Holiday entitlements in Canada

In Canada, all employees are entitled to two weeks of paid holidays (annual leave) per year, either taken or received. This means that an employee can either take the two weeks off with pay, or get paid for two weeks more than he or she actually worked. After six years of employment with the same employer, an employee will be entitled to three weeks of paid vacation annually.

Vacation pay is calculated as a percentage of the gross wages an employee earns during the each year of employment. Where the vacation entitlement is two weeks, vacation pay is four percent of earnings in the entitlement year; where the entitlement is three weeks, the vacation pay is six percent of earnings.

You may not receive a full two week entitlement in your first year with a Canadian company; if you don't work a full calendar year at a company, holiday pay is calculated on a pro rata basis. Though not required by law, many employers increase holiday time allowance in an employee’s third year with a company. This is dependent on the company and may be something to ask about when negotiating your salary package. Keep in mind that not all employers will allow unused holiday time to roll over into the next year. Some employers will allow you to carry over a maximum percentage of your holiday time to the next year, though this is not required by Canadian law.

Depending on the province, there are an additional six to 10 paid public holidays offered each year. Most local governments, banks, businesses and schools are also closed on these days, and these days may not be given on the actual day they fall, as is the case on ones that fall on weekends, in which case they may be given a day late or a day early to create a three-day weekend.