Province moves to cap executive pay and freeze pay for public sector jobs

Monday, September 24, 2012   by: Kate AdamsMinistry of Finance
News Release


Ontario is proposing to cap compensation for its executives and put in place a two-year pay freeze for managers who are eligible for performance pay. Managers across the Ontario Public Service (OPS) would see a three-year freeze.

These measures are being introduced because the government believes everyone has to do their share to help eliminate the deficit. Ontario has already asked some of its partners, like teachers and doctors, to take a two-year pay freeze.

Under the plan, executive pay would be permanently capped at no more than double the Premier’s salary — $418,000 per year. Public sector managers would not earn any more money for the next two years than they did last year. The amounts shown on T4 slips would not be able to increase, except under special circumstances such as a mother returning from maternity leave. The freeze would also decrease future pension expenses.
The McGuinty government is taking strong action to achieve its fiscal targets by reducing costs while protecting front-line services. This announcement builds on the restraint initiatives that the government has implemented since 2008.

“The McGuinty government respects the hard work of our public sector employees. These measures are necessary to help us meet our fiscal targets and we are asking everyone to do their share. More than half of government costs go to wages and benefits — this pay freeze would help us protect public services and jobs.”
— Dwight Duncan, Minister of Finance

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