HR, payroll & employment

Overtime Pay in Canada (2026): Thresholds by Province, Averaging, Banked Time and Exemptions

Overtime pay in Canada for 2026: thresholds by province, time and a half, B.C. double time, averaging, banked time, exemptions and C$ examples.

Photo of Sumeet YadavEdited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources
Updated October 2026 Verified against official sources 12 October 2026 15 min read
Overtime pay in Canada — MSMETOOLS guide cover
Contents (9)
  1. 1. Who sets the overtime rules
  2. 2. Overtime thresholds by province and territory in 2026
  3. 3. Province-by-province rules that trip employers up
  4. 4. How to calculate overtime pay
  5. 5. Averaging agreements and flexible schedules
  6. 6. Banking overtime as time off
  7. 7. Who is exempt from overtime
  8. 8. Common overtime mistakes
  9. 9. What to do next

Overtime is where Canadian payroll gets regional. Ontario pays after 44 hours a week, Quebec after 40, B.C. after 8 hours in a day, Alberta after 8 a day or 44 a week, and Nova Scotia only after 48. Some provinces pay overtime on the employee's regular rate and others only on the minimum wage. This guide is for small business owners, managers and employees who need the right answer in 2026: the thresholds in each jurisdiction, how to calculate overtime for hourly, salaried and commission staff, how averaging agreements and banked time work, who is exempt, and worked examples in Canadian dollars.

Quick answer

Overtime in Canada is usually paid at time and a half (1.5 times the regular rate) once an employee passes their province's threshold: 44 hours a week in Ontario, 40 hours a week in Quebec, 8 hours a day or 40 hours a week in B.C. (double time over 12 hours in a day), 8 hours a day or 44 hours a week, whichever is greater in Alberta, and 8 hours a day or 40 hours a week for federally regulated employers. Salaried staff are covered unless they're in an exempt group such as managers.

  • Nova Scotia and P.E.I. pay overtime only after 48 hours a week

  • Averaging agreements let hours be averaged over 2 to 4 weeks in Ontario

  • Banked time is 1.5 hours off per overtime hour in most places; Alberta banks at 1:1

  • Managers and supervisors are exempt almost everywhere

  • Employees can't waive overtime by agreement

Who sets the overtime rules

Like minimum wage and vacation pay, overtime is set by the jurisdiction that regulates the employer. Most businesses follow their province or territory's employment standards law. Federally regulated private-sector employers — banks, airlines, interprovincial trucking and bus companies, railways, telecoms and broadcasters — follow Part III of the Canada Labour Code, wherever their staff work. If you have employees in more than one province, each one is governed by the rules where they work.

These rules are minimums. An employment contract or collective agreement can pay overtime sooner, at a higher rate, or both — and then the better term applies. What a contract can't do is reduce overtime below the statutory floor. Ontario's guide is explicit that employees can't give up their overtime rights in an agreement; averaging and time off in lieu are the only permitted alternatives.

Overtime thresholds by province and territory in 2026

JurisdictionDaily thresholdWeekly thresholdMinimum overtime rate
Federal (Canada Labour Code)8 hours40 hours1.5 × regular rate
OntarioNone44 hours a week1.5 × regular rate
QuebecNone40 hours a week1.5 × regular rate
British Columbia8 hours (2× after 12)40 hours1.5 × regular; 2× over 12 hours in a day
Alberta8 hours44 hours (whichever gives more overtime)1.5 × regular rate
Saskatchewan8 hours (10 on a four-day schedule)40 hours (32 in a public-holiday week)1.5 × regular rate
Manitoba8 hours40 hours1.5 × regular rate
Nova ScotiaNone48 hours a week1.5 × regular rate (1.5 × minimum wage for some groups)
New Brunswick (reported)None44 hours a week1.5 × minimum wage
Newfoundland and Labrador (reported)None40 hours a week1.5 × minimum wage
Prince Edward Island (reported)None48 hours a week1.5 × regular rate
Northwest Territories and Nunavut (reported)8 hours40 hours1.5 × regular rate

Rows marked "reported" come from the Canadian Federation of Independent Business's 2026 summary, because those governments' pages blocked our checks; confirm them on the official links before relying on them. Yukon isn't shown because we couldn't confirm its rule — check Yukon's employment standards office.

