First things first: what constitutes as a statutory holiday in BC?
The holidays that do qualify are as follows:
- New Year’s Day
- Family Day
- Good Friday
- Victoria Day
- Canada Day
- B.C. Day
- Labour Day
- Thanksgiving Day
- Remembrance Day
- Christmas Day
If a statutory holiday falls on a weekend, the following business day is observed as a holiday (except for July 1st ). For salary employees, they’ll receive their regular pay, and an agreed upon additional day off.
So, who is eligible for statutory holiday pay?
For normal non-union environments, employees:
- must be employed for at least 30 days prior to the statutory holiday, and
- have workedat least 15 out of 30 daysprior as well.
However, if an employee is working under an averaging agreement or variance at anytime before the 30 days prior to the holiday, they are not required to meet the 15 day requirement.
Now how do you calculate statutory holiday pay?
Eligible employees who don’t work the statutory holiday, due to a day off, or a general day off, are entitled to be paid an average day’s pay. So how do you calculate that?
Here’s the equation:
- Amount paid ÷ number of days worked = statutory pay
The amount paid or “total wages” refers to:
- Wages earned in past 30 days preceding statutory holiday.
- This includes: regular wages, commissions, statutory holiday pay and annual vacation pay and excludes overtime.
Days worked refers to:
- Number of days worked or earned wages within 30 calendar days
- This includes: days on paid annual vacation, paid statutory holidays
Peter worked 22 shifts, earning $5,280 in past 30 calendar days preceding the statutory holiday. During this period, he earned $480 in overtime.
To calculate his statutory holiday pay:
- ($5280 – $480) / 22 days worked = $218.18 in statutory pay.
If Peter is given the day off on a statutory holiday, he is still entitled to $219.18. But if he works on the statutory holiday, then he is also paid:
- 1.5x regular wage for the first 12 hours worked
- Or 2.0x regular wage for hours worked above 12 hours
- Plus an average day’s pay
For example, if Peter works 8 hours on a statutory holiday, he will be paid:
- (1.5 x $30) x 8 hours + $219.18 = $579.18
But for those who are not eligible for statutory holiday pay and work on a statutory holiday, they will be paid their regular earnings, without any additional pay.
Statutory holidays can be confusing and a headache to calculate. When manually calculating statutory holiday pay, you must double and sometimes even triple, check your calculations. Statutory holiday rules vary province to province and it will cost you if you aren’t careful.
But being meticulous takes hours, which results in exhaustion, which in turn causes mistakes…which can all be avoided by automating payroll.