Ontario government workers earn about 7.9% more than private-sector employees

A Fraser Institute study found Ontario public-sector workers earned 7.9% higher wages than private-sector workers in 2024 and had much higher registered pension coverage, including a larger share of defined-benefit plans.

Ontario public-sector workers earned higher pay and received more generous benefits than private-sector workers in 2024, according to a new study by the Fraser Institute. The report uses Statistics Canada's Labour Force Survey and controls for factors such as education, age, gender, marital status, job permanence and immigrant status. It finds a wage premium and compares pension coverage, retirement age, job loss rates and time off for personal reasons. The study also notes provincial budget pressures in its discussion of costs. Key findings: - Government workers earned 7.9 per cent higher wages than private-sector counterparts in 2024. - After adjusting for unionization status, the wage advantage was 6.5 per cent. - Just over 82 per cent of public-sector workers had a registered pension plan in 2024, compared with 23.6 per cent in the private sector; among those covered, 94.8 per cent of government workers had defined-benefit pensions. - Government workers retired about 2.2 years earlier on average than private-sector workers. - The annual job loss rate was 3.5 per cent in the private sector versus 0.6 per cent in the public sector. - Government workers lost more work time for personal reasons on average (14.4 days) than private-sector workers (8.2 days). Summary: The study documents measurable differences in wages, pension coverage and job security between Ontario's public and private sectors. The Fraser Institute noted Ontario's projected deficit of over $13 billion and suggested that narrowing the compensation gap could reduce government costs. Undetermined at this time.