The federal government has announced eight new commitments for the 2025-26 fiscal year as it continues working to resolve ongoing pay problems affecting more than 430,000 current and former public servants.
Public Services and Procurement Canada released its fourth quarterly progress report Monday, outlining efforts to improve human resources and pay systems while moving toward replacing the troubled Phoenix pay system. The report details new unified actions for pay, findings from the Dayforce feasibility study, and expanded social media outreach on government pay and benefits.
The current systems handle approximately 12.3 million payments annually, totalling about $38.5 billion in gross payments across more than 100 departments and agencies. In 2024, the government achieved a 98.1 per cent accuracy rate for biweekly payroll processing.
Dayforce selected as replacement solution
The government has selected Dayforce as the new HR and pay solution following completion of a feasibility study. The decision marks a significant step in efforts to replace Phoenix, which has caused widespread pay problems since its implementation.
The Public Service Pay Centre currently provides pay services for 49 organizations serving over 250,000 clients. Public Services and Procurement Canada and Treasury Board of Canada Secretariat have been collaborating on various projects to support employees while improving current operations.
Minister emphasizes commitment to accurate pay
“Federal public servants are entitled to be paid accurately and on time for the important work they do,” said Joël Lightbound, Minister of Government Transformation, Public Works and Procurement. “The Government of Canada is taking the necessary steps to resolve HR and pay issues while working on a solution to replace the Phoenix pay system. We must ensure that we are supporting the hardworking public servants who work diligently everyday to provide the services Canadians rely on.”
The government plans to continue engaging with employees and stakeholders while working on initiatives to support staff and resolve HR and pay issues. Quarterly progress reports will continue to be published with regular updates posted on the department’s website.