The biggest difference is daily versus weekly. In Ontario, Quebec and the Atlantic provinces, a 12-hour day doesn't earn overtime as long as the weekly total stays under the threshold. In B.C., Alberta, Saskatchewan, Manitoba and the federal sector, it does. The second big difference is the rate: New Brunswick and Newfoundland and Labrador require only 1.5 times the provincial minimum wage, so a well-paid employee there can legally receive less than their own regular rate for overtime hours, unless their contract says otherwise.

An antique wooden time clock with a round dial and a card slot, displayed against window blinds
Overtime starts from accurate hours records — employers must keep daily hours for years, whether from a punch clock or an app.· Image: Pargon (Flickr) (CC BY 2.0)

Province-by-province rules that trip employers up

Ontario

Most Ontario employees — full-time, part-time, students, casual staff and temporary help agency workers — earn overtime after 44 hours a week. It's calculated week by week, not day by day, unless a contract says otherwise. If an employee has two hourly rates in the same week, each overtime hour is paid at 1.5 times the rate for the work done in that hour. Employers can't cut the regular rate in an overtime week to offset the premium.

When an employee does both covered and exempt work, they qualify for overtime on all hours over 44 if at least half their hours that week are in covered work. Managers and supervisors don't qualify if their work is managerial or supervisory, even if they occasionally do other tasks. Many other jobs are exempt or have higher thresholds; Ontario's special rules tool lists them by industry.

British Columbia

B.C. combines a daily and a weekly test. Hours over 8 in a day, up to 12, are paid at time and a half — even in a week under 40 hours — and hours over 12 in a day are paid at double time. Hours over 40 in a week (Sunday to Saturday) are paid at time and a half, counting only the first 8 hours worked each day, so the same hour is never paid twice. Employees are also entitled to 32 consecutive hours free from work each week; work in that period is paid at time and a half.

Alberta

Alberta's rule is overtime after 8 hours a day or 44 hours a week, whichever is greater — you calculate both and pay the larger number of overtime hours. Several industries have their own thresholds: for example, 10 hours a day or 50 a week in trucking, 10 a day or 60 a week for ambulance attendants and taxi drivers, and 10 a day or 44 a week in highway and railway construction.

Work out a regular and overtime rateFree, no login — convert a salary to an hourly rate, then multiply by 1.5 for the overtime rate.

Quebec

Quebec's normal workweek is 40 hours a week, and overtime is calculated weekly at time and a half. Premiums such as night-shift premiums are left out of the rate. Employees can refuse work more than two hours past their normal daily hours, more than 12 hours in any 24 for those without set daily hours, or more than 50 hours in a week. Since amendments in 2018, an employer and employee can agree in writing to stagger hours over up to four weeks without government authorization, provided no week exceeds the normal workweek by more than 10 hours.

Saskatchewan and Manitoba

Both use 8 hours a day and 40 a week. Saskatchewan lets employers schedule four 10-hour days, with daily overtime then starting after 10 hours, and drops the weekly threshold to 32 hours in a week with a public holiday. Modified work arrangements can average hours over one to four weeks. Manitoba counts general holidays as hours worked for overtime but not vacation or paid sick time, and pays overtime only for work the employer requested, allowed or acknowledged.

Nova Scotia

Nova Scotia's general rule is time and a half of the regular wage after 48 hours a week, measured over a consistent seven-day week. Wage orders change that for some groups: managers, supervisors, IT professionals, some professionals, oil and gas employees and others get 1.5 times the minimum wage after 48 hours, and construction and property-maintenance employees get 1.5 times their regular wage only after 110 hours over two weeks.

Federally regulated employers

The Canada Labour Code sets standard hours of 8 hours a day or 40 hours a week, reduced by 8 hours for each general holiday in the week. Overtime is paid at 1.5 times the regular rate, and maximum hours are generally 48 hours a week. Federal employees can refuse overtime to deal with certain family responsibilities, after taking reasonable steps to make other arrangements, unless it's needed to deal with an emergency. Trucking has its own regime: highway drivers get overtime after 60 hours a week, and city drivers after 9 hours a day or 45 a week.

Road workers in hard hats and high-visibility vests laying rebar on a bridge deck at night under floodlights
Construction and road-building crews often work long shifts — several provinces set special overtime thresholds for them.· Image: MassDOT (Flickr) (Public Domain Mark 1.0)

How to calculate overtime pay

Calculating overtime for a pay period

  1. 1

    Find the right rule

    Province where the employee works (or federal), any industry special rule, and any averaging agreement or modified work arrangement in force.

