Overtime Pay Calculator Canada 2026

How does overtime pay work in Canada?

<strong>Overtime pay in Canada is regulated at the provincial and territorial level, and the rules vary significantly from one jurisdiction to another.</strong> There is no single national overtime standard. Each province sets its own weekly threshold (and sometimes a daily threshold) beyond which employers must pay overtime rates.

In every Canadian jurisdiction, the base overtime rate is 1.5 times the employee's regular hourly rate, commonly called "time and a half." British Columbia also has a double-time provision for hours exceeding 12 in a single day.

The weekly overtime threshold ranges from 40 hours in Quebec, Manitoba, British Columbia, Saskatchewan, Newfoundland, and federal workplaces to 48 hours in Nova Scotia and Prince Edward Island. Ontario and Alberta set the threshold at 44 hours per week.

Several provinces also apply daily overtime thresholds. In British Columbia, Alberta, Saskatchewan, Manitoba, and the federal jurisdiction, overtime begins after 8 hours worked in a single day regardless of the weekly total. This means an employee could qualify for overtime even if they work fewer than 40 hours in the week but exceeded 8 hours on specific days.

Overtime thresholds by province

<strong>The overtime threshold determines when your employer must start paying you at 1.5x your regular rate.</strong> The table below shows the weekly and daily overtime thresholds for every Canadian jurisdiction.

Provinces with only a weekly threshold (Ontario, Quebec, New Brunswick, Newfoundland, Nova Scotia, PEI) apply overtime strictly based on total weekly hours. Provinces with both daily and weekly thresholds (BC, Alberta, Saskatchewan, Manitoba, NT, NU, Yukon, Federal) apply whichever triggers first.

Nova Scotia and PEI have the highest weekly thresholds at 48 hours, meaning employees must work a full extra day beyond a standard 40-hour week before earning overtime. Quebec, by contrast, triggers overtime at exactly 40 hours, the standard full-time threshold.

Daily overtime vs weekly overtime

<strong>Some provinces apply overtime on a daily basis, while others only look at weekly totals.</strong> This distinction matters significantly for employees who work long shifts but fewer days per week.

In British Columbia, for example, an employee working four 10-hour shifts (40 hours total) would earn 2 hours of daily overtime each day (for the hours beyond 8) even though they have not exceeded the 40-hour weekly threshold. This results in 8 hours of overtime pay that week.

In Ontario, the same schedule (four 10-hour shifts, 40 hours total) would generate zero overtime because Ontario only applies a 44-hour weekly threshold with no daily limit. The employee would need to work more than 44 hours in the week to earn overtime.

For employees who regularly work compressed schedules or long shifts, the presence or absence of a daily overtime threshold can make a difference of thousands of dollars per year in overtime pay.

Who is exempt from overtime in Canada?

<strong>Not all employees are entitled to overtime pay.</strong> Each province has a list of exempt or special-rule occupations that are partially or fully excluded from overtime provisions.

Common exemptions across most provinces include managers and supervisors (those whose primary duties are managerial), certain professionals (doctors, lawyers, architects, engineers, accountants), IT professionals in some jurisdictions, farm workers in several provinces, and commission-based sales employees outside of the workplace.

Ontario exempts a broad list of occupations from overtime, including information technology professionals, registered health professionals, teachers, and certain local government employees. British Columbia exempts managers, high-tech professionals under specific conditions, and agricultural workers.

If you are uncertain whether you qualify for overtime, check your provincial employment standards legislation or contact your province's employment standards office. Misclassifying an employee as exempt when they are not is a common employer error.

Overtime averaging agreements

<strong>Several provinces allow employers and employees to enter into averaging agreements that spread hours over multiple weeks to determine overtime eligibility.</strong> This is common in industries with variable schedules such as healthcare, oil and gas, and transportation.

In British Columbia, an employer can apply for a variance or enter a written averaging agreement with an employee to average hours over 2, 3, or 4 weeks. Overtime is then calculated based on the average rather than individual weeks.

Alberta allows averaging agreements of up to 12 weeks. If the average hours over the agreed period stay below the overtime threshold, no overtime is owed, even if individual weeks exceeded the threshold.

Ontario permits averaging agreements in writing between employer and employee, typically over a period that does not exceed 4 weeks. The agreement must be voluntary and revocable with proper notice.

For employees subject to averaging agreements, their actual weekly overtime pay may be lower than what this calculator estimates, since the calculator applies the standard weekly threshold without averaging.

Banked overtime (time off in lieu)

<strong>In most Canadian provinces, employees can agree to bank overtime hours and take paid time off later instead of receiving overtime pay.</strong> This is sometimes called "time off in lieu" or "lieu time."

The key rule is that banked overtime must be compensated at the overtime rate. If you bank 1 hour of overtime, you are entitled to 1.5 hours of paid time off. An employer cannot offer straight-time banking (1 for 1) unless the provincial legislation specifically permits it.

In Ontario, overtime can be banked if both the employer and employee agree in writing. The banked time must be taken within 3 months of the work week in which it was earned, or within 12 months if the employee agrees. If not taken, the employer must pay out the overtime at the 1.5x rate.

In British Columbia, banked overtime must be used within 6 months. Alberta allows banking with written agreement and requires payout within 3 months if not used. Federal employees can also bank overtime under the Canada Labour Code.

Banked overtime is a benefit for employees who prefer flexibility, but it is important to ensure the banking arrangement is documented in writing and complies with provincial requirements.

Worked example: overtime pay for a $30/hour Ontario worker

An hourly employee in Ontario earning $30/hour works 50 hours in a week. Ontario's overtime threshold is 44 hours per week with no daily overtime.

Regular hours: 44 (the first 44 hours at regular rate). Overtime hours: 50 - 44 = 6 hours at 1.5x the regular rate.

Regular pay: 44 x $30 = $1,320. Overtime pay: 6 x $30 x 1.5 = $270. Total gross pay for the week: $1,320 + $270 = $1,590.

If this employee works the same schedule every week, their estimated annual overtime pay is $270 x 52 = $14,040, and their annual gross pay is $1,590 x 52 = $82,680.

If the same employee worked in Quebec (40-hour threshold), they would earn overtime on 10 hours instead of 6: 10 x $30 x 1.5 = $450 per week, or $23,400 per year in overtime pay.