Holiday Pay for New Year’s Day 2018 is Different!

Under the new Bill 148 Changes, the way that Public Holiday Pay is calculated will change effective January 1 2018.

This means that the way you calculate the holiday pay for Christmas and Boxing Day 2017 will be different than the way you calculate the pay for January 1 2018.

Current Rule:   the total amount of regular wages earned and vacation pay payable to the employee in the four work weeks before the work week in which the public holiday occurred, divided by 20. (Use this calculation for Christmas and Boxing Day 2017).

New Rule:  (for New Year’s Day) the total amount of regular wages earned in the pay period immediately preceding the public holiday, divided by the number of days the employee worked in that period. NOTE that vacation pay is removed from the calculation, and the time period is much shorter. 

If your employee does not work during the pay period before the holiday, you must use the pay period that contains the holiday (unless they are on leave or vacation).

Call me today to get your policy updated before the new rules take effect!