Stat Pay in Ontario
In Ontario, employees are entitled to paid time off for statutory (public) holidays. If an employee works on a statutory holiday or qualifies for holiday pay but doesn’t work on the holiday, they are entitled to holiday pay. Here’s how statutory holiday pay is calculated in Ontario:
Ontario's Statutory Holidays
There are 9 statutory holidays in Ontario:
New Year’s Day
Family Day
Good Friday
Victoria Day
Canada Day
Labour Day
Thanksgiving Day
Christmas Day
Boxing Day
Who Qualifies for Statutory Holiday Pay?
Most employees qualify for stat holiday pay if they meet the following conditions:
They work their regularly scheduled shift before and after the holiday (unless they have a valid reason, like an illness, for missing work).
How to Calculate Statutory Holiday Pay in Ontario
Statutory holiday pay is calculated based on the employee’s average daily wages.
Formula:
Statutory Holiday Pay=(Total Wages in Last 4 Work Weeks Before HolidayNumber of Days Worked in the 4-Week Period)\text{Statutory Holiday Pay} = \left( \frac{\text{Total Wages in Last 4 Work Weeks Before Holiday}}{\text{Number of Days Worked in the 4-Week Period}} \right)Statutory Holiday Pay=(Number of Days Worked in the 4-Week PeriodTotal Wages in Last 4 Work Weeks Before Holiday)
Step-by-Step Example:
Let’s assume an employee earned the following in the 4 weeks leading up to the holiday:
Week 1: $500 (5 days worked)
Week 2: $600 (5 days worked)
Week 3: $500 (5 days worked)
Week 4: $600 (5 days worked)
Step 1: Add up total wages in the last 4 weeks.
$500 + $600 + $500 + $600 = $2,200
Step 2: Count the number of days worked.
5 days per week for 4 weeks = 20 days worked
Step 3: Divide total wages by the number of days worked.
$2,200 ÷ 20 = $110
In this example, the employee's statutory holiday pay would be $110.
What If the Employee Works on the Statutory Holiday?
If the employee works on a stat holiday, they are entitled to:
Statutory Holiday Pay as calculated above plus
Premium Pay of 1.5 times their regular rate for the hours worked on the holiday.
Alternatively, the employee can agree to receive a substitute day off instead of premium pay.
Exclusions
Some employees are exempt from statutory holiday entitlements, including certain sectors like:
Employees in federally regulated industries (they follow federal holiday rules)
Construction workers (have separate holiday rules under collective agreements)
Part-time employees (in some circumstances)
Final Considerations
Statutory holiday pay rules can sometimes be complex, especially with different work arrangements like part-time or shift work. It’s always good to check the Employment Standards Act (ESA) or speak with an HR professional to ensure compliance with specific situations.
