Vacation Pay in Quebec 2026: 4% or 6%, How Is It Calculated?
In Quebec in 2026, your vacation indemnity — your "vacation pay" — is 4% of the gross wages you earned during the reference year if you have less than 3 years of uninterrupted service, and 6% if you have 3 years or more. At 4%, you get 2 weeks of leave; at 6%, you get 3 weeks. The calculation uses gross pay, not net pay.
Check what this means on your real pay: enter your gross salary in our Quebec pay calculator to see your deductions (QPP, QPIP, employment insurance, tax) — then apply 4% or 6% to your gross reference-year pay, not to the net amount.
What is vacation pay in Quebec?
Vacation pay is the amount your employer must pay you for your annual leave under the Act respecting labour standards. The CNESST defines it using three factors: your employer's reference year, your years of uninterrupted service at the end of that year, and the gross wages you earned during the reference year.
It is not a bonus or a gift from your employer: it is a legal minimum. Your employer can offer more — more weeks or a higher percentage — but never less than the floor set by law. Full-time or part-time, the rule is the same: you earn leave and vacation pay every year.
4% or 6%: which percentage applies to you in 2026?
The percentage depends on a single test: your years of uninterrupted service with the same employer at the end of the reference year. Less than 3 years: 4% and 2 weeks of leave (or 1 day per full month if you have less than one year, up to 2 weeks). At 3 years or more: 6% and 3 consecutive weeks.
| Uninterrupted service at the end of the reference year | Weeks of vacation | Vacation pay |
|---|---|---|
| Less than 1 year | 1 day per full month (max 2 weeks) | 4% of gross wages |
| 1 year to less than 3 years | 2 consecutive weeks | 4% of gross wages |
| 3 years or more | 3 consecutive weeks | 6% of gross wages |
One point many people miss: if you reach 3 years during the reference year, the 6% applies to all the gross wages of that year, including the months worked before your anniversary date. The CNESST gives the example of an employee who reaches 3 years in September: her employer calculates 6% on the full 12 months of the reference year.
How do you calculate your vacation pay, step by step?
The calculation takes three steps: add up all the gross wages you earned during the reference year, pick the right percentage for your service, then multiply. For example, $25,600 in gross pay at 4% gives $1,024 in vacation pay for 2 weeks — that is the CNESST's own example.
Original example No. 1 — full-time at the 2026 minimum wage. The general minimum wage has been $16.60 an hour since May 1, 2026. At 40 hours a week for 52 weeks, annual gross pay is $34,528. At 4%, vacation pay is $1,381.12 for 2 weeks. At the same salary, after 3 years of service, 6% gives $2,071.68 for 3 weeks — a difference of $690.56, simply because the percentage and the length of leave both change.
To put that gross amount in context against what actually lands in your pocket, compare it with our Quebec pay calculator and our guide on understanding your Quebec paycheck: vacation pay is always calculated before deductions.
What wages does the 4% or 6% actually apply to?
The percentage applies to the gross wages earned during the reference year — and that gross amount includes more than your base salary. Overtime, tips and commissions are part of wages for this calculation, as the CNESST notes in its training material.
Original example No. 2 — the omission that costs $200. A salesperson earns $28,000 in base salary, $2,000 in overtime and $3,000 in commissions during the reference year, for total gross pay of $33,000. At 4%, her correct vacation pay is $1,320. If the employer calculates only on base salary, it pays $1,120 — $200 is missing. That is the most common error: not the percentage, but amounts left out of the base.
So check your records: add base salary, overtime, reported tips and commissions for the reference year before you multiply.
What is the reference year, and why does it change your dates?
The reference year is the 12-month period during which your vacation is earned. In most Quebec businesses, it runs from May 1 to April 30. You then take your vacation in the 12 months following the end of that year, unless your employer agrees to let you take it during the reference year itself.
Your employer can set other dates — by decree or collective agreement, for example January 1 to December 31. That year-end date is what determines your uninterrupted service, and therefore your move from 4% to 6% and from 2 to 3 weeks. Your employer must also tell you your vacation dates at least 4 weeks in advance.
When and how must vacation pay be paid?
Vacation pay must be paid to you in a single payment before you leave on vacation, or at the time of the regular pay covering your leave period. In general, you cannot swap your vacation for cash: no compensatory amount can replace the leave itself, except where a collective agreement or decree provides otherwise.
One important exception: in seasonal or intermittent activities — tourism, agriculture, fisheries — the employer can add vacation pay to each paycheque. That is why some workers see a "4%" added to every pay: in that form, it is legal only in those sectors, or where an applicable agreement provides for it. If you leave your job, the vacation pay you have earned but not yet received must be paid to you with the other amounts you are owed.
What should you do if your vacation pay is too low?
Start by redoing the calculation yourself: reference-year gross pay, the right percentage, the matching number of weeks. Then compare it with your pay stub and ask your employer for the breakdown in writing — many gaps come from forgotten commissions, tips or overtime, and are fixed without a dispute.
If the gap remains, the CNESST is the body that enforces the Act respecting labour standards in Quebec: you can contact it to check your entitlement and, if needed, file a monetary complaint. Keep your pay stubs for the whole reference year: they are the proof of the gross wages you earned.
Frequently asked questions
Is vacation pay in Quebec calculated on gross or net wages?
It is calculated on the gross wages earned during the reference year, before deductions such as QPP, QPIP, employment insurance and tax. At 4%, $40,000 in gross pay gives $1,600 in vacation pay; at 6%, it gives $2,400. The net you receive afterwards depends on your usual deductions, but the percentage itself always applies to gross pay.
After how many years do you move from 4% to 6% vacation pay?
The move happens at 3 years of uninterrupted service with the same employer, measured at the end of the reference year. At the same time, you move from 2 to 3 weeks of vacation. If you reach 3 years during the reference year, the 6% applies to all the gross wages of that year, not just the months after your anniversary date.
Do overtime and commissions count in the calculation?
Yes. The calculation uses the gross wages earned during the reference year, and overtime, tips and commissions are part of those wages, according to the CNESST. Leaving out $5,000 in commissions and overtime at 4% costs $200 in vacation pay. Add all of those components before applying your percentage.
Can my employer pay the 4% on each paycheque instead of before my vacation?
As a general rule, no: vacation pay must be paid in a single payment before you leave on vacation, or on the pay covering your leave. Adding it to each paycheque is an exception for seasonal or intermittent activities such as tourism, agriculture and fisheries, or where an applicable collective agreement provides for it.
Do part-time employees get the same vacation pay in Quebec?
Yes. Full-time or part-time, you earn vacation and vacation pay under the same rules: 4% of gross wages before 3 years of uninterrupted service, and 6% from 3 years on. Only the amounts change, because they follow the gross wages you actually earned during the reference year.
What happens to my vacation pay if I leave my job?
Vacation pay you earned during the reference year but have not yet received must be paid to you when you leave, along with other amounts owed such as your final salary and any unpaid overtime. Check your final pay stub: reference-year gross pay multiplied by 4% or 6%, minus what was already paid, should appear there.