Ontario faces the threat of economic upheaval and potential job losses in the tens of thousands thanks to the tariff policies by U.S. President Donald Trump. Under that dark cloud, Ontario legislators did what any politician would under those circumstances – gave themselves a 35 per cent pay raise and an improved pension plan.
In the span of 13 minutes, MPPs at Queen’s Park introduced and passed legislation which overhauled their pay and pensions. Pay had been frozen at 2009 levels as MPP pay was tied to the government’s ability to balance the budget. If the government was in deficit, MPPs did not receive a pay increase. Since 2009, successive governments have tabled plans to balance the budget two, three, or four years from now – an ever-moving goalpost of fiscal prudence.
The pay reforms, which received all-party approval in the legislature, increases MPPs’ base salary from $116,500 per year to $157,350, a $41,850 increase. Under the legislation, MPPs will earn 75 per cent the base salary of their federal counterparts. The earnings of parliamentary assistants, cabinet ministers, and the Premier will increase too. For Premier Doug Ford, his salary will increase by about $73,000 to $282,000 per year. In addition to pay increases, MPPs will again receive a defined benefit pension plan, rather than the defined contribution pension plan that had been in place for 30 years.
Politicians of all party colours justified the wage and pension improvements, stating that improved compensation will attract new and better candidates in future elections. Many also said the 16 year wage cap was inappropriate and did not keep up with the times. The Ford government was quick to highlight that MPPs will still earn less than municipal councillors in Toronto and Mississauga.
MPPs have forgotten the reason why pay was frozen for 16 years – budget deficits. The spirit of the law, which was one of the first acts of then-Premier Mike Harris, was to tie performance to compensation, and that MPPs were not elected to be in office forever or to get rich. Pension reform, and tying wages to balancing the budget, was entirely appropriate at the time, and remains so. Remember that in 1995, Ontario was in financial crisis. That said, provincial deficits then were lower than they have been under Doug Ford. Since his election in 2018, Doug Ford has had a plan to balance the budget. It was first to be balanced in 2022; then it was discovered Ontario was in a bigger mess financially. The COVID-19 pandemic moved that goal further back, and now Trump tariffs threatens further fiscal delay.
It is true that MPP compensation is a deterrent for some potential candidates to run for office. However, $116,500 a year is still a large sum of money. Perhaps not paying what is seen as “fair” is appropriate. Do we need politicians who are only in the job for the money?
There is no good time to vote yourself a raise, but Ontario MPPs picked the worst time to do so. It is difficult for the government to deny its employees fair compensation and wages, when it just upped its own pay by 35 per cent.
As so many Ontarians are struggling with stagnant wages, and fiscal uncertainty to their finances, MPPs collectively have failed the province by voting themselves a grotesque and inappropriate wage increase.
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