In Ontario, Canada, statutory holiday pay is calculated based on the employee's regular wages earned in the four work weeks (or 20 work days) before the holiday, divided by 20.
Here’s a step-by-step outline of how statutory holiday pay is typically calculated in Ontario:
Determine Eligibility:
Employees are generally eligible for statutory holiday pay if they have worked for the employer for at least 30 days in the preceding 12 months before the holiday.
Regular Wages Calculation:
Calculate the employee's regular wages earned in the four work weeks (or 20 work days) before the holiday. This includes wages earned for hours worked, as well as vacation pay and any other forms of earnings, but excludes overtime pay.
Calculate Daily Pay:
Divide the total regular wages earned in the four work weeks (or 20 work days) by 20. This gives you the average daily pay.
Statutory Holiday Pay Amount:
The amount of statutory holiday pay is then equal to the average daily pay calculated in step 3.
Example Calculation:
Suppose an employee earned $2,000 in regular wages (excluding overtime) over the four weeks before the holiday.
Average daily pay = $2,000 / 20 = $100.
Therefore, the statutory holiday pay for that employee would be $100.
It's important to note that this is a general guideline and actual calculations may vary based on specific employment situations or collective agreements.