Caryn works for an organization in Manitoba. Which of the following would not be used to calculate her vacation pay?

Caryn works for an organization in Manitoba. Which of the following would not be used to calculate her vacation pay?

• A. Moving allowance
• B. Salary
• C. Car allowance
• D. Travel expenses

Answer: (A)

Manitoba vacation pay is figured as a percentage of wages earned in the entitlement year. Wages are the compensation you receive for work performed, so regular pay and other remuneration that form part of your earnings are included. A moving allowance is a relocation benefit meant to help with moving costs, not compensation for the work done during the year, so it isn’t part of the wages base used to calculate vacation pay. In contrast, car allowances and travel allowances paid as part of the employee’s remuneration are considered part of compensation and are included in the vacation pay calculation. (Note: if travel reimbursements are strictly for actual expenses and properly substantiated, they aren’t wages, but allowances tied to work duties typically are.)

Manitoba vacation pay is figured as a percentage of wages earned in the entitlement year. Wages are the compensation you receive for work performed, so regular pay and other remuneration that form part of your earnings are included. A moving allowance is a relocation benefit meant to help with moving costs, not compensation for the work done during the year, so it isn’t part of the wages base used to calculate vacation pay. In contrast, car allowances and travel allowances paid as part of the employee’s remuneration are considered part of compensation and are included in the vacation pay calculation. (Note: if travel reimbursements are strictly for actual expenses and properly substantiated, they aren’t wages, but allowances tied to work duties typically are.)