Taxpayers Federation says most federal workers got raises despite weak performance
Data obtained by the Canadian Taxpayers Federation show that over three-quarters of federal employees received pay increases in 2025, while a sizable share of departments missed their performance targets.
The Canadian Taxpayers Federation released figures showing that 336,188 federal workers received salary increases in 2025, representing 78% of the public service. Pay hikes included regular revisions, classification progressions and retroactive adjustments, but excluded promotions or overtime. Only 580 non-executives and 16 executives experienced cuts, mainly due to demotions.
Bonuses were granted to 34% of non-executive staff and 88% of executives. Government performance data for 2024-25 reveal that roughly 30% of departmental results and 26% of program outcomes fell short of targets, with about 10% lacking data. Federation officials criticised the disparity between compensation and output, urging Prime Minister Mark Carney to trim the bureaucracy and lower the tax burden. They also cited a Fraser Institute study indicating a wage premium for government employees over private-sector peers.
Why it matters
Taxpayers fund federal salaries, so rising pay amid poor departmental performance raises concerns about fiscal responsibility.
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