  2. 2

    Total the hours

    Count all hours worked each day and week. In daily-overtime provinces, work out the daily and weekly overtime separately.

  3. 3

    Work out the regular rate

    Hourly rate; or weekly salary ÷ the hours it covers; or commission and piece-rate earnings ÷ hours (Ontario divides by 44).

  4. 4

    Apply 1.5× (or 2×)

    Multiply overtime hours by the overtime rate. In N.B. and N.L., the minimum is 1.5× the minimum wage.

  5. 5

    Pay it or bank it

    Pay on the regular pay day for the period, or credit time off under a written agreement, within the province's deadline.

Worked examples in C$

1. Ontario hourly. Ravi earns C$25 an hour and works 53 hours in a week. He gets 44 × C$25 = C$1,100 regular pay plus 9 overtime hours at C$37.50 = C$337.50, for C$1,437.50.

2. Ontario fixed salary. Sharon is paid C$950 a week and works 50 hours. Her regular rate is C$950 ÷ 44 = C$21.59, so her overtime rate is C$32.39. Six overtime hours add C$194.34, for C$1,144.34. If her salary covered only 40 hours, as Ontario's fluctuating-hours example shows, the regular rate would be the salary divided by 40 instead, and the four hours between 40 and 44 would be paid at the straight rate.

3. B.C. daily overtime. A Kelowna cook earning C$24 an hour works 8, 10, 6 and 13 hours in a week — 37 hours, under the weekly threshold. Using B.C.'s own breakdown, that's 30 regular hours (C$720), six hours at time and a half (6 × C$36 = C$216) and one hour at double time (C$48), for C$984. In Ontario, the same week would be paid at straight time: C$888.

4. Alberta greater-of rule. A Red Deer technician on C$22 an hour works 9, 8, 10, 8 and 6 hours — 41 hours. Weekly overtime is zero, but daily overtime is three hours, so three hours are overtime: 38 × C$22 = C$836 plus 3 × C$33 = C$99, for C$935. Under a written banking agreement, he could instead get three hours of paid time off at 1:1.

5. Quebec. A Sherbrooke machinist on C$20 an hour works 45 hours: 40 × C$20 = C$800 plus 5 × C$30 = C$150, for C$950.

6. Nova Scotia. A Halifax warehouse worker on C$20 an hour works 50 hours. Only the two hours over 48 are overtime: 48 × C$20 = C$960 plus 2 × C$30 = C$60, for C$1,020.

7. Manitoba salary. Manitoba's guide shows a C$800 weekly salary for a 40-hour week giving a regular rate of C$20 and an overtime rate of C$30.

Overtime pay is regular employment income for payroll deductions: CPP, EI and income tax are calculated on the gross pay including overtime. See our payroll deductions guide for the 2026 rates.

Averaging agreements and flexible schedules

Averaging lets an employer schedule long weeks and short weeks without paying overtime, as long as the average stays under the threshold.

Ontario allows averaging over two to four consecutive weeks by written or electronic agreement. Overtime is owed only when the average passes 44 hours — after 176 hours over four weeks. Averaging periods can't overlap or leave gaps. For non-union employees the agreement must have an expiry date no more than two years after it starts, and neither side can cancel it early without the other's agreement. Ontario's example: Myron works 54 hours and then 36 hours under a two-week agreement. His average is 45, so he gets one overtime hour per week — two hours in total, or C$75 at his C$37.50 overtime rate. Without the agreement, he'd have been owed 10 overtime hours in week one.

B.C. averaging agreements run for one to four weeks, must be in writing and signed before they start, and must average no more than 40 hours a week. Daily double time after 12 hours still applies. Saskatchewan's modified work arrangements average over one to four weeks. Quebec's staggered-hours agreements cover up to four weeks. Manitoba requires an averaging permit from Employment Standards or an individual flextime agreement. Under the Canada Labour Code, modified schedules averaging over two or more weeks need written agreement from the union, or from the employee or 70% of the affected group, and 30 days' posted notice.

