Quick answer: Multiply eligible gross wages by 4% if you have less than five years of employment, or by 6% after five years of employment. Use the chart below for a quick estimate.
Ontario Vacation Pay Formula
Less than five years: eligible gross wages × 0.04
Five years or more: eligible gross wages × 0.06
Example: $2,000 in eligible gross wages × 4% = $80 vacation pay.
Ontario Vacation Pay Calculator Chart
| Eligible gross wages | Vacation pay at 4% | Vacation pay at 6% |
|---|---|---|
| $500 | $20 | $30 |
| $1,000 | $40 | $60 |
| $2,000 | $80 | $120 |
| $5,000 | $200 | $300 |
| $10,000 | $400 | $600 |
| $25,000 | $1,000 | $1,500 |
| $50,000 | $2,000 | $3,000 |
Who Generally Receives 4%?
An employee with less than five years of employment generally earns vacation pay of at least 4% of eligible gross wages earned during the vacation-entitlement year or stub period.
Who Generally Receives 6%?
After completing five years of employment, an employee generally earns vacation pay of at least 6% of eligible gross wages.
What Wages Are Included?
The calculation is based on gross wages defined by Ontario employment standards. This can include more than ordinary hourly earnings. Vacation pay itself is excluded from the wage base. Special circumstances can affect which payments are included, so compare your payroll records with the official Ontario guidance.
Vacation Time and Vacation Pay Are Different
Vacation time is the job-protected time away from work. Vacation pay is the money earned for vacation. The percentage calculation does not by itself show how many vacation days you can take or when they must be scheduled.
Worked Examples
Example 1: Less than five years
A worker has $12,500 in eligible gross wages. At 4%, estimated vacation pay is $500.
Example 2: Five years or more
A worker has $12,500 in eligible gross wages. At 6%, estimated vacation pay is $750.
Check Your Pay Statement
- Find the gross wages for the relevant pay period.
- Confirm whether the applicable rate is 4% or 6%.
- Multiply gross wages by 0.04 or 0.06.
- Compare the result with vacation pay shown on the wage statement.
- Keep pay stubs, schedules and employment records if amounts do not match.
Related Ontario Pay Tools and Guides
- Complete Ontario vacation-pay guide
- Ontario overtime-pay calculator and chart
- Ontario pay-stub requirements
- Ontario wage-deduction rules
Source and update note: The 4% and 6% minimum rates were checked against Ontario’s Employment Standards Act guidance in September 2026. Verify current rules in the official Ontario vacation guide. This tool provides a general estimate, not legal or payroll advice.