For most employees in Canada, statutory holiday pay is calculated using 1/20th (5%) of the wages earned in the 4 week period preceding the holiday. The eligible earnings used in this calculation vary by jurisdiction and are based on the legislation set out by the Labour Program/Ministry of Labour for the local jurisdiction under which the employee’s work is governed.
The federal method will calculate statutory holiday pay entitlement for employees using 1/20th of their eligible wages earned in the four weeks before the holiday according to our payroll records. Please note that due to differences in payroll frequencies and pay period coverage dates, the amount calculated by the system may not be 100% accurate according to legislation. It is important to verify the assigned amounts with the Labour Program/Ministry of Labour of each applicable jurisdiction to ensure that the statutory holiday pay amounts meet the minimum pay requirements according to legislation for each employee.
For more information about how statutory holiday pay calculation works, visit this article: How statutory pay calculations work.
Earnings subject to the calculation of statutory holiday pay by jurisdiction
Not all earnings are included in the calculation of statutory holiday pay as illustrated in the following table.
The following table is reproduced from the guidelines published by the National Payroll Institute found here, starting on page 22 in the table.
Earnings subject to the calculation of statutory holiday pay
| Jurisdiction | Earnings |
| CLC |
Wages earned, excluding overtime. “Wages” are defined as regular earnings for work performed, premium pay for the time worked on general holidays, pay for general holidays, pay in lieu of general holidays, bereavement leave pay, vacation pay, pay pending an employer’s decision on maternity-related reassignment/leave or any other remuneration (monetary or non-monetary) an employee is entitled to under their contract of employment which meets the test of being for work performed. For example, wages include commission on sales, flight pay, production bonuses, northern allowances (isolation allowances), and safety bonuses, but do not include tips, gratuities, monies accruing to an employee upon termination, pay in lieu of notice, severance pay or compensation under Division XIV (unjust dismissal). Performance-related bonuses are included, but discretionary bonuses are excluded |
| AB |
Regular wages earned, excluding overtime. “Wages” are defined as salary, hourly pay, money paid for the time instead of overtime pay, commission or remuneration for work (however calculated), but do not include overtime pay, vacation pay, statutory holiday pay or termination pay. Construction employees are entitled to holiday pay of at least 3.6% of their wages. Performance-related bonuses are included, but discretionary bonuses are excluded. |
| BC |
Total wages, excluding overtime. “Wages” are defined as: wages, commissions, statutory holiday pay, vacation pay and sick pay required by the ESA, but do not include overtime pay or payments from benefit plans. Performance-related bonuses are included, but discretionary bonuses are excluded. |
| MB |
Regular wages, excluding overtime. “Regular wages” are defined as the wages paid or payable to an employee for regular hours of work, and include salary, commission or compensation in any form measured by time, piece or otherwise, statutory holiday pay, vacation pay and other benefits which the employee is entitled to under the Code. Performance-related bonuses are included, but discretionary bonuses are excluded. |
| NB |
Regular wages, excluding overtime when wages vary*. “Regular wages” are defined as wages, salary, commissions and compensations in any form for work or services measured by time, piece or otherwise, but do not include statutory holiday pay, pay in lieu of statutory holidays, vacation pay, pay in lieu of vacation, gratuities or honoraria. Performance-related bonuses are included, but discretionary bonuses are excluded. |
| NL |
Regular wages. “Regular wages” are defined as remuneration, salary, commission or return in a form permitted by the Labour Standards Act or combination of forms, for work or services performed by an employee for an employer under a contract of service, vacation pay and holiday pay, but do not include tips and gratuities. The employer has the choice to include both performance-related bonuses and discretionary bonuses. |
| NT/NU |
Average daily wage. “Wages” are defined as payment for work performed including vacation, overtime and statutory holiday pay, but do not include gratuities. Performance-related bonuses and discretionary bonuses are excluded. |
| NS |
Regular wages. “Regular wages” are defined as salaries, commission, and compensation in any form for work or services measured by time, piece or otherwise including statutory holiday pay, but do not include vacation pay and pay in lieu of vacation. The employer has the choice to include performance-related bonuses, but discretionary bonuses are excluded. |
| ON |
Regular wages, excluding overtime, plus vacation pay payable**. “Regular wages” are wages other than overtime pay, public holiday pays, premium pay, vacation pay** , domestic or sexual violence leave pay, personal emergency leave pay, termination pay and severance pay. Performance-related bonuses are included, but discretionary bonuses are excluded |
| PE |
Regular wages. “Regular wages” include salaries, commissions and statutory holiday pay, as well as compensation in any form for work or service measured by time, piecework or otherwise, but do not include vacation pay, pay in lieu of vacation or gratuities. Annual performance-related bonuses and discretionary bonuses are excluded. |
| QC |
Regular wages, excluding overtime. “Regular wages” are defined as remuneration in currency and benefits that have financial value for work or services performed including reported tips and statutory holiday pay. Annual performance-related bonuses and discretionary bonuses are excluded. |
| SK |
Regular wages, including annual holiday pay but excluding overtime. “Regular wages” are defined as all wages, salaries, pay, commission and any compensation for labour or personal services, whether measured by time, piece or otherwise including public holiday pay and excluding overtime to which an employee is entitled. Hourly paid construction employees are entitled to 4% of all gross wages (exclusive of overtime and annual holiday pay) earned each calendar year as public holiday pay. Annual performance-related bonuses and discretionary bonuses are excluded. |
| YT |
Wages, excluding vacation pay. “Wages” are defined as monetary remuneration under the terms of the employment contract and any payment under the Employment Standards Act payable to the employee plus travel allowances as prescribed in the regulations including statutory holiday pay, but do not include gratuities or any payment that is not tied to production, efficiency or hours of work. Annual performance-related bonuses and discretionary bonuses are excluded. |
* In New Brunswick, overtime that is considered as a regular and scheduled occurrence is included in the calculation of statutory holiday pay.
** In Ontario, vacation pay payable with respect to the four weeks before the week that includes the holiday must be included in the public holiday pay calculation (e.g., if the employee is on vacation and received vacation pay during the four prior weeks; if the employee receives vacation pay each pay period; or if the employee receives a lump-sum vacation payment during the four weeks prior). Please refer to Ontario’s Public Holiday Guide for more details and examples.