The number of federal government employees grew sharply from 340,000 in 2014/15 to nearly 440,000 in the most recent fiscal year. The rise in wages and salaries has grown at an average annual rate of 2.8 percent over the same period – a figure that, while more modest, surpasses the average annual rate of inflation for those years. The surge in both headcount and compensation has driven wages and salaries to rise 72 percent — from $29.8 billion in 2009/10 to $51.4 billion in 2023/24. The C.D. Howe Institute’s 2025 Shadow Budget proposes capping departmental operating budgets for current compensation at their 2024 levels for five years, allowing departments to reward high performers and trim less valuable positions.Note: Wages and salaries correspond to personnel expenses minus consolidated crown corporations, cost of pension and other benefits, and payroll contributions.
