Vacation Pay in Ontario: Time, Percentage, Timing, and Termination

In Ontario, vacation TIME is 2 weeks a year under 5 years of employment and 3 weeks at 5 or more years, and vacation PAY is a percentage of your gross wages, at least 4 per cent under 5 years and at least 6 per cent at 5 or more years, not a flat amount tied to your regular pay rate.

Information last verified on 2026-09-24. This article has not yet been reviewed by a licensed lawyer.

This article addresses vacation time and vacation pay for employees covered by Ontario's Employment Standards Act, 2000, SO 2000, c 41 (ESA). It does not cover federally regulated employees, who fall under the Canada Labour Code instead; see Federally Regulated Employees in Canada. It also does not cover other provinces and territories, where the vacation-time thresholds and percentages differ; see the Statutory Holidays in Canada hub for the comparison table. For Ontario's separate statutory public holiday rules, see Statutory Holidays in Ontario.

Vacation Time: 2 Weeks Under 5 Years, 3 Weeks After

Vacation time in Ontario is tied to length of employment, not to a fixed calendar amount for everyone. The Ministry of Labour's guide to the ESA states:

"Employees with less than five years of employment are entitled to two weeks of vacation time after each 12-month vacation entitlement year. Employees with five or more years of employment are entitled to three weeks of vacation time."

This entitlement runs against a vacation entitlement year, which is either the standard 12-month period starting on your date of hire, or an alternative 12-month period your employer sets instead. When an employer switches to an alternative year, the gap between the old and new start dates becomes a pro-rated stub period, and your vacation entitlement for that stub period is prorated accordingly.

Completing the full entitlement year, or the stub period where one applies, matters for vacation time specifically:

"An employee who does not complete either the full vacation entitlement year or the stub period (if any) does not qualify for vacation time under the ESA. However, employees earn vacation pay as they earn wages."

In other words, leaving partway through the year can cost you the vacation TIME entitlement for that year, but it does not cost you the vacation PAY you have already earned on your wages up to that point.

Vacation Pay: 4 Per Cent or 6 Per Cent of Gross Wages

Vacation pay is calculated as a percentage of what you earned, not as your regular daily or weekly rate multiplied by your vacation days. The guide sets the minimum rates:

"Vacation pay must be at least four per cent of the gross wages (excluding any vacation pay) earned in the 12-month vacation entitlement year or stub period... for employees with less than five years of employment. Employees with five or more years of employment at the end of a 12-month vacation entitlement year or stub period... are entitled to at least six per cent of the gross wages earned."

The wage base for this calculation is your gross wages for the entitlement year or stub period, excluding any vacation pay itself. Employers can pay more than these minimums, but not less.

Illustrative example (not a real case; round numbers for clarity): if you earned $50,000 in gross wages during your vacation entitlement year and have less than 5 years of employment, your minimum vacation pay for that year is 4 per cent of $50,000, or $2,000. If you had reached 5 years of employment by the end of that same entitlement year, the minimum rises to 6 per cent of $50,000, or $3,000. These figures follow the ESA percentages directly; your actual gross wages and entitlement year will differ.

When Vacation Pay Must Be Paid

The default timing rule is a lump sum, paid ahead of the vacation itself:

"In most cases, the vacation pay earned during a completed vacation entitlement year or stub period must be paid to an employee in a lump sum sometime before they take the vacation time earned."

The guide describes a small number of situations where a different timing applies instead of the lump-sum default:

• Vacation taken in periods of less than one week can be paid on or before the pay day covering that period, rather than as a single lump sum.
• If you agree electronically or in writing, your employer can pay your vacation pay on an accruing, pay-as-you-go basis with each pay cheque instead of a lump sum, subject to wage-statement disclosure rules, with a top-up mechanic if you cross the 5-year threshold partway through the year.
• You and your employer can agree to some other timing for payment.
• If your employer pays wages by direct deposit, your vacation pay must be paid on or before the pay day covering the vacation period.

Vacation Pay When Employment Ends

Ending your job does not erase vacation pay you have already earned. The guide states:

"When employment ends..., an employee is entitled to vacation pay that they have earned and that has not yet been paid... Vacation pay is payable on termination pay but not on severance pay. The unpaid vacation pay must be paid within seven days of the employment ending or on what would have been the employee's next pay day, whichever is later."

Whether the 4 per cent or 6 per cent rate applies to your final, partial vacation period depends on whether you had already reached the 5-year mark before or during that period. For the broader rules on what an employer owes you when a job ends in Ontario and elsewhere in Canada, see Final Paycheck Deadlines in Canada and Termination Pay in Ontario.

Where to Complain

Ontario's Ministry of Labour, Immigration, Training and Skills Development is the government body responsible for the ESA. Under ESA s.96(1), a person alleging a contravention may file a complaint with the Ministry in a written or electronic form approved by the Director. Under s.96(3), a complaint about a contravention that occurred more than two years before the complaint was filed is deemed not to have been filed. For the province's general employment standards, see Employment Standards in Canada.

Disclaimer: This article provides general information about vacation time and vacation pay under Ontario's Employment Standards Act, 2000, SO 2000, c 41, based on the Ontario Ministry of Labour, Immigration, Training and Skills Development's published guide to the Act (footer-dated July 8, 2024), current as of September 2026. It is not legal advice. It does not cover federally regulated employees or other provinces or territories. Consult Ontario's Ministry of Labour or a lawyer licensed in Ontario for advice on your specific situation.