Vacation Pay in BC: 4% or 6%, When It's Paid and What Counts

That's from sections 57 and 58 of BC's Employment Standards Act and the Government of British Columbia's annual vacation page, as of October 2026. Vacation time and vacation pay are two separate entitlements, and BC is firm that one can't replace the other.

Vacation time and pay in BC

Length of employment	Annual vacation	Vacation pay
Less than 12 months	Earning it	4% on leaving
After 12 months	2 weeks	At least 4% of the previous year's wages
After 5 years	3 weeks	At least 6% of the previous year's wages

Taking a leave under the Act or the sale of the business doesn't interrupt length of employment.

What counts as wages for vacation pay

• regular wages, salary and commissions
• statutory holiday pay
• paid sick days required by Employment Standards
• previously paid vacation pay

That last item is the one people miss: vacation pay received becomes part of that year's total wages, so next year's vacation pay is calculated on it too. Commission salespeople get vacation pay on all commissions earned, and it can't be built into the commission rate. Commissions paid during their vacation aren't vacation pay.

When vacation pay must be paid

1. By default, pay it at least 7 days before the employee's vacation starts.
2. If you both agree in writing, pay it on every pay cheque instead.
3. When employment ends, pay all remaining vacation pay on the last cheque.
4. Pay 4% to anyone who leaves before completing a year, unless they were employed for 5 calendar days or less.

BC's worked example: an employee who completes their first year on February 28, 2021 and takes two weeks off in July is paid 4% of their gross earnings from March 1, 2020 to February 28, 2021 before they go. They get that vacation pay instead of their regular wages for the two weeks off.

Scheduling vacation time

Vacation must be taken within 12 months of being earned, and employees can't skip the time off and just take the pay. It's scheduled in blocks of 1 week or more unless the employee asks for less. Employers can schedule it around business needs, cancel vacations because of a staff shortage, or require people to take vacation when there isn't enough work, as long as everyone can still use their days within the 12 months.

Splitting vacation into shorter blocks

Section 57 says employers must allow an entitled employee to take their vacation in periods of one or more weeks. Shorter blocks are fine when the employee asks for them, which is how most single vacation days end up being taken.

Vacation in advance

Employees can ask to take days before they've earned them, and the request has to be in writing. If you agree, you can deduct those days from their entitlement once it's earned. If you don't make that clear at the time, it doesn't reduce their later entitlement.

Stat holidays and sick days during vacation

If a statutory holiday falls on a scheduled vacation day, the employee may qualify for statutory holiday pay, but they don't get an extra day off. Paid sick days count as wages for vacation pay, so they lift the next year's figure.

What can't reduce vacation

Section 59 stops employers trimming vacation or vacation pay because an employee was paid a bonus or sick pay, or because they were once given more vacation than the minimum. The only exception is vacation taken in advance at the employee's written request. An annual vacation also doesn't include statutory holidays, so a holiday inside a vacation week doesn't use up a vacation day.

You can move everyone to a common date for working out vacation entitlement, as long as no employee loses any of their rights under sections 57 and 58 in the switch.

Final vacation pay deadlines

Any vacation pay owed when a job ends is paid at the same time as final wages: within 48 hours if the employer ends the job, or within 6 days if the employee quits.

Farm workers and agreements above the minimum

Farm workers paid a piece rate have vacation pay included in that rate. Any agreement to give more vacation days or a higher percentage than the minimum can be enforced, so if your contract says 6% from day one, that's what you owe.

My verdict

Pay 4% or 6% on the full wage base, including last year's vacation pay and paid sick days, and get it out 7 days before the vacation unless there's a written agreement to pay each cheque. Then make sure the time off is taken within 12 months. For comparison, see vacation pay in Ontario, and check BC statutory holidays when a holiday falls inside someone's vacation.

Frequently asked questions

Is vacation pay 4% in BC?

Yes. Vacation pay is at least 4% of wages paid in the previous year, and at least 6% after an employee completes 5 years.

When should vacation pay be paid in BC?

At least 7 days before the employee's vacation starts, or on every pay cheque if the employee and employer agree in writing.

Can I take vacation pay instead of time off in BC?

No. Employees must take time off for annual vacation and can't skip it and just receive vacation pay.

Can my employer cancel my vacation in BC?

Yes, because of a shortage of employees, as long as you can still take your vacation days within 12 months of earning them.

Is vacation pay included in final pay in BC?

Yes. All vacation pay owed must be paid on the last pay cheque, within 48 hours if the employer ends the job or 6 days if the employee quits.

Do I get an extra day if a stat holiday falls during my vacation in BC?

No. You may qualify for statutory holiday pay for that day, but you don't get an additional day off.

Do I get vacation pay if I leave before a year in BC?

Yes. You're owed 4% vacation pay on your last cheque, unless you were employed for 5 calendar days or less.