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How is Holiday Pay Calculated?

Many employees and employers find holiday pay calculations confusing. While specific rules vary by province, the general formula is:

Holiday Pay = Total Wages Earned in the Past Four Weeks ÷ 20

For example, if an employee has earned $3,000 in the past four weeks:

$3,000 ÷ 20 = $150 in holiday pay.

Since specific rules can differ, employers are advised to consult local labor laws before making payments.