Vacation Pay by Province (2026): 4%, 6% and When It Goes Up

Vacation pay in Canada starts at 4% of your gross wages in most of the country, and the law raises it to 6% after a set number of years. That number depends on where you work: 3 years in Quebec, 5 in Ontario, 8 in New Brunswick and 15 in Newfoundland and Labrador. In Yukon, it never goes up.

Vacation pay and vacation time are separate rights. In most provinces, you start earning the money from your first day, even part-time, and you keep it if you quit or get fired. The time off usually comes after a full year.

How much vacation pay does each province require?

Each rate comes with time off: in most of Canada, at least 2 weeks at 4% and 3 weeks at 6%. Saskatchewan starts at 3 weeks and 5.77%. These are minimums, so a contract can give you more, but not less. If you’re in a union, your collective agreement can set its own rules. Each name links to its official source, and a star means there’s a detail under the table.

The stars:

• Alberta: If you’re paid by the month, each week of vacation pays your monthly wages divided by 4⅓ instead of a percentage. When the job ends, the percentage applies to your wages from the unfinished year.
• Newfoundland and Labrador: You get the time off only if you worked at least 90% of your normal hours over the 12 months you earned it in. Otherwise you get the money and no right to the time.
• Nova Scotia: The province says the 6% starts once you’ve completed 7 years, and the third week once you’ve completed 8. Its Labour Standards Code (opens in a new tab) says “more than eight years” for both.
• Prince Edward Island: The 5-year rule took effect on June 30, 2026 (opens in a new tab), replacing 8 years.
• Quebec: With under 1 year of service on April 30, you get 1 day off per month of service, up to 2 weeks. The Quebec section below has the details.

Banks, airlines, telecom companies, interprovincial railways and trucking companies, and other federally regulated employers (opens in a new tab) come under the federal row, wherever you live. A bank teller in Quebec reaches 6% at 5 years, not 3.

Some jobs have their own rules. Many provinces leave out licensed professionals and some commission salespeople, such as real estate agents. Construction workers in Alberta get 6% from the start (opens in a new tab), with no right to time off, and Quebec’s construction industry has its own system, also covered below.

Does vacation pay go up after 5, 10 or 15 years?

Usually only once. In Ontario, British Columbia, Alberta and Manitoba, it goes from 4% to 6% at 5 years, and the law doesn’t raise it again at 10, 15 or 20 years. In federally regulated jobs, the rate goes up a second time at 10 years, to 8%. Saskatchewan’s only increase, to 7.69%, also comes at 10 years, and Newfoundland and Labrador’s comes at 15.

Anything above that is up to your employer. Ontario’s guide gives the example of a contract with “four weeks’ vacation, with eight per cent of gross earnings” (opens in a new tab), and a promise like that is enforceable.

The year your rate goes up

In Ontario (opens in a new tab), Quebec (opens in a new tab), British Columbia (opens in a new tab) and Manitoba (opens in a new tab), the higher rate covers the whole year in which you reach the milestone. So if your vacation pay comes on each cheque, you’re owed a one-time 2% top-up on your earlier wages that year. On $40,000 of earlier wages, that’s $800.

Federally regulated jobs may work differently. The Labour Program’s calculator (opens in a new tab) applies the higher rate only to wages earned after your anniversary.

What does vacation pay come to in dollars?

Multiply your gross wages for the year by your rate. On $50,000 of wages, 4% is $2,000 and 6% is $3,000. Canada’s average weekly earnings (opens in a new tab) were $1,354.55 in August 2026, or about $70,400 a year, so 4% would be about $2,800. These amounts are before tax.

If you’re paid by the hour

You’ll see one of two setups. Your employer holds the money and pays it when you take time off, or adds it to each cheque as you earn it. At $20 an hour for 20 hours a week, 4% is $16 a week, or $832 a year.

If it’s added to each cheque, you’ve already had the money, so your week off comes with no pay. Manitoba’s fact sheet (opens in a new tab) says employees still get the time off, but “they do not receive any additional vacation pay while they are off.”

