Ontario Vacation Entitlement: 2 or 3 Weeks and 4% or 6% Vacation Pay (ESA)
Under Ontario's Employment Standards Act, employees get 2 weeks of vacation and at least 4% vacation pay, rising to 3 weeks and 6% after five years. Vacation pay can be paid on each cheque only with the employee's written or electronic agreement.
Under Ontario's Employment Standards Act, 2000 (ESA), employees get two weeks of vacation time per vacation entitlement year and vacation pay of at least 4% of gross wages. Once they reach five years with the employer, that rises to three weeks and at least 6%. Vacation pay can go out on each pay cheque only if the employee has agreed electronically or in writing.
These are the provincial minimums as of 2026. A contract or collective agreement can give more, but never less. The figures and rules below come from the Ontario government's Your guide to the Employment Standards Act: Vacation.
How much vacation do you get in Ontario?
The ESA treats vacation as two separate entitlements: vacation time and vacation pay.
| Length of employment | Vacation time per year | Minimum vacation pay |
|---|---|---|
| Less than 5 years | 2 weeks | 4% of gross wages |
| 5 years or more | 3 weeks | 6% of gross wages |
Vacation time is earned once the employee completes each vacation entitlement year. If someone leaves before finishing the year or stub period, they don't qualify for the vacation time under the ESA. Vacation pay is different: it builds up with every dollar of wages earned, so a departing employee is still owed it.
Some jobs are exempt from the ESA's vacation with pay rules, so check the exemptions for your industry.
When do you get 3 weeks of vacation after 5 years?
The ESA checks length of service at the end of each vacation entitlement year. If the employee has five or more years by then, they are entitled to three weeks of vacation time for that year.
The 6% rate works the same way. An employee who passes the five-year mark partway through a vacation entitlement year or stub period gets 6% of all the wages earned in that year or stub period, not just the wages earned after the anniversary.
Example: Priya was hired on 1 March 2021 and her employer uses the standard vacation year. She reaches five years on 1 March 2026. For the year that ends then, she has three weeks of vacation time, and her vacation pay for that year is 6% of all its wages.
What is the vacation entitlement year?
By default, it is a recurring 12-month period starting on the date of hire. Every employee's year then starts on a different date, which is awkward to track across a team.
So the ESA lets employers set an alternative vacation entitlement year, such as the calendar year, for everyone. The gap between an employee's hire date and the start of the first alternative year is called the stub period. For the stub period, the employer has to give a pro-rated amount of vacation.
If you are choosing a common leave year for your team, our guide on when your leave year should start covers the trade-offs.
Who schedules vacation, and how?
The employer has the right to schedule vacation, within these limits:
- Vacation earned for a year or stub period must be taken within 10 months after that year or stub period ends.
- Employees with under five years take it as one two-week block or two one-week blocks.
- Employees with five or more years take it as one three-week block, a two-week block plus a one-week block, or three one-week blocks.
- Shorter periods (single days, for example) are allowed only if the employee asks in writing and the employer agrees electronically or in writing.
The 10-month deadline is effectively Ontario's limit on carrying vacation over. To see how other places handle carry-over, read holiday carry-over and leave accrual explained.
How is 4% or 6% vacation pay calculated?
The percentage applies to gross wages earned in the vacation entitlement year, excluding vacation pay itself. The Ontario guide lists, among other items:
- regular earnings, including commissions
- overtime pay
- termination pay
Severance pay does not count: vacation pay is payable on termination pay but not on severance pay.
Example: An employee in their third year earns $52,000 in gross wages (no vacation pay included). At 4%, the minimum vacation pay is $2,080. With five years of service the minimum would be 6%, or $3,120.
Can my employer pay vacation pay on each cheque in Ontario?
Yes, but only with consent. By default, vacation pay must be paid as a lump sum before the employee takes the vacation. There are four exceptions:
- On each pay cheque. The employee has agreed electronically or in writing to receive vacation pay as it accrues. The amount must appear on the wage statement separately from other pay.
- Direct deposit. If wages go by direct deposit, vacation pay can be paid on or before the pay day for the period the vacation falls in.
- Vacation shorter than a week. The same "on or before that pay day" rule applies.
- Another agreed time. Vacation pay can be paid at any other time the employee agrees to electronically or in writing.
Getting vacation pay on each cheque does not cancel the vacation time. The ESA treats time and pay as separate parts. An employee can give up vacation time only if the employer agrees and the Director of Employment Standards approves. Even then, they cannot give up the vacation pay.
What happens to vacation pay when you leave or are let go?
When employment ends, the employee is entitled to all vacation pay earned and not yet paid. The employer must pay it within seven days of the end of employment or on what would have been the next pay day, whichever is later.
For how this compares in other countries, see are you paid for unused holiday when you leave a job?
Do other provinces have the same rules?
No. Each province and territory has its own employment standards, and federally regulated employers follow the Canada Labour Code instead. Under the Code, employees get 2 weeks (4%) after one year, 3 weeks (6%) after five consecutive years and 4 weeks (8%) after ten consecutive years with the same employer. Quebec has its own system too, covered in our French guide to vacances annuelles au Québec. For a wider view, see paid leave by country.
Tracking Ontario vacation without a spreadsheet
Two-week blocks, the 10-month deadline and staff moving to three weeks on different anniversaries are a lot to track in a spreadsheet. In Absenca, each office has its own leave year, leave types and public holidays, and employees can see their remaining balance when they book. The Free plan covers up to 10 people. Absenca tracks time off; it does not calculate pay.
FAQ
Is vacation pay 4% in Ontario?
Yes. The minimum is 4% of gross wages (excluding vacation pay) for employees with under five years of employment, and 6% from five years on. An employer can always pay more.
Do you get 3 weeks of vacation after 5 years in Ontario?
Yes. If you have five or more years of employment when a vacation entitlement year ends, you get three weeks of vacation time for that year, plus 6% vacation pay on all of that year's wages.
Can my employer pay vacation pay on each cheque in Ontario?
Only if you have agreed electronically or in writing. The amount must also be shown separately on your wage statement. You still have your vacation time.
When must vacation be taken in Ontario?
Within 10 months after the end of the vacation entitlement year or stub period in which it was earned. The employer decides the timing.
Is vacation pay paid out when you quit in Ontario?
Yes. All earned and unpaid vacation pay is due within seven days of the job ending or on the next regular pay day, whichever is later.
Employment standards can change and some jobs have exemptions. Check the official Ontario ESA vacation guide for your situation.