Navigating Statutory Holidays in Canada

Statutory holidays—often called “stat holidays”—are paid days off mandated by federal and provincial employment standards. They reflect Canada’s cultural diversity and commitment to worker rights, but managing them can be complex for businesses operating across multiple provinces and employing a mix of salaried, hourly, full-time, part-time, and casual workers. 

Errors in statutory holiday pay can trigger compliance issues. Manual calculations across multiple provinces are complex and prone to mistakes—and employees notice discrepancies quickly. Getting payroll right the first time is critical for accuracy and trust. 

Nationwide statutory holidays in Canada

Across Canada, five holidays are observed across all provinces:

• New Year’s Day (Jan. 1)

• Good Friday (Friday before Easter)

• Canada Day (July 1)

• Labour Day (Sept. 1)

• Christmas Day (Dec. 25)

Provincial breakdown

For provincially regulated businesses, each province adds its own holidays. These holidays are also required to be paid. Below is the full list of statutory holidays recognized by each Canadian province and territory:

*This holiday has different names in each province.
**In Quebec, employees can take off Good Friday or Easter Monday.

Eligibility and calculations

Stat holiday eligibility varies by province, but most follow similar rules such as minimum work days, recent wages earned, or scheduled-shift requirements.

Specifically, employees generally qualify if they meet provincial requirements, such as: 

• Working a minimum period before the holiday

• Earning wages on a set number of prior days

• In Ontario, working the last and first scheduled shifts around the holiday (unless excused)

Hourly employees

Employees who qualify receive an average day’s pay, calculated from wages earned in the previous four weeks (excluding overtime). (Note: This is a general guideline, but the specific calculation for each province may vary.)

Salaried employees

Statutory holiday pay is typically included in their regular salary, so they continue to receive their normal pay without any additional calculation. 

But what if my employee works on the statutory holiday too? 

Because rates and entitlements differ by province, many employers search for guidance on how to pay employees who work on a statutory holiday.

While most businesses are required to be closed during statutory holidays, some businesses remain open, including retail, tourist areas, hospitality, healthcare, and transportation. For employees who are required to work on statutory holidays, there are additional considerations to navigate. 

For hourly employees who work on a statutory holiday, employees not only receive statutory holiday pay, but they also receive overtime for all hours worked on the statutory holiday. This means their actual rate of pay for this day is often 2.5 times higher their regular hourly rate. 

Salaried employees who work on a statutory holiday typically receive a paid day in lieu. In addition, if the holiday falls outside the regular working day, then the employee also receives a day in lieu. For example, if Christmas Day falls on Saturday, Dec. 25, then a salaried employee would receive the Monday off work.  

How AllWork makes it seamless

AllWork’s platform and payroll processes automates: 

• Individual holiday pay calculations: Based on provincial rules and individual employee eligibility. This ensures employees are paid fairly and that companies are not over-paying based on eligibility.

• Billing simplification: Incorporates holiday pay without impacting monthly budgets.

• Overtime tracking: Applies correct premium rates for employee who work on a holiday.

• Compliance navigation: Handles province-specific regulations seamlessly.

• Pay date changes: With banking closures on statutory holidays, AllWork will adjust pay dates as needed to ensure employees are paid on time, even during holiday weeks.

 

Frequently asked questions

Q: Do part-time employees get statutory holiday pay in Canada? 

A: Yes, part-time workers may qualify depending on provincial rules about recent hours worked or scheduled shifts. 

Q: What happens if a statutory holiday falls on a weekend? 

A: Most provinces designate the next business day as the observed holiday, but rules vary. 

Q: Which statutory holidays are national in Canada? 

A: New Year’s Day, Good Friday, Canada Day, Labour Day, and Christmas Day are recognized across all provinces. 

With AllWork, you can onboard, manage, and pay your workforce without worrying about provincial variations—saving time and reducing compliance risk. Learn more about how AllWork supports Canadian workforce management.