Vacation Pay in BC – An Employer’s Guide

Vacation Pay in BC – An Employer’s Guide

Understanding vacation pay is incredibly important for businesses with employees in British Columbia. Not only is it a requirement of the province’s Employment Standards Act, but it’s also an essential part of creating a successful work environment. Vacation pay helps to ensure that workers are able to take time off from their job without worrying about losing out on income–it ensures employees have access to paid time away from their daily responsibilities and obligations as a reward for their hard work.


The Government of BC makes the Employment Standards Act and Regulation available online.

How is Vacation Pay Calculated in BC?

 An employer must pay an employee the following amount of vacation pay:

(a) after 5 calendar days of employment, at least 4% of the employee’s total wages during the year of employment entitling the employee to the vacation pay;

(b) after 5 consecutive years of employment, at least 6% of the employee’s total wages during the year of employment entitling the employee to the vacation pay.Do I Have to Pay My Employees Vacation Pay?
Vacation pay must be paid to an employee

  1. at least 7 days before the beginning of the employee’s annual vacation, or
  2. on the employee’s scheduled paydays, if
    1. agreed in writing by the employer and the employee, or
    2. provided by the collective agreement.

Do I have to Pay an Employee Vacation Pay if they Quit?

Any vacation pay an employee is entitled to when the employment terminates must be paid to the employee at the time set by section 18 of the Employment Standards Act.

Get professional advice on vacation pay with Magenta HR

If you’re unsure about how to handle your employees’ vacation pay, Magenta HR can help. We’ll work with you to calculate the appropriate pay or advise whether it is necessary based on employment details.

Managing your employees’ vacation pay in BC

Vacation pay is part of the minimum wage guidelines set by the provincial government, which helps prevent companies from taking advantage of workers by withholding holiday pay or not providing it altogether. Keeping up-to-date with these regulations and requirements is essential in order to provide employees with the wages they are entitled to, as well as foster a positive workplace culture that values its team members. Understanding vacation pay can help businesses in British Columbia stay compliant and create an atmosphere where both employers and employees benefit from fair practices and policies.

Our experts at Magenta HR are available to advise you with any questions related to vacation pay – we can help assess your unique situations and advise you on the right course of action. Contact us today!