Ontario politicians are about to get huge $41,000 raises

Ontario Members of Provincial Parliament (MPPs) are set to receive a significant pay increase and gain access to a pension plan for the first time in decades, following new legislation introduced at Queen's Park.

The legislation proposes changes to the Legislative Assembly Act to raise the base salary for MPPs by $41,000, ending a pay freeze that's been in place for 16 years since 2009. The base salary for MPPs, which has been stuck at $116,500 since 2009, would rise by 35 per cent to $157,350 per year.

This equals 75 per cent of the compensation of federal Members of Parliament (MPs), who are currently paid $209,800.

The increase will be retroactive to the most recent provincial election, and officials say that the salary increases will only represent 0.06 per cent of the total compensation given to public servants in Ontario.

Premier Doug Ford's salary would also increase from $208,974 to $282,129. Cabinet ministers would see their pay rise from $165,851 to $223,909, while the Leader of the Official Opposition would receive $244,207, up from the current $180,866.

Despite the pay increase, MPPs will still earn less than Toronto city councillors, who make $170,588.60 annually. Ford, on the other hand, would earn more than Toronto Mayor Olivia Chow, whose salary is currently $225,304.

In addition to the pay raise, the legislation would reinstate a defined benefit pension plan for MPPs for the first time since the Mike Harris PC government abolished it in 1995. The proposed plan would replace the current retirement savings arrangement and provide politicians with a secure retirement benefit.

If passed, MPPs will be able to access their full pension benefits following six years of service, starting at the conclusion of the current session of provincial parliament. The new pension plan would be integrated with the Public Service Pension Plan (PSPP), and politicians would join on the same terms as other members, with an additional supplementary pension benefit.

The proposed pension plan is anticipated to cost $6.8 million in total and would replace the current plan on Jan. 1, 2026.

The legislation has already passed its first, second, and third readings and is expected to receive royal assent and become law.