In Canada, statutory holidays are mandated by employment standards legislation, providing employees with designated days off throughout the year.
Note: Employers are responsible for calculating statutory holiday pay according to their employees' provincial or territorial standards. This calculation typically includes the average earnings over a specified period leading up to the holiday, which can involve hours worked in the current pay cycle up to the holiday.
To ensure accuracy, employers must verify the calculation to include any changes in the current pay period, as these may not be reflected if the pay period is still open and data hasn't been updated in the payroll system. Failure to account for the most recent data can result in errors in the statutory holiday pay amount.
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Statutory Holiday Pay
Stat holidays are designated by the government as public holidays. These are days when most employees are entitled to a day off with pay. However, there are differences between working on a stat holiday and receiving stat holiday pay.
Stat holiday pay is compensation that eligible employees receive for a statutory holiday, even if they don't work on that day. It is intended to provide employees with income for the day off. The calculation for stat holiday pay depends on the province or territory in Canada and may vary.
- In most provinces and territories, stat holiday pay is typically calculated as a percentage of the employee's earnings in the 4 week period leading up to the holiday.
- Here's an example: Let's say an employee earns $3000 ($750/week) in the 4 weeks before the work week with a public holiday, and the province mandates a 1/20th (5%) formula for stat holiday pay.
- The employees pay would be calculated as such: $3000/20 = $150
- The employee would be entitled to a Public Holiday Pay of $150.
Stat Holiday Worked: When an employee is required to work on a statutory holiday, they are entitled to additional compensation on top of their regular wages. This is commonly referred to as "stat holiday pay" or "premium pay." The specific rate of premium pay can also vary depending on the province or territory and employment agreements.
- For example, some provinces may require employers to pay employees 1.5 times their regular wage for hours worked on a stat holiday. Others may require double-time pay.
- Let's say an employee works 8 hours on a statutory holiday and their regular hourly wage is $20. If the province mandates 1.5 times the regular wage for stat holiday work, the employee would receive $30 per hour for those 8 hours worked on the stat holiday.
It's important to note that the rules regarding statutory holidays and their compensation can vary from province to province in Canada. Employers and employees should refer to their province's specific employment standards legislation or consult with a labor lawyer or payroll specialist to ensure compliance with the applicable laws and regulations.