Banked Overtime Calculator
Updated November 2026 · Free · No sign-up
Calculate banked overtime — Canada’s paid-time-off-instead-of-OT: banked at 1.5 hours per overtime hour (the premium survives the conversion), under written agreements with use-by and payout rules per province.
Quick answer: Canadian OT banks at 1.5x — an hour of overtime banks 1.5 hours of paid time off (Ontario, federal, BC...; Alberta historically allowed 1:1 under agreements — verify current). Written agreement required; unused banks pay out in cash at the OT rate within provincial deadlines (Ontario: within 3 months / 12 by agreement).
How Banking Works
Instead of 1.5× pay now, you take 1.5× TIME later — the premium must survive the conversion in most jurisdictions (Ontario ESA, the federal Code, BC’s ESA all say 1.5 banked hours per OT hour). The machinery:
| Agreement | Written, individual (or union), BEFORE the hours — imposed banking is just unpaid OT |
| Use-by | Ontario: take the time within 3 months (12 by agreement); BC: bank operates until you ask it paid out; federal: 3 months default |
| Payout | Unused time pays CASH at the OT-equivalent rate — always on termination, and on request where the province provides (BC: any time) |
| Scheduling | Mutually agreed dates — employer vetoes can’t run the clock past the deadline without triggering payout |
Worked Example
10 OT hours at $30: cash now = $450; banked = 15 hours off (2 full days of 7.5) — same value, paid at straight rate when taken. A 1:1 bank of the same hours = 10 hours ($300 of value) — a 33% haircut; that’s why most provinces mandate the 1.5 conversion.
Audit Your Bank
Check: the written agreement exists, the 1.5 multiplier applied, the use-by clock, and termination payout at the right rate. Quiet bank expiry is unpaid-wages territory — employment-standards complaints recover it. The UK’s contract-law cousin: TOIL.
Frequently Asked Questions
At what rate does overtime bank?
1.5 hours of paid time per overtime hour in Ontario, BC, and federally — the premium converts to time; 1:1 banking is a underpayment where 1.5 is mandated.
Is a written agreement required?
Yes — banking replaces statutory OT pay only with a written (electronic counts) agreement made before or at the time; otherwise cash is owed.
What if I don’t use the banked time?
It pays out in cash at the equivalent OT value — within the provincial deadline (Ontario 3/12 months), on request where allowed, and always at termination.
Can my employer force banking?
No — it’s an agreement; refusing banking leaves the default: 1.5x pay on the next cheque.
Does banked time earn vacation pay?
The underlying OT wages are vacationable earnings in most provinces — payouts should carry vacation pay; audit the stub.
✓ Formula verified • Last updated: November 3, 2026