In Canada, vacation entitlement is set by the employment standards legislation of each province and territory, plus the federal Canada Labour Code for federally regulated employees. The starting minimum is two weeks of paid vacation after one year of service, increasing with longer service in most jurisdictions, plus a vacation pay percentage of gross earnings.

Statutory entitlement

Generally two weeks of paid vacation after one year of service, rising to three weeks after a longer period (varies by jurisdiction). Vacation pay of 4% of gross wages for two weeks, 6% for three weeks.

Eligibility

Most jurisdictions grant vacation pay from the first day of employment, with the right to take vacation time accruing after a completed year of service.

Employer obligations

  • Provide at least the minimum vacation time set by the applicable jurisdiction (most commonly two weeks rising to three after five or six years).
  • Pay vacation pay at the statutory minimum percentage (4% rising to 6% in most provinces) on gross wages, including overtime and most bonuses.
  • Schedule vacation within 10 to 12 months of accrual depending on jurisdiction.
  • Pay accrued vacation pay on termination of employment.
  • Keep vacation records as required by the applicable employment standards legislation.

Employee rights

  • Right to vacation pay calculated on gross earnings, not just base salary.
  • Right to take vacation in unbroken weekly blocks unless the employee agrees otherwise.
  • Right to receive notice of scheduled vacation in advance (typically two weeks, varies by jurisdiction).
  • Right to vacation pay on termination, regardless of whether vacation time was taken.

Common pitfalls

  • Treating Canadian vacation rules as uniform — they vary materially between Ontario, BC, Alberta, Quebec, the federal jurisdiction, and others.
  • Calculating vacation pay only on base salary instead of total gross earnings.
  • Failing to provide the increased entitlement (typically three weeks after five years in Ontario, six years in some other provinces).
  • Allowing vacation to roll over indefinitely — most jurisdictions require it to be taken within 10–12 months of accrual.

Two weeks rising to three

In most provinces and the federal jurisdiction, the basic entitlement is two weeks of paid vacation after one year, rising to three weeks after five years (Ontario, federal, BC, Alberta) or six years (Quebec, Manitoba). Saskatchewan starts at three weeks rising to four. Always check the applicable provincial Act.

Vacation pay percentages

Vacation pay is calculated as a percentage of gross wages: 4% for the two-week minimum, 6% for three weeks, and 8% for four weeks. Vacation pay is owed even on terminated employment for any earned but untaken portion.

Federal vs provincial coverage

Federally regulated employees (banks, telecom, interprovincial transport, federal Crown corporations) follow the Canada Labour Code Part III. All other employees follow the employment standards legislation of their province or territory.

Frequently asked questions

How much vacation do Canadian employees get?

The starting minimum is two weeks of paid vacation after one year of service in most jurisdictions, rising to three weeks after five or six years. Vacation pay is 4% of gross wages, rising to 6%.

Is vacation pay separate from vacation time?

Yes. Vacation time is the right to be away from work; vacation pay is the wages paid during that time, calculated as a percentage of gross earnings. Both are statutory rights.

Do Canadian vacation rules vary by province?

Yes. Federal jurisdiction and each province set their own rules for accrual, the trigger for the next tier of entitlement, scheduling notice, and carry-over. Always check the Act applicable to the employee's workplace.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.