Add Comment Question: HI I started a small business 3 months ago, and my employee has passed the probation period. I was wondering how do I calculate how much vacation pay I need to pay him. Online is says four or six per cent of the total wages earned in each vacation year as vacation pay (depending upon the employee's period of employment upon the completion of the vacation entitlement year) or I don't know what this means Answer: At a minimum you must pay an additional 4% of the employee's pay on weekly or bi-weekly basis, depending on your payroll system, as vacation pay. You can either pay it out to the employee each pay cheque or bank it and pay them from that account when they take vacation. Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.