Ontario Updates Public Holiday Formula

May 17, 2018
min read

As of July 1st, 2018, changes will come into effect with regards to public holiday pay entitlements for employees in Ontario.

Most commonly, employees have the right to take a public holiday day off and receive public holiday pay. However, if a public holiday falls on a day that is not normally a working day, the employee is entitled to a substitute holiday day off (with pay), or public holiday pay for the skipped holiday (on top of their regular wage).

In 2017, a new law was enacted under the name of the FWBJA (Fair Workplaces, Better Jobs Act), which updated the formula for public holiday pay to the current state (as of this article’s writing). This particular element of the new law was poorly received because it appeared to be a worse deal for employees and employers alike.

The Ministry of Labour has now taken action to remedy the situation. The new formula, as of July 1st, 2018, will be as follows: Sum all wages earned over the preceding four weeks (prior to the public holiday, including vacation pay). Then divide this figure by 20.  

This is a significant update from the old formula, which involved a more complicated set of steps taking into account your company's custom pay period, specific sets of days worked by each given employee and their respective wage rate over that custom period.

Topics in this article
About the Author
Kevin KlimanKevin Kliman

Former dentist turned startup powerhouse, this founder's journey into tech looked a little different than others. Between co-founding Instaradio in 2012 to helping create Humi in 2015, Kevin worked as a dentist for one day a week into the first six months of Humi’s company history. Outside of being Humi’s CEO, Kevin loves spending time thinking about the future of work.

Subscribe to Humi Blog
You can unsubscribe anytime. Privacy policy.

Subscribe to Think with Humi

Advice from Humi's leaders

Our newsletter is written by some of the brightest minds at Humi, with expertise in a wide range of topics: from customer experience to finance, and everything in between.

Not your typical content

We know that the world of business is constantly evolving – so you don’t need to be told the same advice you've been hearing for years. We keep things fresh and give you innovative ideas that come out of our experiences working at a startup.

Practical resources

We always try to provide a list of resources that we find useful. If a template or an article has helped us, it’s probably going to help you too.

Explore Topics