In Quebec, vacation pay is 4% of the gross wages earned during the reference year, or 6% once an employee has 3 years of continuous service with the same employer. Enter the gross wages and the length of service below to get the exact amount along with the matching vacation entitlement.
The reference year usually runs from May 1 to April 30.
- Applicable rate
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- Length of vacation
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- Vacation indemnity
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This tool is provided for information purposes only. A collective agreement or an employment contract may provide better terms than the minimum standard.
Frequently asked questions
When does the rate go from 4% to 6%?
As soon as the employee has 3 years of continuous service with the same employer at the end of the reference year. Below that, the indemnity is 4% of gross wages; at or above it, the indemnity is 6%. The threshold has been 3 years since January 1, 2019 — many pages online still say 5 years.
What is the reference year?
It is the 12-month period over which an employee earns their vacation entitlement. Unless stated otherwise, it runs from May 1 to April 30. The vacation must then be taken within the 12 months following the end of that period.
Are the indemnity and the length of the vacation the same thing?
No, and this is the most common confusion. The length is the number of weeks off you are entitled to (2 or 3 depending on seniority). The indemnity is the money paid out, calculated as a percentage of gross wages for the reference year. An employee at 6% gets 3 weeks; an employee at 4% with at least one year of service gets 2 weeks.
When must the indemnity be paid?
In a single payment, before the vacation starts. It cannot be spread over subsequent pay periods unless the law allows it.
What happens when an employee leaves?
The employer must pay out any accrued but unpaid indemnity with the final pay. This covers the current reference year as well as any remaining indemnity from the previous one.
4% or 6%: how to decide
| Continuous service at the end of the reference year | Indemnity | Length of vacation |
|---|---|---|
| Less than 1 year | 4% | 1 day per month of service, up to 2 weeks |
| 1 to 3 years | 4% | 2 continuous weeks |
| 3 years or more | 6% | 3 continuous weeks |
The 3-year threshold has applied since January 1, 2019. Before that it was 5 years, and plenty of online articles — including HR policy templates — were never updated. If you find “5 years” somewhere, the text is out of date.
“Continuous service” runs from the hire date, not from hours worked. A part-time employee accrues seniority at the same pace as a full-time one. An absence for illness, parental leave or vacation does not break continuity of service.
The reference year
The indemnity is calculated on the gross wages earned during a 12-month period called the reference year. Unless the employer, a decree or an agreement provides otherwise, it runs from May 1 to April 30.
The vacation must then be taken within the 12 months following the end of that period. In other words, vacation taken in the summer of 2026 is paid out of wages earned between May 1, 2025 and April 30, 2026.
That lag explains two situations that often catch people out:
- an employee hired in February will have earned little during their first reference year, so the indemnity is small even though they are entitled to days off;
- a raise only affects the indemnity the following year, since the calculation is based on wages already earned.
Length of vacation and indemnity are two different things
This is the most common confusion on the topic, and it affects employers as much as employees.
The length is the number of weeks off the employee is entitled to: 2 or 3 depending on seniority. The indemnity is the money paid out, calculated as a percentage of gross wages for the reference year.
The two do not move in lockstep. An employee reaching 3 years of service goes from 2 to 3 weeks and from 4% to 6% at the same time — that is the simple case. But an employee with more than 1 year and less than 3 is entitled to a full 2 weeks of vacation while their indemnity stays at 4%.
Which wages count?
The calculation is based on gross wages earned during the reference year. That includes base salary, overtime, commissions and bonuses tied to work performed.
If you are unsure about a specific component of the compensation — tips, discretionary bonuses, taxable benefits — check with the CNESST before deciding: the answer depends on the exact nature of the payment.
Paying the indemnity
The indemnity must be paid in a single amount, before the vacation starts. It cannot be spread over subsequent pay periods outside the cases allowed by law.
When employment ends, the employer must pay out with the final pay any indemnity that has accrued but not yet been paid. That covers the current reference year plus any remaining balance from the previous one. It is a frequent oversight when someone leaves mid-year.
What this calculator does not do
It applies the minimum standard of the Act respecting labour standards. It does not account for:
- a collective agreement or contract that is more generous than the standard;
- source deductions applicable to the indemnity;
- special regimes in certain industries.
Vacation pay is employment income: it is subject to the usual deductions. The amount shown here is a gross amount.