Vacation Policies in Canada by Province: Employer Guide
By Kate Vodopian Quick answer: Vacation entitlement in Canada depends on the employee’s province or territory, length of service, and whether they are federally or provincially regulated. In many jurisdictions, employees start with at least 2 weeks of vacation and 4% vacation pay, increasing to 3 weeks and 6% after a set period of service. There are important exceptions, including Quebec, Saskatchewan and Yukon.
Last reviewed: 1 June 2026.
Canada does not have one single vacation policy for every employee. Federal, provincial and territorial employment standards set different minimum rules for vacation time, vacation pay, timing and carry-over.
For employers, this matters because vacation rules affect payroll, leave balances, employee contracts, PTO policies and workforce planning.
This guide gives a practical overview of minimum vacation time and vacation pay rules across Canada. It is designed for small business owners, HR managers and operations teams who need to understand the basics before building or reviewing a company policy.
This article is general guidance only. Employment standards can change, and some employees may be covered by a collective agreement, employment contract or federal rules. Always check the official source for the province or territory before finalising a policy.
Vacation Entitlement in Canada — Quick Summary
| Jurisdiction | Common starting minimum | Later increase | Vacation pay |
|---|---|---|---|
| Federally regulated employees | 2 weeks after 1 year | 3 weeks after 5 years, 4 weeks after 10 years | 4%, then 6%, then 8% |
| Alberta | 2 weeks after each of the first 4 years | 3 weeks after 5 consecutive years | 4%, then 6% |
| British Columbia | 2 weeks after 1 year | 3 weeks after 5 years | 4%, then 6% |
| Manitoba | 2 weeks for the first 4 years | 3 weeks after 5 years | 4%, then 6% |
| New Brunswick | Up to 2 weeks / 1 day per month, depending on time worked | Up to 3 weeks / 1.25 days per month after more than 8 years | 4%, then 6% |
| Newfoundland and Labrador | 2 weeks | 3 weeks after 15 years | 4%, then 6% |
| Nova Scotia | 2 weeks | 3 weeks after 8 years | 4%, then 6% |
| Ontario | 2 weeks | 3 weeks after 5 years | 4%, then 6% |
| Prince Edward Island | 2 weeks | 3 weeks after 8 years with the same employer | 4%, then 6% |
| Quebec | 1 day per full month under 1 year, then 2 weeks | 3 weeks from 3 years of uninterrupted service | 4%, then 6% |
| Saskatchewan | 3 weeks after each year of employment | 4 weeks after 10 years with the same employer | 3/52 (~5.77%), then 4/52 (~7.69%) after 10 years |
| Northwest Territories | 2 weeks | 3 weeks starting with the sixth year of work | 4%, then 6% |
| Nunavut | 2 weeks after 1 year | 3 weeks after 5 years | 4%, then 6% |
| Yukon | At least 2 weeks after each completed year of work | No general statutory increase listed in basic guidance | 4% statutory minimum; no general statutory step-up in basic guidance |
Rules vary by province and territory, so employers should always check the official employment standards source before finalising a policy.
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Vacation Time vs Vacation Pay in Canada
Vacation time and vacation pay are related, but they are not the same thing.
| Term | Meaning |
|---|---|
| Vacation time | The time away from work that an employee is entitled to take. |
| Vacation pay | The money an employee earns for vacation, often calculated as a percentage of wages. |
| Vacation entitlement year | The 12-month period used to calculate vacation time and vacation pay. |
| Reference year | A term used in some jurisdictions, such as Quebec, to calculate vacation entitlement and vacation indemnity. |
| Length of service | How long the employee has worked for the employer, which can increase entitlement. |
| Vacationable earnings | The wages or earnings used to calculate vacation pay. The exact definition can vary by jurisdiction. |
For employers, both sides matter. A policy should explain how vacation is earned, how it is paid, when employees can take it, and how unused vacation is handled.
Important Payroll Caveat: Vacationable Earnings
Vacation pay is not usually calculated on base salary alone. In many Canadian jurisdictions, the vacation pay percentage is applied to wages, gross wages or “vacationable earnings” earned during the vacation entitlement year.
