What are the vacation pay percentages based on years of employment?

What are the vacation pay percentages based on years of employment?

• A. 6% for five years or more; 4% for less than five years.
• B. 5% for five years or more; 3% for less than five years.
• C. 7% for five years or more; 5% for less than five years.
• D. 4% for five years or more; 6% for less than five years.

Answer: (A)

The important idea here is how vacation pay is calculated based on how long an employee has worked. Under Ontario’s standards, vacation entitlement is two weeks for employees with less than five years of service and three weeks after five years. Vacation pay is a percentage of the employee’s gross wages for the vacation entitlement year: 4% for those with two weeks of vacation (less than five years) and 6% for those with three weeks (five years or more). So the correct rule is 6% for five years or more, and 4% for less than five years.

The important idea here is how vacation pay is calculated based on how long an employee has worked. Under Ontario’s standards, vacation entitlement is two weeks for employees with less than five years of service and three weeks after five years. Vacation pay is a percentage of the employee’s gross wages for the vacation entitlement year: 4% for those with two weeks of vacation (less than five years) and 6% for those with three weeks (five years or more). So the correct rule is 6% for five years or more, and 4% for less than five years.