Canada Labour Code vacation pay: 8% and 4 weeks after 10 years with one employer
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 16 Oct 2026.The Canada Labour Code covers employees of federally regulated employers such as banks, airlines, interprovincial railways, shipping and radio broadcasting, wherever in Canada they work. It gives vacation pay of 4% of wages, 6% after five consecutive years and 8% after ten, with two, three and four weeks of vacation. This page opens at ten years: $60,000 of wages earns $4,800 of vacation pay.
2026 · Rates and rules read from the sources listed on this page (the earliest on 16 Oct 2026); they may have changed since.
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The Canada Labour Code sets vacation rules for federally regulated workplaces in every province and territory. Section 2 of the Code lists them: shipping, interprovincial railways, air transport, radio broadcasting, banks and other works within the authority of Parliament. This calculator follows Division IV of the Code on the Justice Laws Website, current to 21 September 2026.
Vacation time. Section 184 gives at least two weeks of vacation after one year of employment, three weeks after five consecutive years with the same employer and four weeks after ten.
Leaving the job. Section 188 requires the employer, within 30 days after employment ends, to pay any vacation pay still owed for completed years, plus the applicable percentage of the wages for the part of the current year on which no vacation pay has been paid. Type those wages to see the amount.
The rest of the article, and all 6 questions about Canada Federal Vacation Pay Calculator, are on the Canada Federal Vacation Pay Calculator page.
Under section 184.01 of the Canada Labour Code, vacation pay is 4% of the wages earned in the year of employment, 6% after five consecutive years with the same employer and 8% after ten. On $60,000 of wages that is $2,400, $3,600 or $4,800.
Section 184 gives at least two weeks of vacation after one completed year of employment, three weeks after five consecutive years with the same employer and four weeks after ten. Collective agreements and contracts can give more, but not less, than these minimums.
Federal vacation pay rises to 6% once an employee has completed at least five consecutive years of employment with the same employer, and to 8% after at least ten consecutive years. The higher rate applies to the wages of the year of employment in respect of which the vacation is earned.
Vacation time under the Canada Labour Code starts after one completed year, but vacation pay of 4% applies to the wages of every year of employment. An employee who leaves after eight months is still paid 4% of the wages earned in those months within 30 days.
Rates and rules change; check the source before you rely on a figure.
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Same job, other tools: Canada Labour Code Pay in Lieu of Notice Calculator – Federal pay in lieu of notice: 2 weeks after 3 months, rising to 8 weeks after 8 years · Calcul assurance-emploi 2026 (Canada) – Estimez vos prestations régulières d’assurance-emploi : 55 % du salaire, 729 $ au plus · Alberta Income Tax Calculator – Alberta take-home pay for 2026 with the 8% bracket and the $22,769 personal amount · BC Income Tax Calculator – British Columbia take-home pay for 2026 at the new 5.6% lowest rate, with CPP and EI.
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