However, the exact definition of vacationable earnings varies by province, territory and employment standards.
| Earnings type | General treatment |
|---|---|
| Regular hourly wages or base salary | Usually included |
| Commissions | Often included as wages or gross earnings |
| Non-discretionary bonuses | Often included if they meet the jurisdiction’s definition of wages |
| Overtime pay | Included in some jurisdictions, but excluded in others |
| Public or statutory holiday pay | Included in some jurisdictions, but excluded in others |
| Tips and gratuities | Often excluded, but rules vary |
| Expenses and allowances | Often excluded |
| Previously paid vacation pay | Included in some jurisdictions, excluded or handled differently in others |
For example, British Columbia calculates vacation pay on all wages paid in the previous year. Quebec calculates vacation indemnity on gross wages earned during the reference year. Alberta is different: its vacation pay guidance says wages for vacation pay do not include overtime pay, general holiday pay, termination pay, unearned bonuses, tips, gratuities, expenses or allowances.
The safest approach is to define vacationable earnings carefully in payroll settings and check the official employment standards source for each province or territory.
Service Years vs Reference Years
Vacation entitlement is not only about the percentage of vacation pay. Employers also need to understand when vacation time is earned and when it must be taken.
In many jurisdictions, employees earn vacation during a vacation entitlement year, year of employment or reference year. They then become entitled to take that vacation after completing the year of employment or reference period.
| Term | What it means |
|---|---|
| Year of employment | A 12-month period starting from the employee’s hire date or anniversary date. |
| Vacation entitlement year | The period used to calculate how much vacation time the employee has earned. |
| Reference year | A term used in some jurisdictions, such as Quebec, to calculate vacation entitlement and vacation indemnity. |
| Taking vacation | The period when the employee actually uses the vacation time they have earned. |
The timing rules vary by jurisdiction.
| Jurisdiction example | Timing rule |
|---|---|
| Federally regulated employees | Vacation must generally begin no later than 10 months after completing each year of employment. |
| Ontario | Vacation must generally be completed no later than 10 months after the end of the vacation entitlement year. |
| British Columbia | Vacation must be taken within 12 months of being earned. |
| Alberta | Employees must take vacation sometime in the 12 months after they earn it. |
| Quebec | Vacation entitlement is linked to the reference year and years of uninterrupted service. |
For employers, the important point is to track both the earning period and the deadline for taking vacation. This helps avoid underpayment, unused vacation build-up and confusion when employees reach a higher service tier.
Federal vs Provincial Vacation Rules in Canada
Some employees are covered by federal labour standards, while most private-sector employees are covered by provincial or territorial employment standards.
Federally regulated employers may include sectors such as banking, telecommunications, interprovincial transportation and federal Crown corporations. Most small businesses follow the employment standards of the province or territory where the employee works.
| Area | Who it usually applies to |
|---|---|
| Federal labour standards | Federally regulated sectors such as banks, telecoms, interprovincial transport and some federal organisations. |
| Provincial or territorial standards | Most local businesses, retailers, restaurants, agencies, manufacturers, professional services and small employers. |
| Employment contracts and collective agreements | May give employees more generous vacation rights than the statutory minimum. |
If you are unsure which rules apply, check the official employment standards source or get legal advice.
Vacation Policies by Province and Territory
The sections below summarise the minimum vacation time and vacation pay rules commonly used by employers. They should be used as a starting point, not as a substitute for official employment standards advice.
Federally Regulated Employees
Federally regulated employees are covered by the Canada Labour Code rather than provincial employment standards.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| After 1 year with the same employer | 2 weeks | 4% of wages |
| After 5 consecutive years with the same employer | 3 weeks | 6% of wages |
| After 10 consecutive years with the same employer | 4 weeks | 8% of wages |
Federal rules also provide general holidays separately from annual vacation. Employers should make sure vacation time, vacation pay and general holiday pay are handled as separate items in payroll and leave records.
Alberta
In Alberta, employees must generally complete one year of employment before they are entitled to take annual vacation time.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| First 4 years of employment | 2 weeks | 4% |
| 5 consecutive years or more | 3 weeks | 6% |
Alberta has an important payroll detail: for the purpose of calculating vacation pay, Alberta’s definition of wages excludes overtime pay and general holiday pay. Employers should check Alberta’s official employment standards guidance before configuring payroll rules.
British Columbia
In British Columbia, vacation pay is based on wages paid in the previous year.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| After 1 year | 2 weeks | At least 4% of all wages paid in the previous year |
| After 5 years | 3 weeks | At least 6% of all wages earned in the previous year |
Vacation pay must usually be paid before the employee starts vacation, unless the employer and employee agree in writing that it will be paid on each paycheque.
