Ontario Government Proposes Changes to MPP Salaries and Pension Plan
The Ontario government has introduced legislation to change compensation for Members of Provincial Parliament (MPPs), including ending a salary freeze and re-establishing a pension plan, according to a government news release issued on May 29, 2025. The proposed legislation, supported by all parties in the legislature, would set a new base salary for MPPs and create a new pension arrangement. Salary changes would take effect following the 2025 election, and the pension plan would begin on January 1, 2026, according to the announcement.
According to the government release, these changes come after more than 15 years of frozen MPP salaries, during which time compensation levels have fallen behind those of some municipal officials, such as city councillors. The government states that, for example, in 2025 a City of Toronto councillor will earn $170,588.60 and the Toronto mayor will earn $231,635.04.
Details from the government news release indicate that the legislation would amend the Legislative Assembly Act to set the base salary for MPPs at 75 percent of the federal Members of Parliament (MPs) sessional allowance. The adjustment, according to the release, follows a previous recommendation by the Integrity Commissioner. The release states that, if passed, an MPP’s base salary would become $157,350 per year, effective on the day of the 2025 election. Annual increases would be tied to changes in federal MP salaries, the government notes.
The proposed pension plan, described in the government release, would provide a defined benefit pension for MPPs and be integrated with the Public Service Pension Plan (PSPP). MPPs would join the PSPP on the same terms as other members and would also receive a supplementary pension benefit. The release states this would replace the current arrangement, which provides a contribution of 10 percent of salary. Under the plan, the government states, full pension benefits would be available to MPPs who serve at least six years, with service time counted from the end of the current parliamentary session. The pension plan and supplement, if approved, would take effect January 1, 2026.