Budget 2025 and the Public Service
The Government of Canada has announced measures in Budget 2025 that affect the public service. These measures will support the government’s priority of spending less on government operations and investing more to strengthen the country.
Comprehensive Expenditure Review
Budget 2025 outlines $13 billion in annual savings by 2028-29 across more than 100 federal organizations as a result of the Comprehensive Expenditure Review. These savings are being reviewed to assess impacts for each organization. Implementation will only begin if the Budget receives support from Parliament.
Workforce adjustment
The Budget proposes to return the public service to a more sustainable level of 330,000 employees across government by 2028-29. This includes a reduction of 1,000 executive positions over the next two years to ensure adjustments also include leadership roles.
Where there are impacts on work units or positions in the organization, the goal will be to minimize impacts on employees. All available tools will be used, including attrition and existing workforce adjustment provisions that have been co-developed or negotiated with employee representatives and bargaining agents. Career transition measures are also available for executives.
Early retirement incentive program
To manage reductions to the greatest extent possible through attrition and voluntary departures, Budget 2025 proposes a voluntary early retirement incentive program. Eligible employees may be able to retire with an immediate pension based on years of service, with no reduction for early retirement.
Public Sector Pension Plans contribution rates
Budget 2025 announces the government's intention to consult with key stakeholders about CPP and QPP enhancements. The goal is to ensure that federal employees continue to receive pension benefits, without overcontributing. These changes would have no impact on pension amounts (equal to about 2% of salary for each year of service). They would result in savings for the government and employees through a decrease in contribution rates. The same adjustment was already made to members of the Parliamentary Pension Plan starting .