How to calculate CCQ vacation pay in 2026: a guide for employers

In Quebec’s construction industry, vacation pay isn’t just one formality among many. It’s an obligation governed by collective agreements and administered by the Commission de la construction du Quebec (CCQ). A calculation or reporting error can lead to corrections, administrative delays and, in some cases, amounts flagged as “uncollected” on your workers’ records, which can trigger wage complaints.

The good news: the mechanism is straightforward, provided you start from reliable hours data. This guide explains how CCQ vacation pay works in 2026, how to calculate it, how it ties into your monthly report, and where the most common pitfalls lie.

Important notice: this article is informational and does not replace legal advice or professional guidance. The rules can vary by sector, trade and applicable collective agreement. Always confirm your situation with the CCQ, your payroll service, or a qualified professional.

What is CCQ vacation pay?

In the construction sector governed by Bill R-20, workers don’t receive their vacation pay directly from their employer, unlike other sectors covered by the general labour standards. It’s the CCQ that administers these amounts.

In practice, each month the employer remits to the CCQ a percentage of the wages earned by its workers. The CCQ places these amounts in a fund, then pays them out to workers twice a year, before the summer and winter holidays. According to the CCQ, what’s commonly called “vacation pay” actually combines three distinct indemnities: mandatory annual leave, statutory holidays, and sick leave.

This distinction matters for employers: you aren’t calculating a single “vacation” percentage, but rather a set of indemnities that add up to an overall rate.

What is the CCQ vacation pay rate in 2026?

According to the CCQ, leave indemnities represent 13% of the gross wages earned by a worker during each week of work. This 13% breaks down as follows:

• 6% for mandatory annual leave;
• 5.5% for statutory holidays;
• 1.5% for sick leave.

It’s the employer who remits these amounts to the CCQ each month, in accordance with the collective agreements. These rates are the ones published by the CCQ on its official vacation pay page.

One useful clarification: when we speak strictly of the “vacation indemnity” (annual leave), we mean the 6%. The 13% corresponds to all leave indemnities combined. Depending on the context of your calculation, make sure you’re clear on which rate you’re referring to. If you’re unsure which rate applies to your trade or sector, confirm with the CCQ.

How do you calculate CCQ vacation pay?

The basic formula is simple: Eligible earnings × applicable rate = indemnity
For all leave indemnities combined: Weekly gross wages × 13% = amount to remit to the CCQ
If you isolate the annual leave indemnity alone: Gross wages × 6% = annual leave indemnity
Simplified example (fictional amounts): for weekly gross wages of $2,000, the employer remits $2,000 × 13% = $260 in leave indemnities to the CCQ for the week, of which $120 (6%) goes toward annual leave, $110 (5.5%) toward statutory holidays, and $30 (1.5%) toward sick leave.
This is a deliberately simplified example. Certain pay components may need to be included in or excluded from the calculation under CCQ rules; confirm the exact makeup of eligible earnings with the CCQ or your payroll service.

Sample calculation for a construction employer

Let’s take a concrete case with fictional figures to illustrate the logic from start to finish.

• Worker: a journeyman
• Hours worked in the week: 40 hours
• Hourly rate (fictional): $45/hr
• Gross weekly earnings: 40 × $45 = $1,800

Calculation of leave indemnities for the week:

• Annual leave (6%): $1,800 × 6% = $108
• Statutory holidays (5.5%): $1,800 × 5.5% = $99
• Sick leave (1.5%): $1,800 × 1.5% = $27
• Total (13%): $1,800 × 13% = $234

This $234 is what the employer remits to the CCQ for the week, on top of the wages paid to the worker. The hourly rate used here is fictional: actual rates vary by trade, status (apprentice or journeyman), sector, and the wage schedule set out in the collective agreement. Consult the 2025–2029 collective agreements for the rates that apply to your situation.

How does this connect to the CCQ monthly report?

This is where everything comes down to compliance. Leave indemnities aren’t remitted “separately”: they flow directly from the hours and wages you report to the CCQ in your monthly report.

If the hours reported are inaccurate, the indemnity amounts will be too. An hour missed means an under-stated indemnity. A wage entered incorrectly means a discrepancy that may surface later on the worker’s statement, sometimes in the “uncollected” column. Time tracking, payroll, and the monthly report therefore form a chain: the reliability of the last link depends on the quality of the first.

To fill out this monthly filing correctly, see our guide: How to Fill Out the CCQ Monthly Report Correctly.

Here are the mistakes that come up most often among construction employers:

• Using approximate hours instead of real, validated hours.
• Forgetting job sites or travel when they’re paid and eligible.
• Failing to properly distinguish regular hours from overtime, which skews earnings.
• Not confirming the rules specific to the applicable sector or collective agreement.
• Misidentifying the sector of the hours worked.
• Relying on incomplete paper timesheets, or ones filled out from memory at the end of the week.
• Correcting data too late, after payroll has been processed or the monthly report has been sent.
• Failing to keep reliable proof of hours worked, which complicates any verification.

Most of these mistakes share a common cause: imprecise time data at the outset.

Why time tracking is essential to calculating CCQ vacation pay correctly

An indemnity calculation is only as good as the hours it’s based on. To be reliable, your time data should capture:

• the actual start and end times;
• breaks during the day (breaks and lunch);
• the assigned job site;
• the type of job site (residential, commercial, etc.);
• the worker involved;
• regular hours and overtime, kept separate;
• validation by the manager or foreman as needed.

The more precise and traceable this data is, the more accurate your indemnities and filings will be, and the lower your risk of disputes.

Related reading: Why real-time time management has become essential for mobile teams

How a mobile time-tracking app can help employers

A mobile time-tracking tool doesn’t replace your payroll service or the CCQ’s rules, but it makes the raw material of the calculation, your hours, more reliable. In practice, this kind of app lets you:

• centralize hours worked in a single place;
• reduce manual entry errors;
• track hours by job site;
• make it easier for supervisors to validate timesheets;
• better prepare payroll data;
• support filings tied to the monthly report;
• cut down on omissions, last-minute corrections, and disputes.

For construction employers, several solutions are designed specifically for this context:

• construction app
• work-hours calculation app
• mobile time-tracking app
• construction time-management software

What employers should check in 2026

A short checklist before the vacation periods:

• Verify the CCQ rules that apply to your sector and trades.
• Confirm the applicable rate and breakdown (13% overall; 6% / 5.5% / 1.5%).
• Make sure hours are properly tracked and validated.
• Validate the data before payroll is processed and the monthly report is sent.
• Keep a clear, traceable record of hours.
• Train foremen and managers on time validation.
• Review your internal processes before each vacation period.

For reference, in 2026 the indemnities are paid to workers by direct deposit on June 19 (amounts credited from July to December 2025), according to the calendar published by the CCQ.

In closing

CCQ vacation pay is calculated with care, but there’s no mystery to it: an overall rate of 13%, broken down into three indemnities, applied to eligible earnings. The real challenge isn’t the formula, it’s the quality of the hours reported. Always verify the applicable rules against official sources, and have special cases validated by your payroll service or the CCQ.

For construction employers, reliable hours worked are the first step toward compliant payroll. A mobile time-tracking app like Mobile-Punch helps you better track hours, centralize job-site data, and simplify payroll preparation.