Understanding how statutory pay is calculated in BC is essential for every employer to stay compliant and avoid costly payroll mistakes.
Whether you’re managing a small business or a corporate payroll system, statutory pay (commonly called stat holiday pay) ensures employees are fairly compensated for working—or not working—on official BC statutory holidays.
At Cloud Accounting & Tax Services Inc. | CLaTAX, we help employers calculate, record, and report statutory pay accurately so they meet all Employment Standards BC requirements.
⚙️ Step 1: Determine Which Type of Statutory Pay Applies
In British Columbia, the three most common statutory pay types are:
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Statutory Holiday Pay – Compensation for working or taking the day off during public holidays such as Family Day, Victoria Day, or Canada Day.
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Vacation Pay – Paid as a percentage of earnings (4% if employed less than 5 years; 6% after 5 years).
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Overtime Pay – For hours exceeding 8 in a day or 40 in a week (paid at 1.5x or 2x the regular rate).
Each category follows specific rules, so start by confirming which type applies to your employee’s work period.
👉 Learn more in our BC Stat Holiday Pay Calculator post.
💰 Step 2: Calculate the Employee’s Regular Rate of Pay
The regular rate of pay forms the base for all statutory pay calculations.
Exclude any overtime, bonuses, or allowances.
Formula:
Regular Rate = Total Earnings ÷ Total Hours Worked
Example:
Suppose an employee earns $960 for 48 hours of work.
$960 ÷ 48 = $20/hour
This is the regular hourly rate you’ll use in subsequent calculations.
📅 Step 3: Determine Eligibility for Statutory Pay
Under BC’s Employment Standards Act, an employee is eligible for statutory holiday pay if they have:
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Been employed for at least 30 days, and
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Worked 15 of the last 30 days before the holiday.
If both conditions are met, the employee qualifies for an average day’s pay even if they don’t work on the stat holiday.
🧮 Step 4: Calculate the Statutory Pay Owed
Now that you have the regular rate and confirmed eligibility, apply the statutory multiplier.
Scenario 1: Employee Does NOT Work on the Statutory Holiday
They receive an average day’s pay based on the last 30 calendar days (excluding overtime).
Formula:
(Total wages ÷ Number of days worked) = Average Day’s Pay
Example:
Total wages (last 30 days): $2,700
Days worked: 15
$2,700 ÷ 15 = $180
So the employee earns $180 for the stat holiday (even if they didn’t work).
Scenario 2: Employee Works on the Statutory Holiday
They receive:
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1.5× pay for all hours worked plus
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An average day’s pay
Example:
Regular rate: $20/hour
Hours worked: 8 hours
1.5× pay: $20 × 1.5 × 8 = $240
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Average day’s pay: $180
✅ Total Statutory Pay = $420
🔁 Step 5: Adjust for Previous Statutory Pay
If any holiday pay or vacation pay was already issued in advance (e.g., for part-time or rotating employees), deduct it to avoid duplication.
Example:
If the employee already received $80 as an advance holiday credit:
$420 – $80 = $340 owed
✅ Quick Recap
| Step | Action | Formula | Example Result |
|---|---|---|---|
| 1 | Identify pay type | — | Stat Holiday |
| 2 | Find regular rate | $960 ÷ 48 | $20/hour |
| 3 | Check eligibility | 30 days + 15 worked | Eligible |
| 4 | Calculate pay | (1.5× × 8) + Avg Day | $420 |
| 5 | Deduct previous pay | $420 – $80 | $340 |
📘 Employer Tip
Employers must:
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Record all holiday pay calculations in payroll records
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Issue payment no later than the next regular payday
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Maintain records for at least 2 years
Using payroll software or an online calculator can simplify this process.
Try the free BC Stat Holiday Pay Calculator by Cloud Accounting & Tax Services Inc. | CLaTAX to automatically compute your employees’ entitlements.
💼 About the Company
Cloud Accounting & Tax Services Inc. | CLaTAX
Address: Glenlyon Corporate Centre, 4300 N Fraser Wy #163, Burnaby, BC V5J 5J8
📞 +1 (855) 915-2931
🌐 www.claccounting-tax.ca
✉️ info@cloudaccountings.net
Cloud Accounting & Tax Services Inc. | CLaTAX is one of British Columbia’s leading accounting and tax firms, providing reliable, cloud-based financial solutions to individuals and businesses across Canada. Founded and led by Anamika Biswas, CLaTAX is built on integrity, transparency, and innovation — delivering professional accounting, bookkeeping, payroll, GST/HST filing, and corporate tax services.
With over a decade of proven experience and hundreds of satisfied clients, CLaTAX helps business owners and individuals achieve financial clarity and compliance through expert guidance and technology-driven solutions.