If you’re on salary

Your vacation pay is usually your salary continuing while you’re off, not 4% on top of it. British Columbia’s guide (opens in a new tab) says salary paid during a vacation “is considered to be vacation pay”, and it has to equal at least 4% or 6% of your gross earnings.

You can be owed more if you earn more than your base salary. In Ontario, vacation pay itself doesn’t count as wages, so by our math, two weeks’ pay on a $52,000 salary is $2,000, which equals 4% of the $50,000 you earned while working. Add $5,000 in commission or overtime, and 4% comes to $2,200, so $200 more is owed (opens in a new tab). Quebec and federally regulated jobs do count it as wages, so work out your percentage on all your gross pay and compare that with what you got for your time off.

What counts as wages for vacation pay?

Usually all your gross pay for work, including commissions and earned bonuses. A bonus given as a gift, expense repayments and benefit payments don’t count. Provinces differ on these:

• Overtime counts except in Alberta (opens in a new tab) and Manitoba (opens in a new tab). New Brunswick, Prince Edward Island, Yukon and Nunavut don’t mention it, so we’re inferring from their laws that it counts.
• Stat holiday pay counts except in Alberta, New Brunswick (opens in a new tab) and, since June 30, 2026, Prince Edward Island (opens in a new tab). Newfoundland and Labrador’s Act (opens in a new tab) isn’t clear. Yukon doesn’t mention it, so we’re inferring from its law that it counts.
• Tips count only in Quebec (opens in a new tab), if they’re reported or attributed to you. Manitoba’s Code doesn’t mention them, and every other jurisdiction excludes them.
• Termination pay counts in British Columbia, Ontario (opens in a new tab), Nova Scotia, the Northwest Territories and Nunavut. It also counts in Quebec, under a court decision about a business closure (in French) (opens in a new tab). It doesn’t count in Alberta, Manitoba, Saskatchewan (opens in a new tab) or federally regulated jobs (opens in a new tab). Ontario’s separate severance pay doesn’t count.
• Last year’s vacation pay also counts, which adds a little, in British Columbia, Alberta, Saskatchewan, Quebec, the territories and federally regulated jobs. Ontario, Manitoba, New Brunswick, Nova Scotia and Prince Edward Island leave it out. Newfoundland and Labrador’s Act isn’t clear.

When is vacation pay due?

Usually before your vacation starts, and the deadline depends on where you work. A few provinces let it wait until a payday during or after your time off.

• At least 7 days before: British Columbia (opens in a new tab).
• Within the 14 days before: federally regulated jobs (opens in a new tab), or the regular payday during or just after your vacation if paying sooner isn’t practical or that’s the established practice at your workplace.
• By the day before: Manitoba, New Brunswick, Nova Scotia, Newfoundland and Labrador, Yukon, the Northwest Territories and Nunavut.
• Before it starts, or with your regular pay: Quebec (opens in a new tab).
• Before it starts, or by the payday for the period it falls in: Ontario (opens in a new tab), where the second option applies if you’re paid by direct deposit.
• Before it starts only if you ask: In Alberta (opens in a new tab), your employer has to pay at least a day before if you ask, and can otherwise pay by the next payday after your vacation starts. In Saskatchewan (opens in a new tab), unless you ask, your employer can pay on your normal payday.
• After it ends: Prince Edward Island’s Act (opens in a new tab) says by the last day of the next pay period after your vacation. The province’s own page (opens in a new tab) still says a day before, and it says the Act prevails.

Can your employer add vacation pay to every cheque?

That depends on where you work too, so it’s worth checking if you see vacation pay on every stub.

• Yes: Alberta (opens in a new tab), Manitoba, Nova Scotia (opens in a new tab) and Newfoundland and Labrador (opens in a new tab). The last two require your employer to tell you clearly.
• Only with an agreement: Ontario (opens in a new tab) requires your written or electronic agreement, and the amount has to appear separately on your pay statement. British Columbia requires a written agreement or a collective agreement.
• Only in some jobs: Quebec (opens in a new tab) allows it for seasonal or intermittent work, or under a collective agreement or decree. Prince Edward Island allows it only if you choose it in writing and you work under 90% of standard hours or for less than a year.
• Not addressed: The laws in New Brunswick, Saskatchewan, the territories and federally regulated jobs don’t set out this option.

