Vacation Pay Calculator (Ontario)
Minimum vacation pay owed under the Ontario ESA based on gross wages and years of service.
✓ Verified 2026-09-19 · sources cited below · no sign-up
How Ontario vacation pay works
Vacation pay is a percentage of the wages earned during the vacation entitlement year (usually 12 months from the hire date or an alternative year the employer sets). The ESA minimum is 4% for employees with less than five years of employment and 6% once they reach five years. Vacation time (2 or 3 weeks) is a separate entitlement from vacation pay; both apply.
Wages for this purpose include regular pay, overtime, commissions, shift premiums, and non-discretionary bonuses. They exclude vacation pay previously paid, tips, discretionary gifts, and expense reimbursements.
Frequently asked questions
What is the vacation pay rate in Ontario?
Under the Employment Standards Act, employees with less than 5 years of service earn at least 4% of gross wages; employees with 5 or more years earn at least 6%. Employers may pay more by contract.
Is vacation pay calculated on overtime and commissions?
Yes. Vacation pay is a percentage of all wages earned in the vacation entitlement year, including overtime, commissions, and most bonuses tied to hours or productivity. It excludes prior vacation pay, tips, and discretionary gifts.
When must vacation pay be paid?
Normally in a lump sum before the vacation is taken. With written agreement it can be paid on each pay cheque, on a set date, or on termination. Vacation pay owing must be paid within 7 days of termination or on the next regular pay day, whichever is later.
Does this apply to federally regulated workplaces?
No. Banks, airlines, telecoms, and interprovincial trucking follow the Canada Labour Code: 4% under 5 years, 6% at 5 years, 8% at 10 years.
Source: Ontario Employment Standards Act, 2000 – Vacation. Verified 2026-09-19. This is a minimum-standards estimate, not legal advice; contracts and collective agreements may provide more.