Time and Attendance
Canada Statutory Holiday Pay (2026)
By Staff Report
Apr. 15, 2026
Summary:
- Workers in Canada get statutory, or public, holidays off and receive pay based on a percentage of their wages earned over a 4-week period.
- If employees are required to work on a statutory holiday, they typically earn 1.5x their regular rate in addition to their holiday pay.
- Payroll software makes holiday pay calculations much more accurate and efficient.
Canadian employers need to know exactly how much they owe their staff during statutory holidays. While it seems straightforward, it can be challenging to track and implement and getting it wrong can lead to costly legal disputes.
A class action lawsuit was filed against banking giant BMO, alleging the company failed to calculate vacation and public holiday pay under the Canada Labour Code. According to the claim, variable compensation, such as commissions and bonuses, was not fully included in employee entitlements dating back to 2010.
Similar claims have been brought against other big Canadian companies. A proposed $800 million class action was filed against RBC Dominion Securities, while a separate $80 million case involved RBC Insurance and Aviva General insurance. Both centered on how holiday and vacation pay was calculated for commissioned employees.
Holiday pay rules
Workers in Canada are entitled to statutory paid holidays (also known on public and general holidays), along with compensation based on their recent earnings. However, calculations vary by province and territory. For example, in Ontario, public holiday is typically calculated as 1/20 of an employee’s regular wages earned in four weeks leading up to the holiday.
In many jurisdictions, certain types of variable compensation, such as commissions and bonuses, may be included in holiday pay calculations depending on how “wages” are defined locally. Overtime, on the other hand, is typically excluded but treatment can vary by province and territory.
Employees who work on a public holiday are generally entitled to additional compensation, such as premium pay (commonly time and a half) or a substitute day off with pay, depending on the applicable employment standards legislation.
Listed below are more details on statutory holiday pay, broken down by several provinces:
Manitoba
Statutory holidays recognized:
- New Year’s Day
- Louis Riel Day
- Good Friday
- Victoria Day
- July 1
- Labour Day
- Orange Shirt Day
- Thanksgiving Day
- Christmas Day
Holiday pay: Employees with non-variable hours receive holiday pay equal to 8 hours at their standard rate. For employees with variable hours, holiday pay is calculated at 5% of their gross wages (not including overtime) in the 4-week period immediately before the holiday.
If employees work: Most employees earn a premium pay of 1.5x their regular wage on top of their general holiday pay. An exception exists for hospitals, restaurants, hotels, and continuous operations as long as they provide another day off with general holiday pay within 30 days.
New Brunswick
Statutory holidays recognized:
- New Year’s Day
- Family Day
- Good Friday
- Canada Day
- New Brunswick Day
- Labour Day
- Remembrance Day
- Christmas Day
Holiday pay: Employees receive a day’s wages at the regular rate or 4% of their gross wages. If employees have variable hours, they receive an “average day’s pay” which is found by dividing their total number of hours worked by the number of days worked over a 30-day period before the holiday. You then multiply these hours by the regular rate. This calculation excludes overtime but includes vacation.
If employees work: Employees receive a regular day’s pay for a public holiday. If an employee’s wages vary, holiday pay is calculated as an average day’s pay based on all hours worked (excluding overtime) in the 30 days before the holiday.
Ontario
Statutory holidays recognized:
- New Year’s Day
- Family Day
- Good Friday
- Canada Day
- Victoria Day
- Boxing Day
- Labour Day
- Thanksgiving Day
- Christmas Day
Holiday pay: Under Ontario’s Employment Standards Act (ESA), public holiday pay is calculated as 1/20 of the regular wages earned in the four work weeks before the public holiday. This calculation excludes vacation pay and overtime pay.
If employees work: Employees are generally entitled to public holiday pay plus premium pay at 1.5 times their regular rate, or a substitute day off with public holiday pay, depending on the arrangement.
Quebec
Statutory holidays recognized:
- New Year’s Day
- Good Friday or Easter Monday (employer’s discretion)
- Canada Day
- National Patriot’s Day
- National Holiday
- Labour Day
- Thanksgiving
- Christmas Day
Holiday pay: Employees receive 1/20 of their wages from the 28 days prior to the holiday. Workers paid by commission receive 1/60 of their wages earned through a 12-week period. Overtime is not included in these calculations.
If employees work: Employees are paid their regular wages for hours worked and are also entitled to either the public holiday indemnity or a compensatory day off with pay.
Saskatchewan
Statutory holidays recognized:
- New Year’s Day
- Family Day
- Good Friday
- Victoria Day
- Canada Day
- Saskatchewan Day
- Labour Day
- Thanksgiving Day
- Remembrance Day
- Christmas Day
Holiday pay: Employees receive 5% of their wages from the 28 days before the holiday. This calculation includes both vacation and commission but not overtime.
If employees work: Employees receive 1.5x their regular rate for the day on top of the statutory holiday pay.
Calculating holiday pay
Holiday pay rules in Canada can get complex, with different formulas, exceptions, and requirements depending on the jurisdiction. To stay compliant, employers need to track employee time accurately and apply the right calculations.
While government resources can help with one-off calculations, managing this process manually can quickly become time-consuming, especially when reviewing multiple weeks of earnings to determine the correct holiday pay.
That’s where the right system can help. Payroll and time tracking systems automatically track hours worked and apply the appropriate holiday pay calculations, reducing the need for manual work.
Who should be working on public holidays?
Calculating mandated holiday pay is one thing – paying time and half to staff who work on a holiday is another. Labour hours on a holiday are quite an expense to take on and, if not planned correctly, can be unnecessary at times.
So how do you actually determine the number of staff you need on hand during a holiday?
The first step is to track your historical demand patterns consistently. By doing this, you’ll be able to project your expected demand for an upcoming holiday. Typically this is done by looking at last year’s holiday sales alongside other patterns like upcoming local events, promotions, and weather.
With an accurate demand prediction, you can then figure out the number of employees you’ll need on duty. Backing your staffing plan with actual metrics like this keeps you from accidentally overspending on expensive holiday labour. You should only be paying 1.5x rates to employees who are actually needed.
Managing demand forecasts and labour ratios can quickly add up in terms of time and effort. Fortunately, you don’t have to do it all manually. Labour forecasting software can simplify the process, helping reduce admin time and avoid unnecessary overtime costs.
Get it done efficiently
Once you know the basics, holiday pay is pretty simple to understand – you just need the right tools to improve accuracy, save time, and ensure HR compliance.
With an all-in-one HR, payroll, and scheduling platform like Workforce.com, you can record employee hours and automatically calculate holiday pay when the time comes. Complete with a labour forecasting module, you’ll also be able to predict how many staff you really need working those expensive holiday hours.
When a paid public holiday like New Year’s or Canada Day comes around, keeping your employees happy is more important than ever – this means abiding by national labour standards and paying them what they are legally owed. Get this done in the most efficient way possible while also improving your bottom line with Workforce.com.
Get in touch with us today to get started.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to compliance with the most current standards.
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