What wages count toward vacation pay in Alberta?

Regular wages, commissions, incentive pay, and previously paid vacation pay count. Overtime, general holiday pay, termination pay, unearned bonus, tips, expenses, and allowances are excluded.

What happens to vacation pay when employment ends in Alberta?

Before 12 months of employment: 4% of all wages earned. After 12 months: unpaid vacation entitlements for the previous year plus 4% or 6% of wages since the last vacation. Must be paid within 10 consecutive days after the pay period or 31 consecutive days after termination.

🇨🇦 Alberta Vacation Pay Calculator 2025

Calculate your vacation pay and vacation time under the Alberta Employment Standards Code.

Alberta ESC 4% or 6% 2 or 3 Weeks

Important: Employees must work 1 year before they are entitled to vacation TIME under the Alberta ESC. Vacation pay is 4% of wages for less than 5 years, and 6% for 5+ years. For monthly-salaried employees, each week of vacation pay = monthly wage ÷ 4.3333.

💡 Quick Examples — From the Alberta ESC Guide▶

Hourly Employee (less than 5 years):
$25/hr × 2,000 hrs = $50,000 in wages
Vacation pay = $50,000 × 4% = $2,000

Monthly Salaried Employee (less than 5 years):
Monthly salary = $4,333.33
Weekly vacation pay = $4,333.33 ÷ 4.3333 = $1,000
2 weeks of vacation pay = 2 × $1,000 = $2,000

5+ Years of Employment:
$50,000 in wages
Vacation pay = $50,000 × 6% = $3,000 (plus 3 weeks vacation time)

Terminated before 12 months:
Wages earned during employment = $20,000
Termination payout = $20,000 × 4% = $800

💰 How are you paid?

HourlyPaid per hour Weekly WageFixed weekly wage Monthly SalaryRegular monthly salary Commission / IncentivePaid by commission or incentive

💼 Employment Information

Date of Hire

Calculation Date

📋 Employment Status

Currently EmployedCalculate ongoing vacation pay Terminated / QuitCalculate termination payout

💰 Wages Earned

Hourly Rate ($)

Hours Worked During Entitlement Period

⚙️ Optional Adjustments

Previously Paid Vacation Pay ($)

Vacation Pay Already Paid ($)

I have a written agreement for a higher rate (e.g., 8%)

Custom Vacation Pay Rate (%)

Alberta ESC allows employers to provide MORE than the minimum — those agreements are enforceable.

I work in an exempt industry (real estate, insurance, film extras, teachers, etc.)

⚠️ Exempt Industry: Certain industries are not covered by Alberta's vacation pay rules: licensed or registered salespersons of real estate and securities, commission salespersons soliciting outside the employer's place of business, extras in film/video productions, licensed insurance salespersons paid entirely by commission, and teachers. Contact Alberta Employment Standards for details.

VACATION PAY CALCULATED

$0.00

vacation pay owing

2 weeks of vacation time

Years of Employment 0.0 years

Vacation Pay Rate 4%

Vacation Time Entitlement 2 weeks

Total Wages $0.00

Vacation Pay Earned $0.00

Less: Vacation Pay Already Paid −$0.00

      Vacation Pay Owing
      $0.00
    

⚠️ Under 1 Year — No Vacation Time Yet: You must work for 1 year before you are entitled to vacation time under the Alberta ESC. However, if your employment ends before 1 year, you are still entitled to 4% of wages earned during employment as vacation pay.

💵 Termination Payout: You are entitled to $0.00 in vacation pay. This must be paid within 10 consecutive days after the end of the pay period in which termination occurred, OR within 31 consecutive days after your last day of employment (employer's choice).

🏖️ Vacation Time: You are entitled to 2 weeks of vacation time. Your vacation must be taken within 12 months of being earned. You cannot skip the time and just receive the pay.

📋 Custom Rate Applied: You have a written agreement for a higher vacation pay rate than the ESC minimum. Your entitlement is calculated using your agreed rate.

📋 Payment Timing: Vacation pay must be paid at least once a month, on each pay period, or at least one day before vacation begins (if requested). A statement of earnings including vacation pay must be provided at the end of each pay period.

