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Thursday, August 28, 2014

The vacation pay calculator can help calculate the amount of annual holiday pay owed to any employee.

To use the calculator:

  • 1. Enter the start and end dates of the anniversary year (or part year) forthe employee.
  • 2. Entertotal wages earned for the anniversary year (or part year).
  • 3. If employee has worked for 10 of more years, choose yes. If employee has worked for less than 10 year, choose no.
  • 4. Click on the calculate button

Start Date
End Date
Total Wages
Employed for 10 years or more?
Yes No
Vacation Pay Owed

The "calculator" is based on the following principles:

  1. Each anniversary year, an employee is entitled to 3 weeks of annual holiday pay. This increases to 4 weeks after 10 years of service.
  2. For those 3 (or 4) weeks entitlement, the employee gets 3/52nd or 4/52nd of their total wages for the 12-month anniversary year as their annual vacation pay. This amount is paid within 14 days of the employee taking their vacation.
    • An anniversary year means the day of the month the employee started to the same day 12 months later less one day. For example, if an employee started work on February 14, 1998, the individual anniversary date would be February 14 1998 to February 13, 1999. This anniversary date could also be a common anniversary year which means that the employer has chosen one common date for all employees (e.g. April to March 31).
    • Where an employee ceases employment before the end of a full year, annual holiday pay is calculated on the accumulated earnings to date. Where an employee starts to work part-way through the year, the employee earns 1.25 days of vacation days per month for that first year. Payment for those days are still based on 3/52nds of the total earnings for those months of work.
  3. If the employee takes 1 week at three different times, the employee receives 1/3 of the total vacation pay owed on each occasion.
  4. Total wages includes all salary, overtime, annual holiday pay, public holiday pay, commission, earned bonuses and any other payment for labour or personal services.

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