Banking overtime as time off

Time off instead of overtime pay

Ontario

Credit per overtime hour

1.5 hours

Must be used within

3 months (12 with agreement)

If employment ends

Paid within 7 days or next pay day

Federal

Credit per overtime hour

1.5 hours

Must be used within

3 months (up to 12 non-union, by agreement)

If employment ends

Paid within 30 days

Manitoba

Credit per overtime hour

1.5 hours

Must be used within

3 months

If employment ends

Unused time paid out

Alberta

Credit per overtime hour

1 hour off for each overtime hour

Must be used within

6 months

If employment ends

Paid at 1.5 × regular rate

British Columbia

Credit per overtime hour

Time bank by employee's written request

Must be used within

Employer can close the bank on 1 month's notice

If employment ends

Paid out

Quebec

Credit per overtime hour

1.5 hours, only if the employee asks

Must be used within

12 months

If employment ends

Otherwise paid as overtime

Banking always needs a written agreement — and in B.C. a written request from the employee. Track the bank on every pay stub, and pay out any balance when the deadline passes or employment ends. Alberta is the outlier: banked overtime is credited hour for hour, but if the job ends with time still in the bank, it's paid out at time and a half.

Who is exempt from overtime

Every jurisdiction excludes some workers, but the lists differ:

  • Managers and supervisors are exempt almost everywhere, provided their work is genuinely managerial. A job title alone isn't enough.
  • Professionals such as lawyers, accountants, engineers, architects and doctors are exempt federally and in Alberta, and many provinces exclude IT professionals or set special rules for them.
  • Salespeople: Alberta exempts licensed real estate and securities salespeople and certain direct sellers; B.C. has special rules for commission salespeople.
  • Farm workers, domestic workers and some seasonal industries are exempt or have separate thresholds in several provinces.
  • High earners who control their own hours: Manitoba exempts employees who substantially control their hours and earn at least twice the provincial average industrial wage — both conditions are needed.

If you're unsure, assume overtime applies. Misclassifying a supervisor or salaried employee as exempt is one of the most common sources of back-pay claims, and an employment standards officer can order several months of unpaid overtime to be paid at once.

Common overtime mistakes

Assuming salary means no overtime. Salaried employees are entitled to overtime unless they're in an exempt group. Work out the hours the salary covers and the regular rate.

Ignoring daily overtime when you expand. A business that moves from Ontario to Alberta or B.C. has to add daily overtime to its payroll setup.

Counting holiday premium hours twice. In Ontario, hours paid at public holiday premium pay are left out of the 44-hour count unless the employee took a substitute day. See our guide to statutory holidays in Ontario.

Unrecorded hours. Overtime is owed for work the employer allows or knows about, even if it wasn't formally approved. Federal employers must keep daily hours records for 36 months; most provinces have similar rules.

Leaving overtime out of vacation pay. In Ontario and Saskatchewan, overtime is part of the wages on which vacation pay is calculated; in Alberta and Manitoba it isn't.

What to do next

Check which overtime rule applies to each employee, make sure your payroll system calculates daily overtime where your province requires it, and put any averaging or banking agreements in writing before the schedule starts. If you pay close to the floor, compare with the current minimum wage — overtime at 1.5 times a minimum-wage rate rises every time the minimum does. Use our hourly rate calculator to price long shifts, and the salary slip generator to show regular and overtime hours on separate lines.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

It depends on the jurisdiction. Ontario and New Brunswick use 44 hours a week; Quebec uses 40 hours a week; B.C., Manitoba, Saskatchewan and federally regulated employers use 8 hours a day or 40 hours a week; Alberta uses 8 hours a day or 44 hours a week, whichever is greater; Nova Scotia and P.E.I. use 48 hours a week. The usual rate is time and a half.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

  1. 1.Your guide to the Employment Standards Act: Overtime pay — Government of Ontario · accessed 12 October 2026
  2. 2.Hours of work (federally regulated employers) — Employment and Social Development Canada · accessed 12 October 2026
  3. 3.Overtime pay — Government of British Columbia · accessed 12 October 2026
  4. 4.Overtime hours and overtime pay — Government of Alberta · accessed 12 October 2026
  5. 5.Overtime fact sheet — Manitoba Employment Standards · accessed 12 October 2026
  6. 6.Overtime in a day versus overtime in a week — Government of Saskatchewan · accessed 12 October 2026
  7. 7.Guide to the Nova Scotia Labour Standards Code (October 2026) — Government of Nova Scotia · accessed 12 October 2026
  8. 8.Overtime — Éducaloi · accessed 12 October 2026
  9. 9.Important amendments to An Act respecting labour standards (Quebec) — McCarthy Tétrault · accessed 12 October 2026
  10. 10.Minimum wage rates and overtime rules in Canada — Canadian Federation of Independent Business · accessed 12 October 2026

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