How to check your pay stub

1. Find the line. “Vacation pay”, “Vac pay” or “VAC” with an amount this period means you’re being paid now. An “accrued” or “balance” figure is money you’re still owed.
2. Work out your rate. If it’s on each cheque, divide that line by the wages on the same stub. On $2,000 of wages, 4% is $80.
3. Use your stubs for the year, not your T4. Box 14 (opens in a new tab) lumps vacation pay in with your other pay.
4. Ask for the record if it doesn’t add up. Alberta (opens in a new tab) lets you ask for a detailed statement of how your earnings were calculated, and Ontario (opens in a new tab) lets you ask in writing for your vacation record after the year ends.

Do you get vacation pay if you quit or get fired?

Yes. Vacation pay you’ve earned and haven’t received is owed when the job ends, whatever the reason, and that includes being fired for cause. Ontario’s ministry says an employer “cannot reduce or eliminate vacation pay” (opens in a new tab) to make up for an employee’s incompetence. Quebec’s labour standards board, the CNESST, says the reason doesn’t matter (opens in a new tab).

You get it even if you worked less than a year. The only minimums are more than 5 calendar days (opens in a new tab) in British Columbia, 14 days (opens in a new tab) in Yukon and 5 consecutive work days (opens in a new tab) in Newfoundland and Labrador. A temporary layoff is different. In Quebec, your employer doesn’t have to pay it (opens in a new tab) unless your vacation was scheduled during the layoff.

Filing is free. Your employment standards office enforces these minimums, and some can recover vacation pay from further back than the filing deadline: 2 years in Alberta (opens in a new tab) and the Northwest Territories (opens in a new tab), 22 months (opens in a new tab) in Manitoba and 24 months (opens in a new tab) in federally regulated jobs. If you’re in a union, you’ll usually go through your grievance process instead. Filing in Ontario has a catch: a claim for termination or severance pay stops you from suing over the same termination, and a vacation pay claim stops you from suing for that same vacation pay. Our severance guide has more on the first.

In the United States? Our US guide covers whether each state makes employers pay out unused PTO.

Can you lose vacation pay if you don’t take the time off?

Not the money, as long as you claim it within the deadlines above. A contract or a use-it-or-lose-it policy can’t take away the legal minimum. Extra days above the minimum are a matter for your contract. The time off is different, because your employer has to give it within a set period, and you usually can’t swap it for cash.

How long your employer has to give the time off, counted from the end of the year you earned it in:

• 4 months: New Brunswick (by October 31, since its vacation year ends June 30) and Prince Edward Island.
• 6 months: the Northwest Territories, where the vacation has to start by then.
• 10 months: Ontario, Manitoba, Nova Scotia, Newfoundland and Labrador, Yukon, Nunavut and federally regulated jobs. In Yukon, Nunavut and federal jobs, the vacation only has to start by then.
• 12 months: British Columbia, Alberta, Saskatchewan and Quebec.

Your employer usually has the final say on dates. Ontario’s ministry (opens in a new tab) says an employee has no right to take a vacation “on their own initiative”, and Quebec (opens in a new tab) requires 4 weeks’ notice of your dates.

Can you get paid instead of taking the time off?

Only in some places, and usually with someone’s sign-off.

• No route: British Columbia (opens in a new tab) says employees “cannot skip taking vacation time and just receive vacation pay.” Alberta, Manitoba and New Brunswick offer no way to do it.
• Banned, with exceptions: Quebec (opens in a new tab) allows it only under a collective agreement or decree, or for the third week if your workplace closes for two weeks and you ask.
• With a written agreement: federally regulated jobs (opens in a new tab), for a specified year, and Yukon (opens in a new tab).
• With government approval: Ontario (opens in a new tab), if your employer agrees and the Director of Employment Standards approves. The Northwest Territories (opens in a new tab) and Nunavut (opens in a new tab) need an officer’s approval for exceptional circumstances.
• If you work under 90% of your usual hours: Nova Scotia and Prince Edward Island let you give up the time in writing.
• If you don’t take it: Saskatchewan (opens in a new tab) requires your employer to pay you within 11 months of when you earned it.

