Glossary

What is Statutory holiday pay?

Statutory holiday pay is the wage owed to eligible employees for a public holiday, calculated by a formula set in each province’s employment standards law.

Every Canadian province and territory sets its own list of statutory (or general, or public) holidays and its own rules for paying them. Federally regulated employers follow the Canada Labour Code. Most jurisdictions have nine to ten holidays, but the lists differ: Family Day, Civic Holiday, Remembrance Day, Saint-Jean-Baptiste Day and Islander Day each apply in some places and not others.

The pay formula also differs. Ontario uses regular wages earned in the four weeks before the holiday plus vacation pay owed in that period, divided by 20. British Columbia uses an average day’s pay over the 30 calendar days before the holiday. Alberta uses an average daily wage based on the four weeks before. Many provinces require the employee to have worked a minimum period, or their last scheduled shift before and first after the holiday, to qualify.

Employees who work on the holiday are usually owed premium pay, often 1.5 times their regular rate for hours worked, plus holiday pay, or regular pay plus a substitute day off, depending on the province and the industry. Restaurants, retail and other businesses open on holidays need payroll that knows which formula and eligibility rule applies where each employee works, not a single company-wide setting.

Example

An Ontario employee earned $3,600 in regular wages in the four weeks before Canada Day, with no vacation pay in that period. Holiday pay = $3,600 ÷ 20 = $180. If they also work 8 hours on Canada Day at $22/hour, they can receive $264 premium pay (8 × $33) plus the $180, or regular pay plus a substitute holiday.

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