Overview
The Public Sector Employers Act (PSEA) was amended in December 2023. The amendments authorize the President of Treasury Board and Minister of Finance to issue directives regarding compensation for public sector employers.
Directives have been issued to establish the Non-Executive Compensation Framework and the Executive Compensation Framework. The frameworks are intended to balance government’s fiscal oversight role with public sector employers’ ability to manage their operations, while remaining responsive to market and economic conditions.
Ministerial orders
On July 28, 2025, the Non-Union Compensation Plan Order, Ministerial Order 31/2025, was issued for non-executive compensation.
On August 13, 2026, the Executives Compensation Plan Order, Ministerial Order 24/2026, was issued for executive compensation.
Under these orders, public sector employers are required to develop and submit compensation plans that outline how they are adhering to the prescribed limits and conditions. An employer’s compensation plan governs how total compensation is provided by the employer to their non-union employees (executive and non-executive). Upon government approval, the compensation plan is a legally binding compensation standard that cannot be altered or amended without the minister’s approval.
Until a public sector employer has an approved compensation plan, the employer will remain subject to limits and conditions set out in the following transition directives:
The Provincial Bargaining and Compensation Office (PBCO) administers government compensation policies. For assistance, email [email protected].
Non-executive compensation
The framework for non-executive compensation is established by the Non-Union Compensation Plan Order, Ministerial Order 31/2025 issued under the PSEA:
Non-Union Compensation Plan Order
This order came into effect July 28, 2025, for employers as defined under the PSEA and prescribed in Appendix A, of the order.
Until a Non-Union, Non-Executive Compensation Plan is approved, the employer will remain subject to Ministerial Order 49/2023 and Ministerial Order 50/2023.
Executive compensation
The framework for executive compensation is established by the Executives Compensation Plan Order, Ministerial Order 24/2026, issued under the PSEA.
Executives Compensation Plan Order
This order came into effect August 13, 2026, for employers as defined under the PSEA and prescribed in Appendix A of the order.
Until an Executive Compensation Plan is approved, the employer will remain subject to Ministerial Order 49/2023 and Ministerial Order 50/2023.
Employers should develop and submit an executive compensation plan to government for approval by December 1, 2026. If you have questions, contact [email protected].
Annual directive
As part of government’s commitment to ensuring the compensation framework is responsive to changes in the market and other economic conditions, the President of Treasury Board and Minister of Finance will continue to issue annual directives to address permitted range and in-range increases.
The 2026-27 annual directive on range and in-range increases is detailed in Ministerial Order 11/2026.
RABCCA transition directive
Public sector employers are required to adhere to the compensation regulations and/or processes under the Reform of Agencies, Boards and Commissions Compensation Act (RABCCA) until a compensation plan is approved.
Reform of Agencies, Boards and Commissions Compensation Regulation (RABCCA Regulation)
Under Ministerial Order 49/2023, until a public agency has an approved compensation plan, it will remain subject to limits and conditions set out in:
Reform of Agencies, Boards and Commissions (Post-secondary Institutions – PSIs) Compensation Regulation
Under Ministerial Order 50/2023, until a post-secondary institution has an approved compensation plan, it will remain subject to limits and conditions set out in:
Exemptions
The exemptions issued under RABCCA and the transition directives shall remain in effect until such time as their respective organizations have an approved compensation plan for all the respective incumbents covered by the exemption, at which point, the exemption will be rescinded.
Ministerial Orders