Key Takeaways
- More than 27,000 federal public servants were paid at least $150,000 in the last fiscal year.
- The number of federal public servants making over $250,000 a year has surged, with nearly 1,400 employees earning between $250,000 and $299,999.
- The government plans to lower program spending and administration costs by about $60 billion over the next five years.
- The government intends to have 10 per cent fewer federal employees by 2029, a loss of about 40,000 jobs from the public service peak of 368,000 two years ago.
- Critics argue that the high salaries of federal public servants are unsustainable and that the government needs to rein in the pay and perks of top bureaucrats.
Introduction to the Issue
The Canadian government has been facing criticism for the high salaries of its federal public servants. A recent document tabled in Parliament shows that more than 27,000 federal public servants were paid at least $150,000 in the last fiscal year. This number has been increasing over the years, with around 21,200 public servants paid at least $150,000 in 2023-24, compared to around 14,250 in 2022-23. The document, prepared by the Treasury Board of Canada Secretariat, provides a breakdown of the number of employees who earned between $150,000 and $199,999, $200,000 and $249,999, $250,000 and $299,999, and so on.
Breakdown of Salaries
The document shows that more than 20,000 employees received compensation of between $150,000 and $199,999 in 2024-25. Nearly 5,000 employees earned between $200,000 and $249,999, and almost 1,400 employees made between $250,000 and $299,999. The document also shows that 654 employees were paid between $300,000 and $399,999 last year, while 42 earned between $400,000 and $499,999, and six employees made $500,000 or more. These numbers have sparked criticism from opponents who argue that the high salaries of federal public servants are unsustainable and that the government needs to take action to reduce the cost of the bureaucracy.
Response from Critics
Franco Terrazzano, federal director of the Canadian Taxpayers Federation, has criticized the high salaries of federal public servants, saying that Prime Minister Mark Carney "must take air out of Ottawa’s ballooning bureaucracy to fix the federal finances." Terrazzano argues that the government needs to make itself more affordable for taxpayers and that this can be achieved by reining in the pay and perks of top bureaucrats. He also states that "taxpayers can’t afford to keep bankrolling a bloated government full of overpaid paper pushers." Richmond Hill South Conservative MP Vincent Ho, who submitted the order paper question, has also argued that the number of federal public servants making over $250,000 a year has surged and that "Canadians can’t afford the cost of Carney and this Liberal government."
Government’s Plan to Reduce Costs
The latest federal budget has outlined a plan to lower program spending and administration costs by about $60 billion over the next five years. The government intends to have 10 per cent fewer federal employees by 2029, a loss of about 40,000 jobs from the public service peak of 368,000 two years ago. The government also plans to reduce the number of executive positions by 1,000 over the next two years. These measures are intended to reduce the cost of the bureaucracy and make the government more affordable for taxpayers. However, critics argue that these measures do not go far enough and that the government needs to take more drastic action to reduce the high salaries of federal public servants.
Conclusion
The high salaries of federal public servants have become a contentious issue in Canada. While the government has outlined a plan to reduce costs, critics argue that more needs to be done to address the issue. The surge in the number of federal public servants making over $250,000 a year has raised concerns about the sustainability of the bureaucracy and the impact on taxpayers. As the government moves forward with its plan to reduce costs, it will be important to monitor the effectiveness of these measures and to consider further action to address the issue of high salaries among federal public servants. Ultimately, the goal should be to create a more efficient and effective government that is affordable for taxpayers and provides good value for the services it provides.