Is vacation pay taxed?

Yes. Vacation pay is regular employment income (opens in a new tab), so income tax, CPP (QPP in Quebec) and EI come off it, plus QPIP in Quebec. There’s no special tax rate for vacation pay. Your final tax depends on your total income for the year.

Why a payout can look heavily taxed

When you’re paid vacation pay without taking the time off, the CRA tells employers to withhold income tax as they would on a bonus (opens in a new tab). That method works out the tax on the whole payment as if it sat on top of a full year’s income. In one CRA example using 2025 Alberta tables, someone earning $600 a week has $46 of income tax withheld from a regular cheque, and $65 from a $300 bonus. Our guide to tax on a bonus shows how much of a $5,000 bonus you keep in each province.

If too much was withheld, you can get it back (opens in a new tab) when you file your return, depending on your income for the year. If your employer agrees to send part of a payout directly to your RRSP or FHSA, and you have room, less income tax comes off up front (opens in a new tab). Revenu Québec (opens in a new tab) has its own withholding method for Quebec income tax.

How does vacation pay work in Quebec?

Quebec looks at your service on April 30, the end of its reference year, which runs from May 1 to April 30 (opens in a new tab) unless an agreement or decree sets another date. With under 3 years of service that day, you get 4% of your gross pay for the year. At 3 years, you get 6% on the whole year, including what you earned before your anniversary.

Nothing changes after that (opens in a new tab), including at 10 years. The exception is Quebec’s clothing industry (opens in a new tab), where the minimums are higher: 3 weeks and 6% from 1 year, 4 weeks and 8% from 3 years. Clothing store staff aren’t included. Time off for sickness or an accident (up to 26 weeks), maternity (up to 18) or paternity (up to 5) doesn’t cut your vacation pay. Parental leave doesn’t get this protection.

A change may be coming. Quebec’s new government wants to raise the minimum to three weeks (opens in a new tab), and one report says that would apply after one year of work (in French) (opens in a new tab). As of November 6, 2026, there’s no bill or start date, so the table above still applies.

Construction workers and the CCQ

Quebec construction workers get 13% of their wages, and only part of that is vacation pay: 6% for vacation, 5.5% for statutory holidays and 1.5% for sick leave (opens in a new tab). Employers send the money to the Commission de la construction du Québec each month, and the CCQ pays it out twice a year.

• June 19, 2026: the summer payment (opens in a new tab).
• November 25, 2026: the winter payment, by deposit to the account in your file as of October 25, or by a cheque mailed from November 25. Statements appear gradually in your online file from November 6.
• 2027: the CCQ’s calendar (opens in a new tab) shows June and November, with no exact day yet.

The winter construction holiday runs from December 20, 2026, to January 2, 2027, and the summer one from July 25 to August 7, 2027. If your statement shows money as “not collected”, your employer hadn’t sent it when the statement was made, so check your online file first. To keep your right to the CCQ’s fund for workers whose employer can’t pay, file a wage complaint within 60 days from July 1 or December 1 (opens in a new tab).

Where to put vacation pay that comes on each cheque

It’s part of your regular pay, so it’s easy to spend, and then the week off has no pay. Moving it to savings as it comes in covers that week. In the part-time example above, $16 a week comes to $832 by the end of the year.

Lodavo can make that easier to stick with. Connect your savings or chequing account to the free app, and the more you have in it, the more free tickets you get for a weekly cash draw. Someone wins at least $100 every week. Your money stays in your account, so it’s there when your vacation comes.

Download Lodavo free on the Apple App Store (opens in a new tab) or Google Play Store (opens in a new tab).

This article is general information, not legal or tax advice. Your employment standards office can tell you how these rules apply to your job.

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