Final Pay on a Canadian Pay Stub
Before you cash that last cheque, here is what your final Canadian pay statement should include.
Written and reviewed by Rocco Clayfield, Founder & DirectorLast reviewed
Short answer
When your employment ends in Canada, your final pay statement should include all wages earned up to your last day, any accrued and unpaid vacation pay, payment for any outstanding statutory holiday entitlements, and — where applicable — termination or severance pay. The timing of when you must receive your final pay is governed by provincial employment standards. Reviewing your final stub carefully before accepting it is an important step.
Your final pay statement is one of the most important documents you will receive from an employer. It should account for everything you are owed at the point your employment ends — including wages for time worked, any vacation pay that was accrued but not yet paid, outstanding statutory holiday entitlements, and, depending on your situation, termination pay or severance.
Errors in final pay are not uncommon. Some arise from payroll processing issues in the compressed timeline of an employee departure; others involve a misunderstanding of what is owed under employment standards. Being clear about what you expect and reviewing the stub carefully gives you the opportunity to raise any discrepancies before the employment relationship fully concludes.
The rules around timing, required components, and the treatment of outstanding entitlements in final pay vary by province. Understanding the basics applicable to your jurisdiction will help you assess whether your final statement is complete.
What this page helps you check
- Does the final stub include wages for all days and hours worked up to and including your last day of employment?
- Is accrued, unpaid vacation pay clearly shown and paid out in full?
- Are there any outstanding statutory holiday entitlements for holidays that occurred before your departure?
- If applicable, does the stub include termination pay or pay in lieu of notice — or is this being addressed through a separate agreement?
- Have any final expense reimbursements, benefits adjustments, or clawbacks been accounted for and, where applicable, documented?
- Does the total gross pay on the final stub match the sum of your calculations for each component owed?
- Are all deductions on the final stub — including any benefit premium recoveries or loan repayments — ones you were aware of and authorized?
Wages Earned Up to Your Last Day
Your final pay must include all regular wages earned from the start of the last pay period through your final day of employment. If your departure falls mid-period, the pay should be prorated accordingly. Verify that the hours or days shown align with your records.
If you were on a salary, confirm that the final payment reflects the correct number of working days in the final partial period, not a short-payment due to the payroll system simply running the regular cycle.
Vacation Pay on Departure
Any vacation pay that has accrued but not yet been paid must be included in your final pay. This is a legislated requirement in all provinces. If your employer has been banking vacation pay throughout your employment, the accrued balance must be released at termination.
Check the vacation pay balance shown on your most recent stubs before your departure, and compare it to the payout amount on your final statement. If there is a discrepancy, ask payroll for a reconciliation.
Termination Pay and Severance — Not Always on the Final Stub
Termination pay (pay in lieu of notice) and statutory severance pay, where they apply, are separate entitlements from wages and vacation pay. They may appear on the final pay stub, or they may be addressed through a separate payment or agreement — particularly in negotiated settlements or situations involving more complex entitlements.
Whether termination pay or severance appears on a stub or through another channel, the tax treatment and CRA reporting implications are important. These payments are typically taxable income in the year received, though special rules may apply in some circumstances — consult a tax professional if you are unsure.
Record of Employment
Your employer is required to issue a Record of Employment (ROE) after your employment ends. The ROE captures your insurable earnings, hours, and the reason for the separation — this document is important for EI eligibility. Confirm that the earnings figures on your ROE are consistent with the figures on your final pay statement.
If you believe your ROE contains errors, contact your employer first; if the issue is not resolved, Service Canada can assist.
Timeline for Receiving Final Pay
Provincial employment standards establish timelines within which final pay must be provided after employment ends. The specific deadline varies by province and sometimes by the reason for separation. If your final pay is delayed beyond the required timeline, your provincial employment standards office can advise on your options.
Province & territory note
Quebec works differently
Common red flags worth checking
These do not automatically mean there is an error. They are simply lines worth a closer look, or worth asking payroll to explain.
Vacation pay balance is zero or lower than expected
If your accrued vacation pay balance was visible on recent stubs and the final pay shows a much lower amount or nothing, ask for a reconciliation of the vacation pay account.