🧮 Calculation Walkthrough — See your numbers plugged in▶

Step 1 — Length of Employment:

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Step 2 — Vacation Pay Rate:

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Step 3 — Total Wages:

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Step 4 — Vacation Pay Earned:

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Step 5 — Vacation Pay Owing:

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📖 What Counts as Wages for Vacation Pay▶

✅ Included in total wages (per Alberta ESC s. 36):

Regular wages and salary
Commissions
Incentive pay
Previously paid vacation pay (unless paid frequently — per pay period or quarterly)

❌ Excluded from total wages:

Overtime pay
General holiday pay
Termination pay
Unearned bonus
Tips and gratuities
Expenses and allowances

🚫 Exempt Industries (per Alberta ESC)▶

The following employees are NOT eligible for vacation pay under the Alberta Employment Standards Code:

Licensed or registered salespersons of real estate and securities
Commission salespersons who solicit orders principally outside the employer's place of business (route salespersons are NOT exempt)
Extras in a film or video production
Licensed insurance salespersons who are paid entirely by commission income
Teachers

If you work in one of these industries, contact Alberta Employment Standards for details on your entitlement.

⚠️ Disclaimer: This calculator provides an estimate for informational purposes only. Actual entitlements are governed by the Alberta Employment Standards Code and any applicable employment contract or collective agreement (which may provide greater benefits). In the event of a discrepancy, the legislation is considered correct. For disputes, contact Alberta Employment Standards.

❓ Frequently Asked Questions

How is vacation pay calculated in Alberta?

Vacation pay is at least 4% of wages for employees with less than 5 years of employment, and at least 6% for employees with 5 or more consecutive years. Multiply the total wages earned during the entitlement period by the applicable percentage.

What is the vacation pay rate?

4% for less than 5 years, 6% for 5+ consecutive years. Employers can provide MORE via a written agreement, and those agreements are enforceable.

What wages count toward vacation pay?

Regular wages, salary, commissions, incentive pay, and previously paid vacation pay (unless paid frequently) all count toward vacation pay.

What wages do NOT count?

Overtime pay, general holiday pay, termination pay, unearned bonus, tips and gratuities, expenses, and allowances are excluded from total wages for vacation pay purposes.

How does the monthly salary rule work?

For monthly-salaried employees, each week of vacation pay equals the monthly wage divided by 4.3333 (the average number of weeks in a month). For example, a $4,333.33 monthly salary gives $1,000 per week of vacation pay.

What happens when employment ends?

Before 12 months: You are entitled to 4% of all wages earned during employment. After 12 months: You are entitled to unpaid vacation entitlements for the previous year, plus 4% (or 6% if 5+ years) of wages from your last vacation anniversary to termination.

Can I skip vacation and just take the pay?

No. Under the Alberta ESC, employers must give vacation time and employees must take the vacation to which they're entitled. You cannot skip the time and just receive the pay.

What if I have an agreement for more?

Any agreement providing MORE than the ESC minimum (e.g., 8% vacation pay or 4 weeks of vacation time) is enforceable. Employers must uphold agreements that exceed the minimum requirements.

What industries are exempt?

Licensed or registered salespersons of real estate and securities, commission salespersons who solicit orders principally outside the employer's place of business (route salespersons are NOT exempt), extras in film/video productions, licensed insurance salespersons paid entirely by commission, and teachers.

What happens if the business is sold?

A sale of business does not break the employee's vacation entitlement. The previous owner must pay all accumulated vacation pay, and the new owner must grant any accumulated vacation time.

When must vacation pay be paid?

Vacation pay must be paid at least once a month, on each pay period, or at least one day before vacation begins (if requested). The employer must also provide a statement of earnings including vacation pay at the end of each pay period.

What if I worked less than 1 year?

You are not entitled to vacation time until you complete 1 year. However, if your employment ends before 1 year, you are still entitled to 4% of wages earned during employment as vacation pay.

Official Alberta resources: Alberta Employment Standards — Vacations and Vacation Pay · Contact Employment Standards

⚠️This tool is for information purpose only. We do not guarantee any claim.
It is made based on data publicaly available on official website of concerned department.

Last Updated: March 2026 | Official Determination Required

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