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Backgrounder: Employer offer and resulting increase in salary

Wage offer

The governments wage offer, tabled April 16, 2023, aligns to the recommendations of the third-party Public Interest Commission (PIC). For the PSAC members currently bargaining at the CRA and in the four Core Public Administration groups (TC, SV, EB, and PA), the average salary increase for each employee resulting from a 9% increase over three years would be approximately $6,250.

Table 1: Employer offer
Year 0
(2020)		 Year 1
(2021)		 Year 2table 1 note *
(2022)		 Year 2table 1 note *
(2022)		 Year 3
(2023)		 Year 4 +
(ongoing)

Table definitions

Table 1 Notes

Table 1 Note 1

Year 2 increases include a 3.5% general economic increase as well as an additional 1% increase to the Employers original offer to meet the recommendation of the Public Interest Commission.

Return to table 1 note * referrer

Table 1 Note 2

The additive cumulative wage increase for a given year is obtained by taking a running sum of the previous rate increases and of the current years rate increase
(e.g., in 2024: 1.5%+ 3.5%+1.0%+3.0% = 9%).

Return to table 1 note ** referrer

Table 1 Note 3

The compounded cumulative wage increase is calculated by applying the wage increase for a given year before applying the wage rate increase for the following year.

The compounded cumulative wage increase rate can be obtained by calculating the total growth between the starting and final salaries (which rounded to one decimal and expressed as a percentage, corresponds to 9.3%).

This method reflects the total effective salary growth from the first to the last year. It is compounded because it takes into account that the annual salary rate increases are applied on a growing salary over time.

Return to table 1 note *** referrer

Individual wage increase (%) N/A 1.5% 3.5% 1.0% 3.0% N/A
Cumulative wage increase (%)
(additivetable 1 note **)		 N/A 1.5% 5.0% 6.0% 9.0% N/A
Cumulative wage increase (%)
(compoundedtable 1 note ***)		 N/A 1.5% 5.1% 6.1% 9.3% N/A
Average increase ($) N/A $1,010 $3,401 $4,108 $6,250 $6,250
Average Salary $67,305 $68,315 $70,706 $71,413 $73,555 $73,555

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