Vacation pay in British Columbia is at least 4% of your total wages, increasing to 6% after five consecutive years of employment. Most employees become entitled to vacation pay after just five calendar days with an employer.
Vacation pay is separate from vacation time. It’s the money you’re owed for your annual vacation, whether you’re paid hourly, by salary or through commissions.
💡 BC Vacation Pay: At least 4% of total wages before completing five years of employment and 6% after five years. Vacation pay must normally be paid at least seven days before your vacation begins.
On This Page
- Vacation Pay Rates
- The Five-Year Rule
- How to Calculate Vacation Pay
- Which Earnings Count?
- Salary, Part-Time & Commission
- When Must It Be Paid?
- Vacation Pay When You Leave
- Frequently Asked Questions
How Much Vacation Pay Do You Get in BC?
Under the BC Employment Standards Act, minimum vacation pay depends on how long you’ve worked for your employer.
| Length of Employment | Minimum Vacation Pay |
|---|---|
| After 5 calendar days, before completing 5 years | 4% of total wages |
| After 5 consecutive years | 6% of total wages |
These are minimum rates. Your employment contract or workplace policy can provide more.
Vacation pay doesn’t replace your right to take annual vacation. See our Vacation Time BC guide for the rules on vacation days and scheduling.
When Does Vacation Pay Increase to 6% in BC?
Your vacation pay increases to 6% when you complete five consecutive years with the same employer.
Importantly, the 6% entitlement applies to wages earned during your fifth year of employment.
If you’ve been receiving 4% vacation pay on every paycheque, your employer must make up the additional 2% owed on your fifth-year earnings when you reach your fifth anniversary.
Example: The Five-Year Adjustment
You earned $60,000 during your fifth year and already received 4% vacation pay.
- Vacation pay already received: $2,400
- Vacation pay required at 6%: $3,600
- Additional vacation pay owed: $1,200
If you’re approaching five years of employment, check that your employer makes this adjustment.
How Do You Calculate Vacation Pay in BC?
Multiply your total eligible wages by your vacation pay percentage.
Vacation Pay = Total Eligible Wages × 4% or 6%
Example: 4% Vacation Pay
You earned $50,000 in eligible wages and haven’t completed five years of employment.
$50,000 × 4% = $2,000 in vacation pay.
Example: 6% Vacation Pay
You’ve completed five years of employment and earned $50,000 in eligible wages.
$50,000 × 6% = $3,000 in vacation pay.
These examples assume $50,000 represents all earnings included in the calculation. Your vacation pay can be higher if you also receive overtime, commissions or other qualifying wages.
What Earnings Are Included in Vacation Pay?
Vacation pay is calculated on total wages, not just your base salary.
Eligible earnings include:
- Regular wages and salary
- Overtime pay
- Commissions
- BC Statutory holiday pay
- Paid sick leave required by BC law
- Bonuses that qualify as wages
- Vacation pay already paid
- Certain termination payments
Not every bonus or benefit counts as wages. What matters is the nature of the payment.
Don’t calculate vacation pay using only your base salary if you earn commissions, overtime or bonuses. You could be owed more.
Vacation Pay for Salaried, Part-Time and Commission Employees
Salaried Employees
Salaried employees are entitled to minimum vacation pay. If your employer continues paying your salary while you’re on vacation, those payments can count toward your vacation pay entitlement.
However, your total vacation pay must still meet the required 4% or 6% minimum.
Part-Time and Casual Employees
Part-time and casual employees also qualify for vacation pay. The same percentage applies to their eligible wages, regardless of how many hours they work each week.
Commission Employees
Commissions that count as wages must be included when calculating vacation pay. This applies whether you’re paid entirely by commission or receive a salary plus commission.
For related wage rules, see our guides to overtime pay in BC and unpaid wages in BC.
When Must Vacation Pay Be Paid in BC?
Vacation pay must normally be paid at least seven days before your annual vacation begins.
However, you and your employer can agree in writing to receive vacation pay on your regular paycheques instead.
Receiving vacation pay on every paycheque doesn’t eliminate your entitlement to vacation time.
If you want to receive vacation money instead of taking time off, read our Cash Out Vacation Pay BC guide.
What Happens to Vacation Pay When You Quit or Are Fired?
Your employer must pay all outstanding vacation pay when your employment ends. Being fired, laid off or resigning doesn’t erase vacation pay you’ve earned.
BC has two final-pay deadlines:
- If your employer ends your employment: Within 48 hours
- If you resign: Within 6 days
Vacation pay is also owed on statutory compensation for length of service and group termination pay.
If you’ve been fired or laid off, outstanding vacation pay is separate from any severance pay in BC you’re owed (which can be as much as 24 months’ pay).
Vacation Pay BC: Frequently Asked Questions
Is Vacation Pay Mandatory in BC?
Yes. Most employees covered by the BC Employment Standards Act become entitled to vacation pay after five calendar days of employment.
Is Vacation Pay 4% or 6% in BC?
The minimum is 4% before completing five years of employment and 6% after five consecutive years.
How Much Vacation Pay Do You Get After 10 Years in BC?
The statutory minimum remains 6%. BC law doesn’t require another increase after 10 years, although your employment agreement can provide more.
Is Vacation Pay Calculated on Overtime?
Yes. Overtime wages are included when calculating vacation pay.
Do You Earn Vacation Pay on Commissions and Bonuses?
Commissions are included when they qualify as wages. Bonuses are included when they meet the legal definition of wages.
Can Vacation Pay Be Included on Every Paycheque?
Yes, if you and your employer agree to this arrangement in writing. You’re still entitled to statutory vacation time.
Can Your Employer Refuse to Pay Unused Vacation Pay?
No. Your employer can’t simply erase vacation pay you’ve earned. Outstanding vacation pay must be paid when your employment ends.
Do You Get Vacation Pay on Severance in BC?
Vacation pay is owed on statutory compensation for length of service and group termination pay. Other severance payments can involve different calculations and legal entitlements.
Know Your Vacation Pay and Employment Rights in BC
Employers must pay the vacation pay required by law. If your employer hasn’t included commissions, overtime or other eligible wages, you could be owed additional money.
If you’ve been fired, laid off or forced to resign, the BC employment lawyers at Samfiru Tumarkin LLP help non-unionized employees understand their severance and wrongful dismissal rights.
Your severance could reach up to 24 months’ pay. Use our Severance Pay Calculator to estimate what you’re owed.
Before you sign, always check first.
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