Ontario Vacation Pay Calculator
Vacation pay in Ontario is a percentage of the gross wages you earn: at least 4% if you have less than five years with the employer, at least 6% once you have five or more. It accrues from your first hour of work — you do not have to wait a year. Enter wages for any period (one cheque, a month, a year) to see the minimum you are owed.
Official sources
Limitations
- Ontario only. This tool previously offered every province with unverified tiers; those were removed until each province’s rules are checked against its own official source.
- Federally regulated employees (banks, telecoms, airlines, interprovincial transport) follow the Canada Labour Code instead.
- Vacation time (weeks off) is shown as the ESA minimum; stub-period pro-rating and alternative vacation entitlement years are described below but not modelled in detail.
Results are estimates for general information and are not legal, tax, payroll or financial advice. Employment contracts, collective agreements and individual circumstances can change what you are owed.
Formula
vacation pay = gross wages (excluding vacation pay already paid) × rate
rate = 4% if years of employment at end of entitlement year < 5
6% if years of employment ≥ 5
(or the higher rate in your contract)Worked example
| Annual gross wages, 3 years of service | $52,000.00 |
| Vacation pay at 4% | $2,080.00 |
| Same wages, 6 years of service, at 6% | $3,120.00 |
| One biweekly cheque of $2,000 with vacation pay paid each period (4%) | $80.00 → gross line $2,080.00 |
Vacation pay vs. vacation time
They are tracked separately. Vacation pay is money — a percentage of what you earn. Vacation time is the two or three weeks you are entitled to take after each 12-month entitlement year. Employers may use a standard entitlement year (your hire anniversary) or an alternative one (for example the calendar year); with an alternative year the period between your hire date and the first alternative year is a stub period, with pro-rated vacation time.
Check your pay stub
If vacation pay is paid out every period, the gross line on your cheque should equal wages × 1.04 (or 1.06). The Ontario gross pay checker rebuilds the whole cheque including overtime and public holiday pay so you can compare. Vacation pay payable also feeds into public holiday pay.
Frequently asked questions
How much vacation pay do I get in Ontario?
At least 4% of your gross wages if you have been with the employer less than five years, and at least 6% once you have five or more years of employment at the end of a vacation entitlement year. If you reach five years part-way through the year, the 6% applies to the whole of that year.
Which wages does vacation pay apply to?
Regular earnings including commissions, overtime pay, public holiday pay, termination pay, non-discretionary bonuses and room-and-board allowances. It does not apply to tips and gratuities, discretionary gifts, expense or travel allowances, benefit-plan contributions, EI benefits, severance pay, or vacation pay itself.
Does vacation pay start on day one?
Yes. Vacation pay accrues as you earn wages from the first day. Only vacation time (the right to take weeks off) requires completing a 12-month entitlement year or stub period.
When does my employer have to pay it?
Normally as a lump sum before you take the vacation. With your written or electronic agreement it can instead be added to every pay cheque, which is why many pay stubs show a 4% “vacation pay” line. When employment ends, all accrued vacation pay must be paid within 7 days or by the next regular payday, whichever is later.
How many weeks of vacation time am I entitled to?
Two weeks after each completed 12-month entitlement year with less than five years of employment; three weeks once you have five or more years.
Can my contract give less than 4%?
No. The ESA sets a floor. A contract or collective agreement can give more (the calculator lets you enter a higher rate) but never less.