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How to Calculate Holiday Pay for Part-Time Employees in Ontario?

· 3 min read
Séraphin Vandegar

Public holidays are a right for employees in Ontario, whether they work full-time or part-time. But how can you ensure the correct calculation of holiday pay for a part-time employee? If you are an employer or HR manager, here is a clear guide to help you comply with Ontario’s Employment Standards Act (ESA).

What Are the Public Holidays in Ontario?

Ontario recognizes 9 public holidays each year:

  1. New Year's Day (January 1)
  2. Family Day (3rd Monday in February)
  3. Good Friday
  4. Victoria Day (Monday before May 25)
  5. Canada Day (July 1)
  6. Labour Day (1st Monday in September)
  7. Thanksgiving Day (2nd Monday in October)
  8. Christmas Day (December 25)
  9. Boxing Day (December 26)

These days entitle eligible employees, including part-time workers, to holiday pay.

Who Is Eligible for Holiday Pay?

An employee is eligible for holiday pay if they worked their last scheduled shift before the holiday and their first scheduled shift after (unless they have a valid excuse, such as illness).

How to Calculate Holiday Pay for a Part-Time Employee?

Holiday pay is calculated using the following formula:

📌 Holiday Pay = Total wages earned in the 4 weeks before the holiday ÷ Total days worked in those 4 weeks

Calculation Example:

Suppose a part-time employee:

  • Worked a total of 10 days in the 4 weeks before the holiday
  • Earned $1,200 during that period

📌 Holiday Pay = $1,200 ÷ 10 days = $120

The employee will receive $120 for the holiday, even if they do not work that day.

What Happens If the Employee Works on the Holiday?

If an eligible employee works on a public holiday, they are entitled to:

  • 1.5 times their regular hourly rate for the hours worked

OR

  • Their regular rate for the hours worked + a substitute paid day off

Example: If the employee earns $20/hour and works 8 hours on the holiday, they can receive $160 in regular pay + a paid day off, or $240 (8 hours x $30/hour).

Conclusion

Even for part-time employees, holiday pay is a legally protected right. By applying the correct formula, employers can ensure fair and compliant payroll practices.

To avoid errors, consider using Feuille de Temps, your time-tracking and payroll management tool, to simplify holiday pay calculations and meet legal requirements.

Feuille de Temps

We developed Feuille de Temps to help you avoid complex calculations and errors. Feuille de Temps automatically calculates payable hours for public holidays in Ontario and across Canada.