Free tool · Alberta Employment Standards
Alberta vacation pay calculator
Enter what you know about the employee. The calculator applies Alberta's vacation pay rates and shows the working.
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Alberta vacation pay calculator
Employer estimate
Wages paid for work only. Leave out overtime pay, general holiday pay, termination pay, unearned bonuses, tips, expenses and allowances. Include last year's vacation pay, unless you pay vacation pay often, such as each pay period or quarterly.
Estimated vacation pay earned
$2,080.00
= $52,000.00 × 4%
- Rate
- 4% of wages
- Vacation time
- 2 weeks a year
Vacation must be taken within 12 months after it is earned. This is an estimate of Alberta minimums. A contract or policy can grant more. There are exemptions for certain occupations.
Making vacation work for your workplace
A clear vacation process helps employees plan their time off and helps you keep the business running.
Make sure everyone understands how to request vacation, who approves it, and how competing requests are handled. Check balances throughout the year and start conversations early when someone has significant unused time.
If the same questions keep coming up, your policy or communication may need attention. I can help you make both clearer.
How vacation pay is calculated in Alberta
Alberta vacation pay is a percentage of the wages an employee earns for work. Employees with less than 5 years of service get at least 4% of wages (or 2 weeks). Employees with 5 years or more get at least 6% (or 3 weeks).
Alberta generally includes the previous year's vacation pay in the calculation. The exception is when vacation pay is paid frequently, such as each pay period or quarterly. There are exemptions for certain occupations.
For an employee on a monthly salary, you calculate one week of vacation pay by dividing the monthly wage by 4.3333. Two weeks of vacation is that amount times 2.
You can pay vacation pay on each regular pay, at least once a month. If it has not been paid that way and the employee asks, pay it at least one day before the vacation starts. Either way, it is due no later than the next regular payday after the vacation begins.
Please note: Vacation can also be banked, with employees with less than 5 years of service receiving 2 weeks per year. Employees with 5 years or more receive 3 weeks.
Vacation pay
- Under 1 year: no vacation time is required unless the contract gives it. Vacation pay still builds (or time banks) at 4%.
- After each of the first 4 years: 2 weeks of vacation, paid at 4%.
- After 5 consecutive years: 3 weeks of vacation, paid at 6%. Alberta's minimum stays at 3 weeks and 6%. Many employers offer more.
Vacation pay when an employee quits
Earned but unpaid vacation pay is due with the final pay: within 10 consecutive days after the end of the pay period in which employment ended, or 31 consecutive days after the last day of work.
Questions employers ask
Can an employee cash out vacation pay in Alberta?
Alberta’s rule is that employees must take the vacation they are entitled to, within 12 months after they earn it. Vacation pay can be paid on each pay period, but the time off should still be taken.
Is “use it or lose it” allowed in Alberta?
In short, no. If you cannot agree on dates, the employer can set them with at least 2 weeks’ written notice of the vacation start date.
Does vacation pay include overtime?
No. Alberta vacation pay is based on wages paid for work. Overtime pay, general holiday pay, termination pay, unearned bonuses, tips, expenses and allowances are not included in vacationable earnings.
This page is general information about Alberta employment rules. It is not legal advice. For a situation of your own, book a call or speak with an employment lawyer.
Vacation questions coming up more often?
Whether you need a clearer policy, a more consistent process, or help talking through a concern, let’s discuss what would work for your workplace.