How does the 'lesser of' rule work in New Brunswick?

Vacation time is the LESSER of: 1 day per month worked (or 1.25 days for 8+ years), OR 2 weeks per year (or 3 weeks for 8+ years). Part-year workers get prorated vacation.

When must vacation pay be paid in New Brunswick?

Vacation pay must be paid at least 1 day before vacation begins. On termination, outstanding vacation pay must be paid on the final pay cheque.

🇨🇦 New Brunswick Vacation Pay Calculator 2025

Calculate your vacation pay and vacation time under the New Brunswick Employment Standards Act.

NB ESA 4% or 6% 2 or 3 Weeks

Key Rules: Vacation pay is 4% (2 weeks) for less than 8 years, and 6% (3 weeks) after 8 years. New Brunswick uses a unique "lesser of" rule — vacation time is the lesser of 1 day/month worked OR 2 weeks/year (1.25 days/month OR 3 weeks/year for 8+ years).

💡 Quick Examples — From the NB ESA Guide▶

Less than 8 years:
Gross wages = $30,000
Vacation pay = $30,000 × 4% = $1,200.00
Vacation time = 2 weeks (10 days)

8+ years:
Gross wages = $30,000
Vacation pay = $30,000 × 6% = $1,800.00
Vacation time = 3 weeks (15 days)

Part-year (6 months worked, less than 8 years):
Accrual method: 6 days (1 day × 6 months)
Weekly method: 10 days (2 weeks)
→ Lesser: 6 days

Part-year (6 months worked, 8+ years):
Accrual method: 7.5 days (1.25 × 6 months)
Weekly method: 15 days (3 weeks)
→ Lesser: 7.5 days

💼 Employment Information

Date of Hire

Calculation Date

📋 Employment Status

Currently EmployedCalculate ongoing vacation pay Terminated / QuitPayout on final pay cheque

💰 Wages Earned

Gross Wages Earned ($)

Total gross wages earned during the vacation year.

Months Worked in the Vacation Year

📊 Optional Breakdown

Leave blank if you already entered Gross Wages above. Filling these in will auto-sum into the total.

Regular Wages / Salary

Commissions

Bonuses

Other Compensation

⚙️ Options

I have a written agreement for a higher rate

Custom Vacation Pay Percentage (%)

The NB ESA allows employers to provide MORE than the minimum — those agreements are enforceable.

Vacation Pay Already Paid ($)

VACATION PAY CALCULATED

$0.00

vacation pay owing

🏖️ 2 weeks (10 days)

Years of Employment 0.0 years

Vacation Pay Rate 4%

Months Worked 12 months

Vacation Time (Lesser of Rule) 10 days (2 weeks)

Gross Wages $0.00

Vacation Pay Earned $0.00

Less: Vacation Pay Already Paid −$0.00

      Vacation Pay Owing
      $0.00
    

📋 "Lesser of" Rule Applied:

Accrual method: —
Weekly method: —
Lesser: —

💵 Termination Payout: You are entitled to $0.00 in outstanding vacation pay. This must be paid on your final pay cheque.

🏖️ Vacation Time: You are entitled to 2 weeks of vacation time. Your employer must give you your vacation no later than 4 months after you earned it.

📅 Payment Timing: Vacation pay must be paid at least 1 day before vacation begins.

📋 Timing Disputes: If you and your employer cannot agree on timing, your employer can decide with at least 1 week's notice.

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

🧮 Calculation Walkthrough — See your numbers plugged in▶

Step 1 — Years of Employment:

—

Step 2 — Vacation Pay Rate:

—

Step 3 — Vacation Time (Lesser of Rule):

—

Step 4 — Vacation Pay Earned:

—

Step 5 — Vacation Pay Owing:

—

📖 What Counts as Gross Wages for Vacation Pay▶

✅ Included in gross wages:

Regular wages (hourly, salary)
Commissions
Bonuses
All other wages paid for work

Note: Gross wages are calculated before deductions (taxes, CPP, EI, etc.).

📖 NB Vacation Time Rules — The "Lesser of" Rule▶

New Brunswick's "Lesser of" Rule:

Vacation time is the LESSER of two methods:

Less than 8 years of service:

Accrual: 1 day per month worked, OR
Weekly: 2 weeks (10 days) per vacation year

8+ years of service:

Accrual: 1.25 days per month worked, OR
Weekly: 3 weeks (15 days) per vacation year

Why it matters: A part-year worker gets a prorated vacation based on the accrual method. For example, someone who worked only 6 months with less than 8 years of service gets 6 days (not 10 days).

Timing Rules:

Employee is entitled to vacation after 1 year of service
Employer must give vacation no later than 4 months after earning
If no agreement on timing: employer gives 1 week's notice
Vacation pay must be paid at least 1 day before vacation begins

📊 NB Vacation Entitlement Table

Period of Employment	Vacation Time (Lesser of)	Vacation Pay
Less than 8 years	1 day/month OR 2 weeks/year	4% of gross wages
8 years or more	1.25 days/month OR 3 weeks/year	6% of gross wages

⚠️ Disclaimer: This calculator provides an estimate for informational purposes only. Actual entitlements are governed by the New Brunswick Employment Standards Act and any applicable employment contract (which may provide greater benefits). For disputes, contact the NB Employment Standards Branch at 1-888-452-2687.

❓ Frequently Asked Questions

How is vacation pay calculated in New Brunswick?

Vacation pay is 4% of gross wages for less than 8 years of employment, and 6% for 8 or more years. It's calculated on gross wages before deductions.

What is the 8-year threshold?

New Brunswick uses 8 years of service as the threshold for the 6% vacation pay rate and 3 weeks of vacation. This is unique — most other provinces use 5 years.

How does the "lesser of" rule work?

Vacation time is the LESSER of two methods: (1) Accrual: 1 day/month worked (or 1.25 days/month for 8+ years), OR (2) Weekly: 2 weeks/year (or 3 weeks/year for 8+ years). Part-year workers get prorated vacation based on the accrual method.

When must vacation pay be paid?

Vacation pay must be paid at least 1 day before vacation begins. On termination, all outstanding vacation pay must be paid on the employee's final pay cheque.

What happens on termination?

On termination, all outstanding vacation pay must be paid when the employee receives their final pay cheque. There is no separate deadline (unlike some other provinces).

When can I take my vacation?

An employee is entitled to take vacation after completing 1 year of service. The employer must give them their vacation no later than 4 months after earning it.

What if I don't agree with my employer on timing?

If an agreement cannot be reached, the employer can decide when the vacation will begin, as long as they provide at least 1 week's notice before the start date.

Can my employer give more?

Yes. The NB ESA allows employers to provide MORE than the statutory minimum (e.g., 8% vacation pay, additional weeks). Such agreements are enforceable and this calculator supports custom rates.

What about public holidays?

This calculator is for vacation pay only. Public holidays are covered separately under the NB ESA. If the holiday falls on a non-working day or during vacation, the qualifying employee receives another day off with pay in lieu, or a regular day's pay if they agree.

Official New Brunswick resources: NB Employment Standards · Contact Employment Standards Branch

⚠️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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