Manitoba
In Manitoba, vacation entitlement increases after the employee completes 5 years of work with the same employer.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| First 4 years of employment | 2 weeks | 4% of gross wages |
| After 5 years | 3 weeks | 6% of gross wages |
For employers, the key point is to track the employee’s completed years of service accurately so the vacation balance and vacation pay rate increase at the correct time.
New Brunswick
New Brunswick uses a slightly different structure because vacation can be expressed as either a number of weeks or a number of days per month worked.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| Less than 8 years | The lesser of 1 day per month worked or 2 weeks per year | 4% of gross wages |
| More than 8 years | The lesser of 1.25 days per month worked or 3 weeks per year | 6% of gross wages |
Employees are generally entitled to take vacation after completing one year of service, and vacation must be provided within the required period under New Brunswick employment standards.
Newfoundland and Labrador
In Newfoundland and Labrador, the increase to 3 weeks comes later than in many other jurisdictions.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| Less than 15 years of continuous service | 2 weeks | 4% of gross wages |
| 15 years or more with the same employer | 3 weeks | 6% of gross wages |
Newfoundland and Labrador guidance says vacation pay is calculated on gross wages and can include items such as commissions and overtime. Employers should check the official labour standards guidance before applying payroll rules.
Nova Scotia
In Nova Scotia, employees generally move from 2 weeks to 3 weeks after 8 years of employment.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| Less than 8 years | 2 weeks | 4% of gross wages |
| 8 years or more | 3 weeks | 6% of gross wages |
Vacation pay applies to different types of employees, including full-time, part-time, seasonal and casual workers, subject to the rules in the Nova Scotia employment standards framework.
Ontario
In Ontario, employees earn vacation pay as they earn wages. Vacation time entitlement increases after 5 years of employment.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| Less than 5 years | 2 weeks | 4% of gross wages, excluding vacation pay |
| 5 years or more | 3 weeks | 6% of gross wages, excluding vacation pay |
Ontario distinguishes between vacation time and vacation pay. An employee may earn vacation pay even if they have not yet completed a full vacation entitlement year.
Prince Edward Island
In Prince Edward Island, the vacation entitlement increases after 8 years of continuous employment with the same employer.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| Less than 8 years | 2 weeks | At least 4% |
| 8 years or more with the same employer | 3 weeks | At least 6% |
Vacation pay is usually paid before the vacation begins, and employers should give employees clear notice of when vacation is scheduled.
Quebec
Quebec uses “uninterrupted service” to determine annual vacation entitlement. The increase to 3 weeks happens after 3 years of uninterrupted service, which is earlier than in many other Canadian jurisdictions.
| Length of uninterrupted service | Minimum vacation time | Vacation indemnity |
|---|---|---|
| Less than 1 year | 1 day per full month, up to 2 weeks | 4% of gross wages |
| 1 year to less than 3 years | 2 consecutive weeks | 4% of gross wages |
| 3 years or more | 3 consecutive weeks | 6% of gross wages |
Quebec is important for employers to check carefully because the 3-week vacation entitlement and 6% vacation indemnity apply from 3 years of uninterrupted service.
Saskatchewan
Saskatchewan is different from many provinces because employees start with 3 weeks of vacation after each year of employment.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| First 9 years with the same employer | 3 weeks | 3/52 of wages, about 5.77% |
| 10 years or more with the same employer | 4 weeks | 4/52 of wages, about 7.69% |
This is a key payroll difference. Employers should not apply the common 4% / 6% pattern to Saskatchewan. Saskatchewan uses 3/52 and 4/52 of wages instead.
Northwest Territories
In the Northwest Territories, employees earn 2 weeks of paid vacation for each full year of work, increasing to 3 weeks starting with the sixth year of work for the same employer.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| First 5 years | 2 weeks | 4% of total gross wages |
| Upon completion of the 5th year / starting with the sixth year | 3 weeks | 6% of total gross wages |
Northwest Territories guidance also notes that vacation pay can include total earnings, including overtime. Employers should check the official employment standards guidance for timing rules and payment requirements.
Nunavut
Nunavut’s basic annual vacation rules use the common 4% / 6% structure.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| After 1 year | 2 weeks | 4% of gross wages |
| After 5 years | 3 weeks | 6% of gross wages |
Employers should confirm timing and payment rules with the Nunavut Labour Standards Compliance Office before finalising a policy.
