In Prince Edward Island, the rules for calculating overtime changed on June 30, 2026: a new Employment Standards Act replaced the former one, and the threshold dropped from 48 to 44 hours per week. The Act sets a minimum: your policy or collective agreement can offer more, never less.
Updated October 9, 2026, based on the Employment Standards Act (Stats. P.E.I. 2024, c. 66), as consolidated to June 30, 2026, in force since June 30, 2026 (EC2026-648), and its Employment Standards Regulations (EC2026-653).
When does an hour become overtime?​
The standard work week is 44 hours (section 15). Each hour worked beyond it in the work week is an overtime hour, paid at one and a half times the employee's regular wage rate (section 24(1)). The work week runs from Sunday to Saturday, unless the employer picks another starting day (section 1).
Example: a coordinator paid $24 an hour works 47 hours in a week. The first 44 hours are paid at $24 and the next 3 at $36, for $1,056 + $108 = $1,164.
The threshold is weekly. A 10-hour day does not create overtime if the week stays under 44 hours.
Can hours be averaged over several weeks?​
Yes, through a written averaging agreement covering two to four weeks (section 25). The agreement states the number of weeks, its start and expiry dates, the schedule for each day and how many times it can be renewed. Both parties sign it, and the employee receives a copy before the start date. While it applies:
- the schedule does not exceed an average of 44 hours per week;
- each hour above that average is paid at one and a half times the regular rate;
- the employee gets 36 consecutive hours of rest for each week covered, or is paid time and a half for the hours worked instead.
The employer keeps the agreement for at least four years after it expires.
Give each employee a written schedule at least one week in advance, with planned overtime hours where practicable (section 16).
See it with your own rules
Feuille de temps calculates overtime on every timesheet, beyond the weekly threshold set for your organization.
Who is subject to different rules?​
The Employment Standards Board can set a standard work week longer than 44 hours for specified employers or sectors, by an order published in the Royal Gazette (section 15(2)). An order made under the former Act that is still in force continues to apply and can be reviewed (sections 15(5) and 101(1)).
The regulations also set aside the 44-hour standard week and the minimum wage (sections 15, 20 and 21 of the Act) for employees of a non-profit organization who are required to live in a facility it operates, and for employees solely employed to care for a child, a person with a disability or an older person in a private home (EC2026-653, section 8(2)). If in doubt, check your situation with the Employment Standards Branch.
Can overtime be taken as time off?​
Yes. An employee who wants paid time off in place of overtime pay gives the employer written notice (section 24(2)). The employer then grants 1.5 hours of paid time off for each overtime hour (section 24(3)): 4 hours of overtime give 6 hours off.
The time off must be taken within three months of the end of the week in which the overtime was worked. If employment ends first, the hours are paid at time and a half (section 24(4)).
Payroll records must show the number of overtime hours each employee has accumulated and used (section 39(1)(m)).
Keep each employee's written notice choosing time off, and track the week each hour went into the bank: that week starts the three-month clock.
How many sick days are employees entitled to?​
After 30 days of continuous employment, an employee is entitled to four days of unpaid sick leave per year (section 43(1)). From one year of continuous employment, the Act also provides paid days at the regular wage rate (sections 43(2) and 43(3)):
| Year of employment | Paid sick days |
|---|---|
| First | 0 |
| Second | 1 |
| Third | 2 |
| Fourth and after | 3 |
Unused days do not carry over to the next year (section 43(4)). The employee can take paid days before unpaid ones (section 43(5)). For an absence of five or more consecutive days, the employer can ask for written confirmation from a qualified practitioner (section 43(6)).
How many weeks of vacation do employees get?​
After each year of continuous employment, the employer grants vacation within the following four months (section 30):
| Continuous employment | Vacation | Vacation pay |
|---|---|---|
| Less than 5 years | 2 uninterrupted weeks | 4% of wages |
| 5 years or more | 3 uninterrupted weeks | 6% of wages |
Vacation pay accrues every pay period (section 29). A paid holiday during the vacation extends it by one work day (section 30(4)), and paid sick leave does not count as vacation (section 30(5)).
Pay for a paid holiday is 5% of the wages earned in the four weeks before it, overtime pay excluded (section 28). Our article on public holidays in Canada lists this year's dates.
Each year, flag the employees who reach 5 years of continuous employment: their vacation pay moves from 4% to 6%.
Sources​
- Employment Standards Act, office consolidation current to June 30, 2026, Government of Prince Edward Island
- Employment Standards Regulations (EC2026-653), Executive Council, June 9, 2026
Feuille de temps​
Feuille de temps is timesheet software built for non-profits. Once we have set up your rules with you, it calculates daily and weekly overtime, the overtime bank, vacation and sick banks, and percentage-based vacation. To set the threshold, see [overtime premiums](/docs/tutorial-admin/heures-supplementaires-majorees).Frequently Asked Questions
When does overtime start in Prince Edward Island?
After 44 hours in the work week, since June 30, 2026. The former Act set the threshold at 48 hours.
What is the overtime rate in Prince Edward Island?
One and a half times the employee's regular wage rate, for each hour beyond the standard work week.
Can overtime be taken as time off in Prince Edward Island?
Yes, if the employee gives the employer written notice. Each overtime hour earns 1.5 hours of paid time off, to be taken within three months of the end of the week in which it was worked.
Can overtime be calculated over several weeks?
Yes, through a written averaging agreement covering two to four weeks, signed before the period starts. Hours above an average of 44 per week are paid at time and a half.
How many paid sick days are there in Prince Edward Island?
One day in the second year of employment, two in the third, then three per year from the fourth. The Act also provides four unpaid days after 30 days of employment.