Employers typically pay their salaried workers the same yearly amount, whether the calendar year has 365 or 366 days, unless the contract states otherwise. As a result, the average salaried worker loses out each leap year, while employers save money. (Photo: Mimadeo, Illustration: Philippe de Montigny/CBC)
Rohith Krishnan expressed disappointment upon discovering that he wouldn't be compensated for the additional workday during leap years. Typically, employers maintain the same yearly salary for their salaried employees, regardless of whether the calendar year comprises 365 or 366 days, unless otherwise specified in the contract. Consequently, the average salaried worker stands to lose potentially hundreds of dollars, while employers collectively save billions.
Krishnan, a senior tax associate based in Toronto, highlighted that expenses persist on February 29, including meals, gas, and transit fares, emphasizing the need for compensation. Similarly, William Georgopoulos, speaking from Toronto's financial district, voiced concerns about the financial impact, particularly amid rising costs.
However, not all salaried workers share these concerns. Many appreciate the benefits, such as massage therapy and dental care, along with schedule flexibility, that come with salaried positions. Sara Loriot, an executive at an investment management firm, characterized the arrangement as a balance between expectations and compensation.
Ian Reed, an accountant from Kitchener, Ontario, minimized the impact of the additional workday, noting its negligible effect on his bottom line.
The issue raises questions about 'wage theft' for many, as the extra day of work amounts to hundreds of dollars for the average salaried worker. With approximately 6.5 million salaried employees in Canada, employers could save about $2 billion collectively. Ella Bedard, a lawyer and organizer with the Workers' Action Centre, described the leap day issue as part of a broader problem of workers not receiving their full entitlements.
Annie Boilard, a human resources consultant in Montreal, viewed occasional extra hours as part of the job, typically factored into compensation agreements.
The impact of leap day is different for hourly wage workers, who receive compensation for hours worked. However, for salaried employees, distinctions exist between biweekly and bimonthly pay schedules. Those paid biweekly may experience discrepancies due to the additional workday falling on a weekday this year.
Currently, there is no legal requirement for extra compensation for salaried workers on leap day. While some contracts may include provisions for compensation, such arrangements are uncommon. The Public Service Alliance of Canada stands as one of the few organizations advocating for leap year compensation, with members' salaries distributed evenly over a constant period to address calendar year discrepancies.