Yukon
Yukon’s basic employment standards guidance states that vacation pay is calculated as at least 4% of an employee’s gross wages, and vacation time is calculated as at least 2 weeks for every completed year of work.
| Length of service | Minimum vacation time | Vacation pay |
|---|---|---|
| After each completed year of work | At least 2 weeks | 4% statutory minimum |
Yukon does not list a general statutory increase to 3 weeks or 6% vacation pay in its basic vacation guidance. Employers can offer more generous vacation benefits in a contract or company policy, but the basic statutory minimum remains at least 2 weeks and at least 4%.
Employer Checklist for Vacation Policies in Canada
Before finalising a Canadian vacation policy, check the following:
| Check | Why it matters |
|---|---|
| Which province or territory applies? | Vacation rules vary across Canada. |
| Is the employee federally regulated? | Federally regulated employees follow federal labour standards. |
| How much vacation time has the employee earned? | Entitlement often increases with length of service. |
| What is the vacation entitlement year or reference year? | Employers need to know when vacation is earned and when it must be taken. |
| What earnings are vacationable? | Vacation pay is not always calculated on base salary alone. Check whether wages, commissions, bonuses, overtime, statutory holiday pay or other earnings are included in the applicable jurisdiction. |
| What vacation pay percentage or formula applies? | Many jurisdictions use 4% and 6%, but Saskatchewan uses 3/52 and 4/52, Quebec reaches 6% after 3 years, Yukon remains at least 4% in basic guidance, and federal rules include an 8% tier after 10 years. |
| When must vacation pay be paid? | Timing rules differ by jurisdiction. |
| Can unused vacation carry over? | Policies should explain expiry, carry-over and scheduling rules. |
| Are public holidays separate from vacation? | Public holidays and vacation entitlement are usually handled separately. |
| Are part-time, seasonal or casual employees covered? | Many employment standards rules still apply to non-full-time workers. |
| Is the policy written clearly? | Contracts and handbooks should explain vacation time, vacation pay and approval rules. |
A leave management system can help employers track vacation balances, approval rules and location-specific policies without relying on spreadsheets.
For broader leave reporting, sickness tracking and absence records, see our absence management software.
Public Holidays vs Vacation in Canada
Public holidays and vacation entitlement are usually separate concepts.
| Item | What it means |
|---|---|
| Vacation time | The employee’s annual paid time away from work. |
| Vacation pay | The money earned or paid for vacation time. |
| Public holidays / general holidays | Specific statutory holidays such as Canada Day, Labour Day or Christmas Day, depending on jurisdiction. |
| Company holidays | Extra closure days offered by the employer, if the company chooses to provide them. |
If your business operates across multiple provinces, it is worth using a holiday tracker alongside your vacation policy so employees receive the right public holidays for their location.
Handling Vacation Pay When Employment Ends
When employment ends, whether through resignation, dismissal or layoff, employers usually need to pay any earned but unpaid vacation pay in the employee’s final pay.
Employers should not treat statutory vacation pay as “use it or lose it”. If vacation pay has been earned and not yet paid, it normally has to be paid out when employment ends.
The deadline for paying final vacation pay depends on the jurisdiction.
| Jurisdiction | Final vacation pay deadline |
|---|---|
| Federally regulated employees | Within 30 days after the day employment ended |
| Saskatchewan | Previously unpaid vacation pay must be paid within 14 days of termination |
| Ontario | Within 7 days after employment ends, or on the next regular pay day, whichever is later |
| British Columbia | Within 48 hours if the employer ends employment; within 6 days if the employee quits |
| Alberta | Within 10 consecutive days after the end of the pay period in which termination occurred, or 31 consecutive days after the last day of employment |
Final pay rules can be strict, so employers should check the official employment standards source for the province, territory or federal standard that applies.
Payroll Warning: Final Wage Base Calculations
One of the most common configuration mistakes in final payroll is using the wrong wage base for vacation pay.
| Situation | Employer consideration |
|---|---|
| Employee works through a notice period | They usually continue earning wages during that period, so vacation pay may continue to accrue on those wages. |
| Employee receives termination pay instead of notice | The treatment varies by jurisdiction. In Ontario, vacation pay is payable on termination pay, but not on severance pay. |
| Employee has unused earned vacation pay | This normally needs to be paid out when employment ends. |
| Payroll system calculates vacation pay automatically | Check that the final pay run uses the correct jurisdiction, wage base and payout deadline. |
Do not assume final vacation pay is calculated the same way in every province or territory.
Some jurisdictions calculate vacation pay on broad “wages” or “gross wages”, while others exclude specific items. For example, Ontario calculates vacation pay on gross wages but excludes vacation pay itself, while Alberta excludes items such as overtime pay and general holiday pay from wages for vacation pay purposes.
