Governments designate public holidays—also called statutory or “stat” holidays—to honor cultural and national occasions. In Ontario, these days are provincially recognized and come with specific pay entitlements for employees. Employers must follow the Employment Standards Act (ESA) to determine eligibility and provide proper compensation.
In this article, you’ll learn which public holidays Ontario recognizes and how employers can stay compliant with ESA requirements.
An overview of paid holidays in Ontario
In Ontario, the ESA mandates that employers recognize certain public holidays and treat them as paid days off. Because holidays vary by province, ESA rules ensure all Ontario workers receive proper compensation. However, some sectors, including health care, hospitality, and transportation, must continue operating as usual.
In these cases, the ESA requires employers to compensate employees for hours worked, usually at time-and-a-half on top of their regular holiday pay. This guarantees that statutory holidays carry extra value, even when businesses remain open.
Eligibility criteria for holiday pay in Ontario
Most full-time, temporary, and part-time employees are entitled to paid days off on statutory holidays. To qualify, employees must follow the “first and last rule,” meaning they must work their last shift before the holiday and their first shift after. Missing either shift without a valid reason, such as an illness or a family emergency, may make them ineligible.
Some employees who are not eligible for paid holidays include:
- Independent contractors
- Farm workers
- Firefighters
- Doctors
- Engineers
- Certain managers
- Employees in federally regulated sectors like banking, which follow the Canada Labour Code instead
Ontario's public holidays
Holidays in Ontario, Canada, are spread throughout the year, giving employees breaks at different times and supporting work-life balance. Here are the nine that are recognized:
- New Year’s Day
- Family Day
- Good Friday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Christmas Day
- Boxing Day
Some days, like Easter Monday, the first Monday in August (often called Civic Holiday or Simcoe Day), and Remembrance Day, are not considered ESA stat holidays in Ontario. But some employers choose to recognize them as additional paid days anyway.
How to calculate holiday pay in Ontario: 3 steps
Accurately determining holiday pay ensures employees receive fair compensation for their time off. Follow these three steps to calculate it correctly.
1. Gather employee wage data
Pull the four most recent pay stubs before the holiday falls. Total the employee's regular wages and any vacation pay earned for that period. Be sure to only include these amounts so the average reflects typical earnings during the ESA-defined workweek window.
Regular wages don’t include:
- Overtime pay
- Premium pay for working a public holiday
- Vacation pay already received
- Termination or severance pay
- Tips and gratuities
2. Apply the ESA formula
Add the four-week totals together, then divide by 20. The result is the employee’s public holiday pay for the day.
3. Review for accuracy and compliance
Double-check the dates, confirm they cover the four weeks immediately before the holiday week, and include vacation pay earned during that period.
Example: Say your employee earned the following in the four weeks before Canada Day.
- Week 1: $700 regular wages + $28 vacation pay
- Week 2: $720 regular wages + $29 vacation pay
- Week 3: $680 regular wages + $27 vacation pay
- Week 4: $700 regular wages + $28 vacation pay
Total wages + vacation pay over four weeks = $2,912
Holiday pay calculation = $2,912 / 20 = $145.60 in public holiday pay
How to calculate statutory pay
When employees in Ontario work on a statutory holiday, the ESA gives employers two options for providing additional compensation beyond standard public holiday pay:
- Public holiday plus premium: Employees receive 1.5 times their regular rate for all hours worked during the holiday.
- Substitute day off: Staff earn their standard rate for hours worked on the holiday and take an alternate day off.
The employer decides which pay option applies unless a collective agreement specifies otherwise. Both approaches ensure that working on a statutory holiday has added value and keeps the workplace in line with provincial standards.
Public holiday pay vs. vacation pay
Public holiday pay applies to specific dates recognized provincially, like Good Friday and Canada Day. Employees with fixed schedules receive holiday pay based on eight hours at their regular rate. Those with flexible hours earn compensation equal to five percent of their gross wages, excluding overtime, from the four weeks leading up to the holiday.
Vacation pay works differently. It accrues over time based on an employee’s years of service rather than applying to a specific date. People can take a vacation as paid time off or receive a lump sum during their entitlement period.
Some employers think employees can use vacation days to “replace” a statutory holiday, but the ESA doesn’t allow that. Public holiday pay is a separate legal entitlement, and employers must provide both public holiday and vacation pay independently to stay compliant.
Give employees the holiday pay they deserve with Oyster
Managing holiday pay in Ontario is one thing—managing payroll across borders is another. With Oyster’s Global Payroll, you can process compensation for your team in 30+ countries from a single platform, stay compliant with local laws, and reduce the risk of errors.
Oyster accounts for public holidays, simplifies calculations, and integrates with your HR tools. Teams gain confidence knowing every paycheck is accurate and compliant, whether employees are in Canada or abroad.
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FAQs
Can independent contractors receive holiday pay in Ontario?
No. The ESA doesn’t cover independent contractors, so they’re not entitled to public holiday pay. Employers must specify any holiday compensation in the contract if they want to provide it.
What is substitute holiday pay?
When an employee works on a public holiday, the ESA allows the employer to give them a different paid day off instead. On the holiday worked, the employee earns their regular wages, and later they take the substitute day with public holiday pay.
What is premium pay, and how is it calculated?
Premium pay is extra compensation for working on a public holiday. In Ontario, it equals 1.5 times the employee’s regular hourly rate for every hour worked on that holiday.
About Oyster
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