Final pay only covers up to the last regular pay period
If your departure was mid-period and the final stub only reflects pay through the end of the prior period, the wages for your remaining days may have been omitted.
Unexpected deductions on the final stub
Final stubs sometimes include benefit premium recoveries or other deductions. If any deductions appear that you did not authorize or were not informed about, ask payroll for an explanation before accepting the final payment.
No separate documentation for termination or severance pay
If you are owed termination or severance pay and it does not appear on your final stub or any other written statement, confirm in writing with your employer when and how this will be paid.
ROE figures inconsistent with final stub
A material difference between the insurable earnings or hours on your ROE and the figures on your final pay statement is worth querying, as it can affect your EI entitlement.
Final pay received late
If your final pay was not received within the timeline required by provincial employment standards, document the delay and contact the appropriate provincial office if it is not promptly resolved.
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What to ask payroll or HR
Calm, specific questions get clearer answers. You can copy any of these, or build a full message with the Payroll Message Generator.
- “Can you provide a detailed breakdown of the final pay calculation, including wages for the last partial period, vacation pay accrual, and any other components?”
- “What is the accrued vacation pay balance as of my last day, and how is it reflected in the final pay?”
- “Are there any deductions on the final stub, and can you confirm what each one relates to?”
- “When will the ROE be issued, and can you confirm that the insurable earnings on the ROE will match the final pay statement?”
- “If termination or severance pay is owed, when and how will it be paid, and will I receive a written statement for that payment?”
- “When can I expect the final pay to be deposited or issued?”
Frequently asked questions
When does my employer have to give me my final pay?
The timeline varies by province. Some require final pay by the next regular pay day; others have a specific number of days after the last day of work. Check your provincial employment standards or contact the employment standards office in your province for the applicable deadline.
Does my vacation pay get paid out when I resign?
Yes. Accrued, unpaid vacation pay must generally be paid out when employment ends, regardless of whether the employee resigned, was terminated, or left for any other reason. This is a standard requirement under most provincial employment standards legislation.
Is my final pay taxed the same way as regular pay?
Regular wages and vacation pay in a final pay are taxed the same way as any other employment income. Termination pay and severance, if included, may have different tax treatment depending on the circumstances — consult a tax professional if you receive these payments.
Can my employer withhold my final pay?
Generally, no — employers are required to pay wages earned by the required deadline under provincial employment standards, regardless of any disputes about other matters. If your employer is withholding final pay, your provincial employment standards office can advise on your options.
What if my employer owes me a bonus or commission payout that has not been resolved at the time of my departure?
Entitlement to outstanding bonuses or commissions after departure depends on the terms of the employment agreement and, in some cases, provincial employment standards. If the amount is in dispute, documenting your position and seeking advice from an employment lawyer may be appropriate.
Does my final pay affect my EI claim?
Yes. The amounts received in final pay — including vacation pay, termination pay, and severance — can affect both your EI claim start date and the amount of benefits payable, depending on how Service Canada treats these payments. Service Canada's resources or an advisor can explain how different payment types are treated.
Should I sign a release before receiving my final pay?
Some employers ask departing employees to sign a release of claims in exchange for severance or enhanced termination packages. Signing a release can limit your ability to pursue future claims. You are not required to sign immediately, and it is generally advisable to have a lawyer review any release before signing.
My final stub has a deduction for a benefit premium overpayment — is that allowed?
Some benefit plan premiums are paid in advance for coverage periods, and an employer may attempt to recover premiums for coverage that extends beyond the last day of employment. Whether this type of recovery is permitted and how it must be handled is governed by provincial employment standards and the terms of the benefit plan. Ask payroll for the specific basis and amount.
Official sources for this page
Every figure here is derived from these. Where a number matters to you, read it at the source — PayStub IQ Canada explains the rules, it does not set them.
- Your guide to the Employment Standards Act — Government of Ontario
- Payroll deductions and contributions — Canada Revenue Agency
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Helpful guidance, not advice
PayStub IQ Canada provides educational payroll explanations based on the information visible in your document. It does not provide legal, tax, accounting, payroll, CRA, Revenu Québec, or employment standards advice. For official decisions or corrections, contact your employer, payroll department, CRA, Revenu Québec, your provincial or territorial employment standards office, or a qualified professional.