Annual survey reveals workers not clocking as many extra hours to compensate for vacation time
The "time off tax” incurred by Canadian workers has reached its lowest level recorded since 2017, according to ADP Canada’s annual survey.
This tax refers to the additional hours worked before and after a week of vacation, and while workers in Canada still take fewer vacation days than before the pandemic, they do not clock as many extra hours as they used to before and after taking time off, the survey revealed.
Thirty per cent of workers reported not working any extra hours before or after taking a one-week vacation. Those who did work additional hours clocked an average of 18 hours of extra work to prepare and return from their vacation.
This represents two hours less than last year and shows a significant decrease from 2020 where workers in Canada reported working an additional 34 hours to compensate for vacation time, said ADP.
Using allotted vacation time
In addition, the survey revealed that nearly a third of Canadian workers said they have already used all their allotted vacation time so far in 2023. While this is steady with last year’s results of 29%, it still falls well below pre-pandemic figures of 48%.
At the same time, 62% of workers in Canada reported using at least half to all their vacation time this year. 32% said they took less than half, including 13% who didn’t take any, which was improvement from last year where 17% indicated not taking any time off at all, the survey said.
“The year-over-year uptick in more workers taking all their allotted vacation days, paired with the dip in time off tax, indicates that Canadians are regaining their work-life balance,” said Heather Haslam, vice president, marketing at ADP Canada.
“Taking personal time is essential not only for employees’ productivity and balancing work and life but also for maintaining peace of mind. As we shift into the new year, and with some workers in Canada forgoing their travel plans, employers need to ensure workers are still taking their well-deserved vacation time to disconnect and ensure mental well-being.”
The impacts of the cost of living
The survey also revealed which external factors may have impacted Canadians’ ability or willingness to travel, as an average of 29% of Canadian workers are considering postponing or cancelling upcoming travel plans due to the burden of the cost of living.
In comparison, last year’s ADP survey revealed that 56% of respondents said current inflation levels played a role in their holiday travel plans.
Regarding travel during the holiday season, 65% of workers in Canada say they will not travel, representing a four-percentage point decrease from last year.
