$TStateTakeHome
Tax year 2026

Vacation Pay Calculator (2026)

Direct answer

Direct answer: Vacation pay is a percentage of your gross earnings. Most jurisdictions pay 4% (2 weeks) and rise to 6% (3 weeks) with tenure — Quebec at 3 years, Ontario, BC, Alberta and Manitoba at 5 years. Saskatchewan starts at 3 weeks (5.77%) and reaches 4 weeks (7.69%) at 10 years, and the federal rule adds 8% (4 weeks) at 10 years. Choose your jurisdiction and enter your earnings above.

What is vacation pay in Ontario?

Ontario pays 4% of gross earnings (2 weeks) for the first 5 years, rising to 6% (3 weeks) after 5 years of service.

How is vacation pay calculated?

Multiply your gross earnings in the year by the vacation pay rate for your jurisdiction and tenure — 4%, 6%, or more.

Which province has the highest minimum vacation pay?

Saskatchewan: a minimum of 3 weeks (5.77%) from year one, rising to 4 weeks (7.69%) after 10 years.

Does vacation pay increase with years of service?

Yes. Most jurisdictions move from 4% to 6% with tenure; Quebec at 3 years, most others at 5 years, and the federal rule adds 8% at 10 years.

Vacation Pay Calculator (2026)

Your vacation pay
$3,120
Vacation pay rate: 6% of gross earningsVacation time: 3 weeks
Minimum under employment standards. Your contract may give more.

How is vacation pay calculated?

Vacation pay is a minimum percentage of the gross wages you earn in a year, set by your jurisdiction's employment standards. It is separate from vacation time, which is the number of weeks off. To find your minimum:

  1. Choose your jurisdiction (province or federal).
  2. Enter your years of completed service.
  3. Enter your gross earnings for the year.
  4. The calculator applies the correct rate and shows the dollar amount and weeks of time off.

What are the vacation pay rates by jurisdiction for 2026?

The table below shows the government-verified minimums for the jurisdictions covered. The percentage is the vacation pay; the weeks are the vacation time. Many provinces share the standard 4% / 6% pattern but differ on the tenure threshold.

JurisdictionFirst tierHigher tier
Ontario, BC, Alberta, Manitoba4% / 2 weeks6% / 3 weeks at 5 years
Quebec4% / 2 weeks6% / 3 weeks at 3 years
Saskatchewan5.77% / 3 weeks7.69% / 4 weeks at 10 years
Federal (CLC)4% / 2 weeks6% at 5 years, 8% / 4 weeks at 10 years

Why is vacation pay different from vacation time?

The two are set separately and often confused. Vacation time is the minimum number of weeks off you are entitled to take. Vacation pay is the money you receive for that time, expressed as a percentage of your gross earnings. For example, Ontario's 2-week entitlement comes with 4% pay, which is roughly two weeks of an even salary but is calculated on all gross earnings including overtime and commissions, so it can be worth more than two weeks of base pay. Saskatchewan's 3-week minimum is the most generous in the country.

When must vacation pay be paid?

Most jurisdictions require vacation pay to be paid before the vacation begins, though some allow it on each paycheque or at year-end if agreed. On termination, all accrued and unused vacation pay must be paid out. We cover the jurisdictions we verified directly against government employment-standards pages; other provinces follow the standard 4% / 6% pattern with their own long-service thresholds. For related tools, see the severance pay calculator, the bonus tax calculator, or the Canada take-home pay calculator.

Verified by our data team

Last updated: June 19, 2026. Verified against CRA (T4127 payroll formulas, 2026), Revenu Québec, and the provincial tax authorities.

What are the most frequently asked questions?

  • 4% of gross earnings (2 weeks) for the first 5 years, rising to 6% (3 weeks) after 5 years.

  • 4% (2 weeks) until 3 years of service, then 6% (3 weeks) from 3 years onward.

  • A minimum of 3 weeks (5.77%) from year one, rising to 4 weeks (7.69%) after 10 years — the most generous minimum in Canada.

  • 4% (2 weeks) after 1 year, 6% (3 weeks) after 5 years, and 8% (4 weeks) after 10 years under the Canada Labour Code.

  • Yes, on gross earnings in the reference year, which generally include wages, overtime and commissions.

  • Usually before the vacation begins, and always on termination for any accrued, unused amount.

Disclaimer: the information on this page is for educational and estimation purposes only; it is pricing and market research, NOT tax or legal advice. Always consult a qualified professional for your specific situation.