How vacation pay is estimated
Vacation pay = gross wages × vacation percent. 4% of wages is about 2 weeks on a 52-week year (2 ÷ 52 ≈ 3.85%, rounded to 4% in most employment standards). 6% is about 3 weeks. Some jobs pay vacation as time off instead of a cash percent. This page does not apply a specific province's rules. Ontario, for example, generally uses 4% until five years of service, then 6%. Confirm with your employment standards office or contract.
This is an estimate of gross vacation pay, not net pay and not tax advice.
Worked example
On $52,000 of wages, 4% vacation pay is $2,080. That is the usual two-week statutory percent (2 ÷ 52). At 6% the same wages are $3,120, about three weeks.
Ontario generally moves from 4% to 6% after five years with the same employer. Some union contracts pay more from day one. Vacation percent is often calculated on gross wages including overtime. This is not a net-pay figure.
Common questions
Is vacation pay on overtime too?
Often yes — vacation percent is usually applied to gross wages including overtime. Use the total you were paid in the period.
Do I get both time off and 4%?
Usually one or the other, or time off that is paid. Your contract or provincial rules decide. This tool only multiplies wages by a percent.
When does 6% start?
In several provinces, after five years with the same employer. Some contracts are more generous from day one.