Ontario employers use a specific method to determine statutory holiday pay for employees who work irregular hours. This guide walks through the core rule, where people slip up, and a worked example you can sanity-check against RoostPay’s calculations. Use it as a layout stress test: long copy below exercises the sticky table of contents and scroll tracking.
The 1/20th Rule
Pro-tip
In many cases, stat pay is based on 1/20th of the wages earned in the four work weeks before the work week that contains the holiday—subject to ESA rules and any applicable exemptions. Always confirm the current regulation text for your scenario.
The fraction is a practical way to approximate average daily pay from recent earnings. If your payroll period or pay frequency differs, the counting window still anchors to “work weeks” as defined in the legislation—not necessarily your pay run dates.
Common Mistakes
Compliance alert
Misclassifying stat-eligible earnings, using the wrong four-week lookback, or mixing provincial rules with federal Canada Labour Code rules can materially change results. When in doubt, document assumptions and seek professional advice for edge cases.
Double-check that you are applying Ontario’s Employment Standards Act (and any special rules for your industry) rather than generic online calculators that may assume a different jurisdiction.
Example Calculation
Regular wages (4 work weeks before holiday week) = W
Stat holiday pay ≈ W / 20
Example:
W = $4,000.00
Stat pay ≈ $4,000.00 / 20 = $200.00
Replace W with your total qualifying wages for the prescribed period. Rounding and
inclusion rules for specific pay types can change the numerator—this block is illustrative only.
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