Vacation Pay In British Columbia
Calculating Vacation Pay
Is the 6% vacation pay figure on gross wages and commissions in British Columbia to be paid only after year five?
For example, 4% would up to and including the 5th year = 2 weeks. After year five, it would be 6 % = 3 weeks.
I am not a payroll expert. However, it is my understanding that the Employment Standards say the minimum vacation pay
for years 1 through 5 is 4%.
Employers can pay their employees more than that. Some employers may pay higher than the required 4% when they hire someone with experience.
After 5 years, the minimum vacation pay is 6% ... but again, it is only a minimum.
The Employment Standards Branch has an annual vacation factsheet
where you can find more information.
While we are on the topic of vacation pay, it should be noted that there are two ways to pay out vacation pay.
The first is to pay it on each pay cheque.
The second is to pay it when the employee goes on vacation ... you may need to make a request in advance of your vacation to have it paid prior to your holiday.
If the vacation pay is paid out with each pay cheque, there must be an agreement signed by the employee permitting this.
I think the reason is that when the vacation pay is paid out with every cheque, the employee will receive no cheque when they go on vacation. This may create financial difficulties for many employees.