If government workers were compensated at private sector norms, Canadian families would have an extra $3,110 per year to put toward their own retirement, according to the Canadian Federation of Independent Business (CFIB).
It says federal, provincial and municipal government employees are compensated between 25% and 42% above the private sector, taking into account wages and benefits.
If they were compensated at private sector norms, Canadians could save $27 billion annually—or $3,110 per family (where both parents are working) or $1,555 per worker.
“It’s hard for Canadians to buy the argument for higher payroll taxes when our governments have created a two-tiered pension system, where the majority subsidize the nest eggs of the minority,” says CFIB’s executive vice-president, Laura Jones.
These findings come in advance of Friday’s meeting of Canada’s premiers in Toronto, where hiking Canada/Quebec Pension Plan premiums is expected to be discussed.
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