For final payroll, employers should check:
- which earnings are vacationable
- whether termination pay is included
- whether severance pay is excluded
- whether previously paid vacation pay is included or excluded
- whether the employee has moved into a higher vacation tier
- the deadline for final payment
A leave management system can help keep vacation balances clear, but final payroll should always be checked against the official employment standards rules for the relevant jurisdiction.
Frequently Asked Questions
How much vacation do employees get in Canada?
Vacation entitlement depends on the province, territory or federal employment standard that applies. Many employees start with at least 2 weeks of vacation, with entitlement increasing after a set period of service.
What is vacation pay in Canada?
Vacation pay is the money an employee earns for vacation. It is often calculated as a percentage of wages, commonly 4% for 2 weeks of vacation and 6% for 3 weeks, although rules vary by jurisdiction.
Are vacation time and vacation pay the same thing?
No. Vacation time is time away from work. Vacation pay is the money earned or paid for that vacation time.
Is vacation pay calculated only on base salary?
Not usually. In many jurisdictions, vacation pay is calculated on wages, gross wages or vacationable earnings rather than base salary alone. However, the exact definition varies, so employers should check the applicable employment standards guidance.
Does vacation pay include overtime?
It depends on the jurisdiction. Some jurisdictions include overtime in the earnings used for vacation pay, while others exclude it. For example, Alberta excludes overtime pay from the wages used to calculate vacation pay.
When can employees take vacation in Canada?
This depends on the jurisdiction. In many cases, employees earn vacation during a vacation entitlement year, year of employment or reference year, and must take it within a set period after that year ends.
Do vacation rules differ by province?
Yes. Vacation rules differ across provinces and territories, so employers should check the employment standards rules for the location where the employee works.
What are the federal vacation rules in Canada?
Federally regulated employees are covered by federal labour standards. The federal rules include 2 weeks of vacation after 1 year, 3 weeks after 5 consecutive years, and 4 weeks after 10 consecutive years. Vacation pay is 4%, 6% or 8% depending on the entitlement.
Which province has the highest starting vacation minimum?
Saskatchewan is one of the more generous jurisdictions at the starting level because employees receive a minimum of 3 weeks of vacation after each year of employment.
Can employers offer more vacation than the legal minimum?
Yes. Employers can offer more generous vacation time or vacation pay than the legal minimum, as long as they still meet employment standards.
Do part-time employees get vacation pay?
In many jurisdictions, part-time employees still earn vacation pay. The exact rules vary by province or territory, so employers should check the applicable employment standards guidance.
Are public holidays included in vacation entitlement?
Usually no. Public holidays and vacation entitlement are generally separate. However, the way public holidays are handled can vary by jurisdiction and company policy.
How can employers track vacation across different provinces?
Employers can use absence management software to track vacation balances, approvals, public holidays and location-specific rules in one place.
Make Canadian Vacation Tracking Easier
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Further Reading
| Resource | Why it is useful |
|---|---|
| Canada.ca — Annual vacations and general holidays | Federal labour standards for vacations, vacation pay and general holidays. |
| Ontario — Vacation under the Employment Standards Act | Ontario vacation time and vacation pay rules. |
| British Columbia — Annual vacation | BC vacation entitlement and vacation pay guidance. |
| Quebec CNESST — Annual vacation | Quebec vacation length and vacation indemnity rules. |
| Alberta — Vacations and vacation pay | Alberta employment standards guidance on vacation pay and wage exclusions. |
| Saskatchewan — Vacations and Vacation Pay | Saskatchewan vacation entitlement and vacation pay rules. |
| Manitoba — Vacations and Vacation Pay | Manitoba employment standards guidance. |
| New Brunswick — Paid public holidays, vacation time and pay | New Brunswick vacation and vacation pay rules. |
| Newfoundland and Labrador — Your Rights at Work | Newfoundland and Labrador labour standards guidance. |
| Nova Scotia — Vacation Time and Vacation Pay | Nova Scotia vacation entitlement and vacation pay rules. |
| Prince Edward Island — Vacation and Vacation Pay | PEI vacation entitlement and vacation pay rules. |
| Yukon — Annual vacation pay and vacation time | Yukon employment standards guidance. |
| Northwest Territories — Employment Standards FAQ | Northwest Territories vacation and vacation pay guidance. |
| Nunavut Labour Standards Compliance Office — Annual Vacation and Vacation Pay | Nunavut annual vacation and vacation pay guidance. |
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