Payroll – BC Statutory Holiday Calculations

Payroll – BC Statutory Holiday Calculations

Public holidays in Canada are known as statutory holidays (or simply “stat holidays”) where most businesses, banks and government offices close and the employees have a paid “day off”.

Employers are required to pay their employees for statutory holidays under certain rules.

The ten statutory holidays in BC are:

• New Year’s Day
• Family Day
• Good Friday
• Victoria Day
• Canada Day
• B.C. Day
• Labour Day
• Thanksgiving Day
• Remembrance Day
• Christmas Day

Determining Who is Eligible for a Stat Holiday

For normal, non-union employees:

1. Must be employed for at least 30 days prior to the statutory holiday, and

2. Must have worked at least 15 out of 30 days prior to the statutory holiday.

The exception is when an employee is working under an averaging agreement or variance at any time before the 30 days prior to the holiday, they are not required to meet the 15-day requirement.

How Employees Get Paid for the Stat Holiday

Salary: For salary employees, they receive their regular pay, and they take the day off work or a different day off as agreed.

Hourly Employees who took the day off: Employees who don’t work the statutory holiday are entitled to an average day’s pay.

Hourly Employees who work the stat holiday: Employees who worked on the statutory holiday are entitled to both pay and an average day’s pay:

     – 1.5x regular wage for the first 12 hours, then 2.0x for hours worked above 12 hours.

     – PLUS, an average day’s pay (for the stat holiday)

Calculating an Average Day’s Pay

This is calculated by a simple formula:
Total wages paid divided by number of days worked = stat pay

The “total wages paid” is for the past 30 days and includes regular pay, commissions, holiday pay, statutory holiday pay but excludes overtime.

Days worked is the number of days worked or earned wages within 30 calendar days including days on paid annual vacation and paid statutory holidays

Example of an Average Day’s Pay

Hourly employees are paid an average day’s pay for the stat holiday if they qualify.

e.g. Hourly employee worked on 21 days, earning $3,220 in past 30 calendar days preceding the stat holiday. He earned $210 in overtime during this period.

Stat holiday pay calculation (didn’t work on the Stat holiday):
($3,220 – $210) divided by 21 days worked = $143.33 in statutory pay. Thus, this employee would be paid for the regular hours worked plus the stat holiday pay of $143.33.

Calculation: Hourly Employees Who Work the Stat Holiday

Employees who worked on the statutory holiday are entitled to both pay (regular and overtime) AND an average day’s pay for the stat holiday:

E.g. an employee worked 10 hours on a stat holiday.

1. Regular hours e.g. 8 hours at an hourly rate of $15.00
2. Overtime: 1.5x regular wage for the first 12 hours, then 2.0x for hours worked above 12 hours. E.g. employee worked 2 hours overtime
3. PLUS, an average day’s pay (for the stat holiday)

Calculation for pay on the statutory holiday:

1. Regular hours 8 at $15.00 = $120.00
2. Overtime: 2 hours at 1.5x $15 = $22.50 per hour x 2 hours = $45.00 overtime.
3. Average day’s pay (for the stat holiday) $143.33
4. Total for that day: $120.00 + $45.00 + $143.33 = $308.33

Employees Who Are Not Eligible for Stat Holiday Pay

Employees who are not eligible for stat holiday pay but work on a stat holiday, will be paid their regular earnings, without any additional stat pay. E.g. 8 hours at regular rate of $15.00.

Calculation for working on the statutory holiday:

1. Regular hours 8 at $15.00 = $120.00
2. Total for that day: $120.00

If you have any questions or need any assistance, please contact us.

Creative Commons Attribution: Permission is granted to repost this article in its entirety with credit to New Heights Accounting and a clickable link back to this page.

Image credit: Pixabay 1593613

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