Earlier this year, Treasury Board announced it would be implementing a “pay in arrears” system for federal government employees as part of their Pay Modernization Initiative.
Public service employees are paid on a “current” basis. They receive their pay on a Wednesday for the 10 day pay period that ends on that same day. As the pay needs to be processed several days in advance, any changes to an individual’s pay in those last few days (such as leaves or acting pay) is not accounted for immediately, but requires pay adjustments in subsequent paycheques.
The pay “in arrears” system means everyone will be paid (on Wednesday) for work that was done in a previous 2 week period. As the work is already done, there will be no need for retroactive adjustments – they will know if you took leave or were acting in a higher position, etc.
The government is aiming change to “pay in arrears” in April 2014. Anyone hired after that will be on the new system and will receive their first paycheque up to 4 weeks after starting.
The prospect of current members having their pay held back, or “clawed back” under this transition alarmed many workers and their unions, and prompted a response from the federal bargaining agents and their members. Federal union members spoke up, and the government listened.
The PSAC and other unions were able to convince Treasury Board to minimize the impact on all current public service workers. These workers will be transitioned to the new system in April 2014 in such a way that they will not lose any pay, or have any pay withheld.
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