation time under the Employment Standards Act, 2000.
How much vacation time do I get in Ontario?
The Employment Standards Act, 2000 sets a minimum of 2 weeks then 3 weeks, rising with years of completed service as shown in the calculator above. This is a floor, not a cap - your employer’s policy or employment contract can always offer more than the legal minimum, but not less.
What counts as vacationable earnings in Ontario?
Vacation pay in Ontario is calculated on the wages you earned in the 12-month vacation entitlement year, as defined by the Employment Standards Act, 2000. See the official source for exactly how overtime, commission and bonuses are treated.
Is vacation pay paid out if I quit or am terminated in Ontario?
Yes. Any vacation pay you have earned but have not yet been paid must be included in your final pay when your employment with an employer in Ontario ends, whether you resign, are laid off, or are terminated. Check the official source above for the exact number of days your employer has to issue that final payment.
Does Ontario’s vacation pay rule apply to part-time employees?
Yes. Because vacation pay is a percentage of the wages you actually earned rather than a fixed weekly amount, part-time, casual and seasonal employees in Ontario earn it in proportion to their pay, on the same percentage schedule as full-time employees.