[Canada] Report into Phoenix payroll disaster ten years on

In Canada, ten years after the launch of the disastrous Phoenix pay system, a new report from the Professional Institute of the Public Service of Canada (PIPSC) examines what happened, Phoenix’s ongoing impact, and takeaways about the way complex government systems are being delivered today, PIPSC reports

The federal government has spent nearly $5 billion addressing Phoenix-related failures since 2017, with nearly $350 million already spent developing a replacement. 

By late 2025, approximately 238,000 pay transactions were still reportedly outstanding. The Phoenix fallout brought financial stress, uncertainty, and years of disruption to thousands of the country’s public servants.

The report, Phoenix: 10 Years of Failure, takes a comprehensive look at where things stand today.

For a deep dive into this dramatic, headline-hitting chapter in payroll history, listen to the GPA’s Phoenixed podcast.

PIPSC said, “Phoenix did not fail because payroll is inherently unmanageable. It failed because internal expertise was cut before the system was ready. Roughly 1,200 experienced pay advisor positions were eliminated before launch. Services were centralised. Oversight was reduced. Documented risks were not addressed.

“When problems emerged, the internal capacity to correct them had already been dismantled.

“Concerns about staffing capacity, system readiness, and implementation pace were raised before Phoenix went live. The Auditor General later confirmed that these warnings were not heeded.

“The lesson of Phoenix is not just about payroll. It is about capacity.

“It is about what happens when governments reduce the very expertise required to manage complexity at scale. It is about what happens when long-term institutional knowledge is replaced with short-term contracting and outsourcing. It is about what happens when cost-cutting is mistaken for efficiency.”

It continued, “It takes experts to run a country. It takes experienced public servants to design, oversee, and stabilise the systems that Canadians depend on every day.

“Phoenix should not be treated as a closed chapter in administrative history.

“It is a warning.

“Canada cannot afford to repeat this mistake.”

Source: PIPSC

(Link and quotes via original reporting)

In Canada, ten years after the launch of the disastrous Phoenix pay system, a new report from the Professional Institute of the Public Service of Canada (PIPSC) examines what happened, Phoenix’s ongoing impact, and takeaways about the way complex government systems are being delivered today, PIPSC reports

The federal government has spent nearly $5 billion addressing Phoenix-related failures since 2017, with nearly $350 million already spent developing a replacement. 

By late 2025, approximately 238,000 pay transactions were still reportedly outstanding. The Phoenix fallout brought financial stress, uncertainty, and years of disruption to thousands of the country’s public servants.

The report, Phoenix: 10 Years of Failure, takes a comprehensive look at where things stand today.

For a deep dive into this dramatic, headline-hitting chapter in payroll history, listen to the GPA’s Phoenixed podcast.

PIPSC said, “Phoenix did not fail because payroll is inherently unmanageable. It failed because internal expertise was cut before the system was ready. Roughly 1,200 experienced pay advisor positions were eliminated before launch. Services were centralised. Oversight was reduced. Documented risks were not addressed.

“When problems emerged, the internal capacity to correct them had already been dismantled.

“Concerns about staffing capacity, system readiness, and implementation pace were raised before Phoenix went live. The Auditor General later confirmed that these warnings were not heeded.

“The lesson of Phoenix is not just about payroll. It is about capacity.

“It is about what happens when governments reduce the very expertise required to manage complexity at scale. It is about what happens when long-term institutional knowledge is replaced with short-term contracting and outsourcing. It is about what happens when cost-cutting is mistaken for efficiency.”

It continued, “It takes experts to run a country. It takes experienced public servants to design, oversee, and stabilise the systems that Canadians depend on every day.

“Phoenix should not be treated as a closed chapter in administrative history.

“It is a warning.

“Canada cannot afford to repeat this mistake.”

Source: PIPSC

(Link and quotes via original reporting)