Vacation Time for a Nanny
Nanny Tax & Payroll

Vacation Time for a Nanny

by Trisha Heathcote

Your nanny is entitled to vacation time and vacation pay to ensure that she has rest from work, without loss of income each year. It doesn't matter if they work full-time or part-time, all employees are entitled to vacation. Each province has their own regulations regarding the basic standards, however if your nanny’s contract provides a better benefit than the minimum required, they may be entitled to a higher percentage of their gross earnings for vacation pay.

How much vacation time is my nanny entitled to?

The basic entitlement is a minimum of 2 weeks of vacation after working 1 full year from start date. Many times, your nanny may wish to take some or all of her vacation time before her first anniversary. If this is the case, she may be paid more vacation pay than she has earned, or accrued. This is fine, but there is the risk that your nanny will be overpaid for her vacation time if her employment ends before the first year.

If your nanny works a full 5 days per week, she is entitled to 10 days of vacation per year, or a full 2 weeks off of work. It is then pro-rated if she works part-time; for example, if she works 3 days per week, she would only be entitled to 6 days of vacation per year.

When can my nanny take vacation?

A nanny may take vacation at the discretion of the family or a time mutually agreed to by both parties. If the family chooses the timing of the vacation, they must give at least 2-4 weeks’ notice before the annual vacation would begin. We strongly recommend this is outlined in the employment contract to be sure both sides are in agreement.

How is the vacation pay calculated?

Most provinces follow the general rule of 4% of the annual gross wages when the vacation entitlement is 2 weeks and 6% of the annual gross wages if the entitlement increases to 3 weeks. Check your provincial employment standards to verify, or contact our nanny payroll department at 1-877-795-1164 or

Here’s an example: Mary is entitled to 2 weeks of vacation and works 40 hours per week (8 hours per day, 5 days per week) and earns $12.00 per hour. Her gross annual salary is $24,960.00. She will earn $998.40 for her 2 weeks of vacation, which if divided into 10 days means she would earn $99.84 per day of vacation.

Can my nanny be paid vacation pay each pay day?

Yes, if mutually agreed upon, your nanny can have their vacation pay paid out each pay period. That means that when your nanny takes any time off, it will be unpaid time off. This is common for part-time nannies.

What happens when my nanny’s employment ends?

The nanny must be paid out any unused vacation pay owing to them that they have accrued or “banked”.

If you want help navigating your way through  your nanny's payroll and taxes, our payroll service can help! Call us at 1-877-795-1164 or email today!

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