The “time off tax” workers in Canada incur, an indicator ADP Canada reports annually measuring the additional hours worked before and after a week of vacation, reaches its lowest level recorded since 2017.

Three in ten (30%) workers report not working any extra hours before or after taking a one-week vacation. Those who did pay the time off tax clocked an average of 18 hours of extra work to prepare and return from their vacation. This represents 2 hours less than last year and shows a significant decrease from 2020, where workers in Canada reported 34 hours of extra work.

According to the survey, nearly a third (31%) of workers in Canada said they have already used all their allotted vacation time so far in 2023. While this is steady with last year’s results (29%), it still falls well below pre-pandemic figures (48%). At the same time, most workers in Canada (62%) reported using at least half to all their vacation time this year. Nearly a third (32%) said they took less than half, including 13 percent that didn’t take any – improvement from last year, where 17 percent indicated not taking any time off at all. 

The survey also revealed the external factors that may have impacted Canadians’ ability or willingness to travel, as an average of three in ten (29%) workers in Canada are considering postponing or cancelling upcoming travel plans due to the burden of the current cost of living. Despite the challenging market conditions this past year, employers are rewarding their workers as almost a quarter (24%) of workers in Canada said they are usually offered additional financial compensations (bonus) during the year. Regarding travel during the holiday season, like last year, most (65%) workers in Canada say they will not travel, representing a 4-percentage point decrease from last year.