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97.8% accurate: Ottawa making progress on replacing troubled Phoenix pay system

by HR News Canada
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The federal government says it is making progress on fixing and modernizing its human resources (HR) and pay systems for public servants, aiming to resolve ongoing pay issues and improve the overall employee experience.

In 2024, it said its enterprise-wide average biweekly payroll accuracy was 97.8%. The payroll system covers some 430,000 employees and handles about 13.1 million payments worth $36 billion annually.

As part of the 2024 budget, an additional $135 million has been allocated to further test and design a new HR and pay solution, which will eventually replace the problematic Phoenix pay system. This funding supports efforts to standardize and simplify pay and HR processes across the public service, it said.

Quarterly progress

The government released its first quarterly progress report, detailing several initiatives underway:

  • Standardizing and simplifying pay and HR processes.
  • Implementing the Pay Centre’s 2024-25 strategy to reduce the backlog of pay transactions.
  • Developing the Data Hub initiative.
  • Leveraging artificial intelligence in operations.
  • Configuring the new HR and pay solution.
  • Budgeting for ongoing operations and transformation projects for 2024-25.

This fall, user awareness sessions will allow public servants to try the new Dayforce solution and provide feedback, aiming to tailor the system to meet specific needs, it said.

Ottawa launches Facebook page to help employees

In an effort to increase transparency and support, the government said it has launched a GC Employee Pay and Benefits Facebook page to assist employees with HR and pay inquiries.

“We are improving our current operations to better serve public servants while also working towards a system that meets the needs of the Government of Canada now and in the future. It is our responsibility to ensure public servants are paid accurately and on time for their important work,” said Jean-Yves Duclos, Minister of Public Services and Procurement.

Anita Anand, President of the Treasury Board, emphasized the commitment to accuracy and timeliness in pay.

“All public service employees deserve to be paid accurately and on time. That is why we are supporting improvements to our systems by reducing the number of HR systems in the core public administration and facilitating automation. This first progress report shows that the government is on track in exploring a new employee-focused HR and pay solution.”

Key facts

  • $135 million allocated in Budget 2024 to explore a new HR and pay solution, with $112.1 million for Public Services and Procurement Canada (PSPC) and $22.7 million for the Treasury Board Secretariat (TBS).
  • The Phoenix system currently manages pay for over 430,000 current and former public servants across more than 100 departments and agencies, handling approximately 13.1 million payments worth $36 billion in 2023.
  • An enterprise-wide average biweekly payroll accuracy of 97.8% has been achieved in 2024.
  • The Public Service Pay Centre serves 49 organizations with over 250,000 clients.

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