Government workers in British Columbia earn 4.4 per cent higher wages on average than comparable private-sector employees, according to a new study from the Fraser Institute.
The study analyzed 2024 data from Statistics Canada’s Labour Force Survey and found the wage gap persists across federal, provincial and municipal government workers in the province. Even after adjusting for unionization status, government employees still earn 2.8 per cent more than their private-sector counterparts.
The findings come as the BC government projects a deficit of over $11 billion this year.
Pension and benefits gap
Beyond wages, government workers receive substantially more generous non-wage benefits than private-sector employees across Canada.
In 2024, 84.3 per cent of public-sector workers had registered pension plans, compared to only 15.9 per cent in the private sector. Among those with pensions, 93.9 per cent of government workers had defined-benefit plans that guarantee retirement income, versus 41.8 per cent of private-sector workers.
Public-sector employees also retired 1.4 years earlier on average than private-sector workers.
Time off and job security
Government workers took 15.8 days of personal leave in 2024, compared to 10.4 days for private-sector employees.
Public-sector workers were also seven times less likely to lose their jobs than private-sector employees. Job loss affected 0.4 per cent of government workers compared to 2.9 per cent in the private sector.
Fiscal implications
Closing the compensation gap between government and private sectors could help reduce costs as governments face mounting deficits, said Jake Fuss, director of fiscal studies at the Fraser Institute.
“All levels of government in British Columbia — municipal, provincial and federal — must find ways to reduce costs as spending and borrowing have continued to ramp up,” said Fuss. “Closing the compensation gap between the government and private sectors would reduce costs and help governments move towards balancing their budgets.”
The study is titled “Comparing Government and Private Sector Compensation in British Columbia.”
