SNiPS – Ontario Public Holiday Pay

In addition to the new minimum wage rate effective January 1,2018 the method of calculating public holiday pay has changed as well. Here is a clip on that:

On January 1, 2018, the section of Ontario’s Employment Standards Act, 2000 dealing with public holiday pay is revised. The new method for calculating public holiday pay comes into effect. Are you ready to calculate public holiday pay for the January 1, 2018, public holiday?

Calculation of public holiday pay (also known as statutory pay) will not be the same for entitlements for the New Year’s Day public holiday pay as it was for the calculation of 2017 Christmas Day and Boxing Day.

The amount an employee is entitled to be paid for the January 1, 2018, public holiday, is equal to:

Total amount of regular wages earned in the pay period immediately before Jan. 1, 2018 ÷ no. of days employee worked in that period

For example, if employee, John, earned $500 for the pay period December 24 to 30, 2017, and John worked 4 days during that period, he would be entitled to $125 in public holiday pay for January 1, 2018 ($500 ÷ 4 = $125).

OLD calculation: John would have had to work on the last scheduled work day before January 1, 2018, and the next scheduled work day after January 1, 2018, to be entitled to public holiday pay. So, if John did not show up for work on the day before or after the public holiday, without reasonable cause for missing the day, he would not be entitled to public holiday pay. Also the calculation was different. The public holiday was calculated on the amount of earnings for the four weeks prior to the public holiday divided by 20.

What if the employee did not work during pay period before January 1, 2018?

If the employee was on vacation or on a leave under section 50 of the Employment Standards Act, 2000, during the entire pay period immediately before the January 1, 2018, public holiday, then you calculate the public holiday pay on the pay period before the start of the leave or vacation.
Larry Smithers
Smithers Group/LGC Smithers Inc
89 King Street West
Dundas, Ontario
L9H 1v1


LGC Smithers and Associates are Accounting, Book Keeping, Payroll & Income Tax Specialists based in Dundas, Ontario.   We serve businesses in the greater Hamilton area and offer expert tax advice.  Contact us today to discuss how we can help with your financial needs at 905-627-2910.