Ontario MPPs have received a nearly $41,000 raise and will also be eligible to participate in a pension plan for the first time in decades.
The salary for MPPs has been frozen at $116,500 since 2009, with successive governments on either end of the political spectrum opting to keep the measure in place.
But legislation that was enacted at Queen’s Park on Thursday afternoon lifts the freeze and sets MPP pay at 75 per cent of the salary awarded to Members of Parliament—currently $209,800.
It means that MPP salaries will be increased by 35 per cent to $157,350 with the change retroactive to the day of the most recent Ontario election.
The premier’s salary will increase from $208,974 to $282,129 while cabinet ministers will see their salaries hiked from $165,851 to $223,909.
The Leader of the Official Opposition will now be paid $244,207, up from $180,866.
Officials say the salary increases will add $6 million in payroll costs in 2025-2026, but will only represent 0.06 per cent of the total compensation awarded to Ontario’s public servants.
The legislation, which was passed with unanimous consent from the opposition parties, also gives MPPs access to Ontario’s public service pension plan, which was previously abolished by the Mike Harris PC government in 1995.
Under the legislation, MPPs will join and contribute to the plan on the “same terms” as other members who serve elsewhere in Ontario’s public service.
But officials say that due to the “unique nature” of their work, MPPs will also be eligible for a “supplementary benefit” that would allow them to receive pension benefits after six years of service.
They could begin collecting their full pension benefits at age 65 or receive a reduced pension by the age of 55.
Officials say current MPPs will be given credit for the years of service they have already logged but must still be on the job at the end of this current session of Parliament to be eligible.
The pension will eventually replace a benefit, which saw the government contribute the equivalent of 10 per cent of an MPPs salary to a retirement savings account each year.
The cost of the pension plan to the government is expected to total $6.8 million in 2026-2027.
The new legislation comes after Premier Doug Ford hinted he would lift the pay freeze for MPPs during his first news conference following his re-election this past winter.
At the time, he said it was “not fair” that MPPs had not received a pay increase since 2008.
“I don’t want to sound like a bleeding heart for politicians but come on folks, these guys work their backs off,” Ford previously said.
Officials say the eligibility for a pension after six years of service was set to mirror the rule for federal Members of Parliament.
But in a statement on Thursday afternoon, the Canadian Taxpayers Federation for “voting themselves a massive pay hike and pension as Ontario continues to work to pay down a deficit that is projected to reach $461 billion.
“While families are tightening their belts and the province sinks deeper into debt, Ontario politicians are stuffing their own pockets,” spokesperson Nicolas Gagnon said. “They’re voting themselves a raise and a taxpayer-funded pension and they expect Ontarians to just smile and pay for it.”
The new salary structure will still result in MPPs earning less than Toronto City Councillors ($170,558).
Ford will now make more than Toronto Mayor Olivia Chow, who previously had a higher salary at $225,304.
