While Canadians Get Hit With New Carbon Tax, Ottawa Gives Itself a Hefty Pay Raise

The Canadian Taxpayers Federation estimates members of Parliament will take a 4.2 per cent pay raise on April 1. The same day the carbon tax will reach 23%.

“The federal government is more than $1 trillion in debt, taxpayers are struggling to afford basic necessities and MPs don’t deserve raises, so this is the perfect time to stop rubberstamping the pay raises politicians give themselves every year,” said Franco Terrazzano, CTF Federal Director. “MPs stopped pay raises in the past and they should stop this year’s pay raise.”

A backbench MP’s salary is currently $194,600. A minister collects $287,400, while the prime minister takes home a $389,200 annual salary.

MPs give themselves pay raises each year on April 1, based on the average annual increase in union contracts with corporations that have more than 500 employees. 

While final pay numbers have not been released, contract data published by the government of Canada shows the average annual increase in the private sector was 4.2 per cent in 2023. Using this data, the CTF estimates this year’s pay raise will amount to an extra $8,100 for backbench MPs, $11,900 for ministers and $16,200 for Prime Minister Justin Trudeau. 

After this year’s pay raise, backbench MPs will receive a $202,700 annual salary, according to CTF estimates. A minister will collect $299,300, while Trudeau will take home $405,400. 

The federal government stopped automatic MP pay hikes from 2010 to 2013 in response to the 2008-09 recession.

“MPs should know better than to give themselves raises while their constituents are worried about rising mortgage payments and are struggling to feed their families,” Terrazzano said. “It’s not rocket science: MPs should do the right thing and stop their upcoming pay raise.”

The average annual salary among all full-time workers is about $67,000, according to Statistics Canada.