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4h ago

PBO Puts 2024–25 Federal Personnel Costs at $71.1 Billion, Projects Further Growth by 2029–30

The fiscal watchdog sets a baseline that points to mounting pressure on operating budgets ahead of a multi-year savings plan.

Parliamentary Budget Officer Yves Giroux, centre, waits to appear before the Standing Committee on National Security, Defence and Veterans Affairs (SECD) at the Senate in the Parliamentary Precinct of Ottawa, on Monday, June 3, 2024. THE CANADIAN PRESS/Spencer Colby
Innovation, Science and Industry Minister Francois-Philippe Champagne speaks during a news conference on tariffs, Wednesday, March 12, 2025 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Parliamentary Budget Officer Yves Giroux reports that personnel spending is set to increase this fiscal.
Parliamentary Budget Officer Yves Giroux prepares to appear before a committee in Ottawa in 2022. A PBO report published Thursday shows that if left unchecked, staffing costs are expected to rise to $76.2 billion by 2029-30

Overview

  • Personnel spending rose from $69.6 billion last year to $71.1 billion even as the public service shed about 9,807 jobs, Treasury Board data show.
  • The PBO projects personnel costs could reach $76.2 billion by 2029–30, adding roughly $8.5 billion to the deficit over five years if no new cuts are made.
  • The workforce equals about 441,000 full-time equivalents today and is projected at roughly 442,000 by 2029–30, with average per‑FTE costs rising to $139,000 for pay and over $172,000 including benefits.
  • Finance Minister François‑Philippe Champagne has directed departments to prepare operational reductions of 7.5% in 2026–27, 10% the following year, and 15% by 2028–29.
  • The projections exclude planned defence increases and any savings from the upcoming spending review, as the government pursues a goal of lifting defence outlays to 2% of GDP by March 2025, requiring more than $9 billion annually.