Modernizing compensation governance

The Public Sector Employers Amendment Act, 2023 (Bill 5) allows for a new, flexible governance model for public sector compensation.

Status: The Public Sector Employers Amendment Act, 2023 received royal assent December 7, 2023
Ministry responsible: Treasury Board and Finance


The Public Sector Employers Amendment Act, 2023, (formerly Bill 5) streamlines and harmonizes government’s direction for the compensation of non-union employees across Alberta’s public sector.

The act enables Alberta’s government to replace the current, outdated model for regulating non-union compensation with a new model that would alleviate challenges public sector employers have been facing for years – recruiting and retaining staff because the current regulations do not account for inflation or evolving labour market conditions.

Key changes

The Public Sector Employers Amendment Act, 2023 amends the Public Sector Employers Act to enable changes to the compensation governance structure for non-union employees at entities currently governed by the Reform of Agencies, Boards and Commissions Compensation Regulation, including:

  • Alberta Health Services and Covenant Health
  • post-secondary institutions, except independent academic institutions
  • some public agencies, including:
    • Alberta Gaming, Liquor and Cannabis Commission
    • Alberta Innovates
    • Alberta Pension Services Corporation
    • Special Areas Board
    • Travel Alberta
    • Workers’ Compensation Board

The act ensures that strong government oversight and fairness continues as entities would be required to provide compensation plans for approval.

Next steps

The Public Sector Employers Amendment Act, 2023 will come into effect upon proclamation.