Vacation pay in Ontario is usually based on a simple rule: 4% of “vacationable wages” for most employees, and 6% once you’ve been with the same employer for 5+ years (ESA minimums). This Ontario Vacation Pay Calculator gives a fast estimate so you can sanity-check your pay stub and spot mistakes early.
Important notes before you calculate
- Vacation “year” matters: Many workplaces use a vacation entitlement year (for example: hire date to hire date), not the calendar year.
Use the wages that match your employer’s vacation year if you can. - Timing rule (common ESA requirement): Vacation time is generally expected to be taken within 10 months after it’s earned (unless your workplace policy/arrangement says otherwise). If you’re carrying a big balance, it’s worth confirming with payroll/HR.
- Minimums vs. your contract: This tool estimates ESA minimums. Your contract/union agreement may give you more vacation pay/time.
What this tool does
- Estimates your vacation pay rate (4% or 6%).
- Calculates estimated vacation pay based on the wages you enter.
- Gives an estimate in two ways:
- Simple: pick “Less than 5 years” or “5 years or more”
- By Date: enter your start date so the tool estimates your tenure
Ontario Vacation Pay Calculator
Estimates vacation pay using Ontario ESA minimums (4% / 6%). Always confirm with your pay stub / employer.
Inputs
Result
ESA minimums are common, but contracts/industries can differ (for example, union agreements).
Inputs
Result
Tenure is estimated from your start date to today. If you’re close to 5 years, confirm with payroll/HR.
*Educational estimate only (Ontario ESA minimums). Exceptions may apply by industry, contract, or policy.
How to use it (30 seconds)
- Enter your gross wages for your vacation entitlement year (before deductions).
If you don’t know your vacation year, a practical backup is “your last 12 months of gross wages,” but your employer’s vacation year may be different. - Choose a mode:
- Simple: select your tenure category.
- By Date: enter your employment start date.
- Click Calculate to see:
- Vacation pay rate
- Vacation time (2 weeks or 3 weeks minimum)
- Estimated vacation pay on those wages
Quick examples
Example 1: Under 5 years (4%)
If your gross wages for the vacation year are $40,000:
Vacation pay ≈ $40,000 × 0.04 = $1,600
Example 2: 5+ years (6%)
If your gross wages are $40,000 and you’ve been there 5+ years:
Vacation pay ≈ $40,000 × 0.06 = $2,400
Why your pay stub might look “different” (and still be correct)
Your employer can handle vacation pay in different ways:
- Accrued (banked): vacation pay builds up and you receive it when you take vacation.
- Paid each paycheque: you get vacation pay every pay period as a separate line item, so your “owed” balance may stay close to $0 even though you’re still earning it.
What counts as “vacationable wages” (general guidance)
Vacation pay is often calculated on most earnings, such as:
- Regular wages
- Overtime
- Public holiday pay
- Non-discretionary bonuses / commissions
Often not included:
- Vacation pay itself
- Expense reimbursements
- Some discretionary bonuses
Tips/gratuities: whether tips are included in “vacationable wages” can vary by workplace setup and policy (for example: direct tips vs. pooled/service-charge arrangements). If tips are a big part of your pay, confirm with payroll/HR how they treat them for vacation pay.
FAQs
What if my employer’s “vacation year” isn’t the calendar year?
That’s common. If your pay stub or HR policy shows a vacation year (often based on your hire date), use wages from that period for the cleanest estimate.
Do part-time workers get vacation pay in Ontario?
Yes. Vacation pay rules apply to most employees, including part-time.
Is vacation pay always 4% or 6%?
Those are minimums under the ESA for many employees. Some workplaces provide more.
Does “5 years” mean continuous employment with the same employer?
Usually yes. If you’re near the 5-year mark, confirm your official service date with payroll/HR.
Should I use net pay or gross wages?
Use gross wages (before deductions).
What if I quit or get terminated?
If your employment ends (quit, laid off, or terminated), any vacation pay you’ve earned but haven’t received must be paid out. This is why your final pay can include a separate “vacation pay” amount even if you didn’t take the time off.
Note: Estimates only (Ontario ESA minimums). Use your employer’s vacation entitlement year (not necessarily calendar year). Tips may vary by policy. Vacation is generally taken within 10 months of being earned. Earned vacation pay is paid out when employment ends.
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