[Canada] 800 Public Service Pay Centre contracts extended to handle wave of public service exits

[Canada] 800 Public Service Pay Centre contracts extended to handle wave of public service exits
12 May 2026

In Canada, the ripple effect of the Phoenix pay system scandal continues to be felt. Public Services and Procurement Canada (PSPC) has announced the extension of hundreds of term contracts at the federal pay centre in Miramichi, New Brunswick, and the allocation of $36 million in extra funding to handle an expected surge in pay transactions, HR Reporter reports.

The moves come as thousands of public servants retire or are laid off, according to recent reporting from the Ottawa Citizen.

PSPC is reportedly extending the contracts of between 750 and 800 term employees at the Public Service Pay Centre - responsible for administering the Phoenix pay system - until the end of December 2026. 

Term staff work on fixed‑end contracts and lack the job security of indeterminate employees.

In an emailed statement to the Citizen, PSPC spokesperson Mario Morneau said, “This capacity is made up primarily of compensation advisors who process pay cases directly.” 

He added that their contracts will now expire at the end of 2026.

The federal government reportedly intends to spend $36 million on “surge capacity” at the pay centre to process exit packages, severance and other pay changes linked to Prime Minister Mark Carney’s spending review.

The Ottawa Citizen report stated that it is expected to cut about 30,000 positions from the federal public service. The funding was announced in the spring economic update released in late April.

The aim of PSPC’s decision to extend term contracts and add surge funding is to ensure the pay centre can manage increased volumes of complex transactions associated with retirements, layoffs and redeployments during the spending review period


Source: HR Reporter

(Quote via original reporting)

In Canada, the ripple effect of the Phoenix pay system scandal continues to be felt. Public Services and Procurement Canada (PSPC) has announced the extension of hundreds of term contracts at the federal pay centre in Miramichi, New Brunswick, and the allocation of $36 million in extra funding to handle an expected surge in pay transactions, HR Reporter reports.

The moves come as thousands of public servants retire or are laid off, according to recent reporting from the Ottawa Citizen.

PSPC is reportedly extending the contracts of between 750 and 800 term employees at the Public Service Pay Centre - responsible for administering the Phoenix pay system - until the end of December 2026. 

Term staff work on fixed‑end contracts and lack the job security of indeterminate employees.

In an emailed statement to the Citizen, PSPC spokesperson Mario Morneau said, “This capacity is made up primarily of compensation advisors who process pay cases directly.” 

He added that their contracts will now expire at the end of 2026.

The federal government reportedly intends to spend $36 million on “surge capacity” at the pay centre to process exit packages, severance and other pay changes linked to Prime Minister Mark Carney’s spending review.

The Ottawa Citizen report stated that it is expected to cut about 30,000 positions from the federal public service. The funding was announced in the spring economic update released in late April.

The aim of PSPC’s decision to extend term contracts and add surge funding is to ensure the pay centre can manage increased volumes of complex transactions associated with retirements, layoffs and redeployments during the spending review period


Source: HR Reporter

(Quote via original reporting)