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7 Different ways for calculating the Public Holiday Pay in Ontario

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7 Different ways for calculating the Public Holiday Pay in Ontario

As stated in the Employment Standards Act (ESA) , it is mandatory for most employers to provide their employees with a day off work with pay, for all public holidays or ‘stat holiday pay’. There are some occupational categories that are exempt of this rule.

List of the nine public holidays in Ontario:

Throughout the year, these are the nine days deemed eligible by ESA for holiday pay:

  1. New Year’s Day
  2. Family Day
  3. Good Friday
  4. Victoria Day
  5. Canada Day
  6. Labour Day
  7. Thanksgiving Day
  8. Christmas Day
  9. Boxing Day

Regardless of any compulsion, employers can also provide additional days off on days like Easter Sunday, Easter Monday, Civic Holiday and Remembrance Day.

Eligibility for Holiday Pay:

Any employee whether full time, part time, permanent or on a term contract, are eligible for getting the holiday pay as of their hire date. However, the employee must have worked before and after the public holiday to receive the pay, as stated in Last and First Rule.

The 7 ways for calculating the Holiday Pay:

Prior to calculating the holiday pay, you’ll need to determine the situation applicable for your employee. The seven different possibilities are:

  1. Regular work schedule: The typical case when the salaried employee works the regular work days before and after the public holiday as per their regular work schedule.
  • Regular wages earned ÷ the number of days worked in the pay period before the public holiday
  1. Irregular work schedule: The case where the hourly paid employees work in their schedule (no set hours) before and after the public holidays.
  • Regular wages earned for the hours worked ÷ the number of days worked in the pay period before the public holiday
  1. Currently on vacation or personal emergency leave: In the case the employee has taken an immediate leave after the public holiday.
  • Regular wages earned in the pay period before the vacation ÷ the number of days worked in the pay period before the vacation
  1. Newly appointed: If the employee was not appointed before the public holiday and pay is calculated using the pay period of the public holiday.
  • Regular wages earned during the pay period that includes the holiday ÷ the number of days worked in the pay period that includes the holiday
  1. On Temporary Layoff: If the salaried employee is on a temporary layoff during the public holiday
  • Entitled $0 for the holiday pay
  1. Public holiday pay plus premium: The case when the employee has agreed in writing or electronically to work on a public holiday without taking leave on a substitute day.
  • Holiday Pay: Regular wages earned ÷ the number of days worked in the pay period before the public holiday
  • Premium Pay: (Regular wages earned x 1.5) x hours worked
  1. Substitute holiday: The case when the employee has agreed in writing or electronically to work on a public holiday and taking a day off in another working day.
  • Regular wages earned ÷ the number of days worked in the pay period before the substitute holiday day off

It is always a good idea to get help from an HR Expert to ensure that you are calculating the holiday pay correctly.