Canadian Overtime Calculator

Calculate overtime pay with BC/Alberta "whichever is greater" rule, federal employee rules, stat holiday pay, banked time, and vacation pay accrual.

Province Selection
British Columbia: Daily OT (1.5x after 8h, 2x after 12h), Weekly OT (1.5x after 40h), whichever is greater

Banks, airlines, telecom - follow Canada Labour Code (8h/day, 40h/week)

Hourly Rate
7-Day Work Week
Enter hours worked each day. Overtime is calculated automatically based on province rules.
Regular:8.00h
Regular:8.00h
Regular:8.00h
Regular:8.00h
Regular:8.00h
Multiple Pay Rates (Weighted Average)
If you have different hourly rates in the same week, calculate weighted average OT.
Statutory Holiday Pay
Calculate stat holiday pay (average day's pay + premium if worked on holiday).
Vacation Pay Accrual
Vacation pay is mandatory in Canada (4% for <5 years, 6% for 5+ years). You can disable it for comparison purposes.

Vacation pay is mandatory by law but can be disabled for calculations

Vacation Pay: 4% of gross pay

Banked Time (Time in Lieu)
Calculate how many paid time off hours you can bank instead of taking overtime pay.
Pay Summary
Regular Hours:40.00h
Overtime Hours (1.5x):0.00h
Regular Pay:$1,000.00 CAD
Overtime Pay:$0.00 CAD
Vacation Pay (4%):$40.00 CAD
Total Gross Pay:$1,040.00 CAD
How Canadian Overtime Rules Work

Canadian overtime laws vary significantly by province. While the federal Canada Labour Code applies to banks, airlines, and telecom companies, each province has its own employment standards legislation.

British Columbia, Alberta & Manitoba: "Whichever is Greater"

These provinces use a unique "whichever is greater" rule that compares daily overtime vs weekly overtime and uses whichever pays more:

  • BC: Daily OT (1.5x after 8h, 2x after 12h), Weekly OT (1.5x after 40h) - whichever is greater
  • Alberta: Daily OT (1.5x after 8h), Weekly OT (1.5x after 44h) - whichever is greater
  • Manitoba: Daily OT (1.5x after 8h), Weekly OT (1.5x after 40h) - whichever is greater

This ensures employees always receive the maximum overtime pay, whether it comes from daily or weekly calculations.

Ontario: 44-Hour Threshold

Ontario has a 44-hour weekly threshold (compared to 40 hours federally). However, federal employees in Ontario still use the 40-hour threshold under the Canada Labour Code.

Federal Employees (Canada Labour Code)

If you work for a federally regulated industry (banks, airlines, telecom, shipping, railways), you follow the Canada Labour Code regardless of your province:

  • Daily OT: 1.5x pay after 8 hours in a day
  • Weekly OT: 1.5x pay after 40 hours in a week
Statutory Holiday Pay

Statutory holiday pay in Canada is complex and varies by province, but generally includes:

  • Average Day's Pay: If you don't work the holiday, you receive your average day's pay
  • Premium Rate: If you work the holiday, you receive your average day's pay PLUS 1.5x premium for hours worked

Ontario/Quebec: Calculate 1/20th of wages from the last 4 weeks (simplified: weekly pay ÷ 5)

BC/Alberta: Use average day formula (total wages ÷ days worked in last 30 days, simplified: weekly pay ÷ days worked)

Banked Time (Time in Lieu)

Canadians often "bank" overtime hours instead of taking cash pay. Banked time allows you to take paid time off later at a premium rate.

  • Standard Ratio: 1:1.5 (1 hour of OT = 1.5 hours of paid time off)
  • Alberta 2026: Default ratio is 1:1 (1 hour OT = 1 hour PTO) unless a special agreement is in place
  • Federal Employees: Use standard 1:1.5 ratio

Example: If you work 6 hours of overtime, you can bank 9 hours of paid time off (6 × 1.5 = 9) under standard rules, or 6 hours under Alberta's default 1:1 ratio.

Vacation Pay Accrual

In Canada, vacation pay is calculated on top of your gross earnings, including overtime:

  • Less than 5 years of service: 4% vacation pay
  • 5 years or more of service: 6% vacation pay

This calculator automatically adds vacation pay to your total gross pay before pushing it to the tax calculator, ensuring accurate tax calculations that include vacation pay.