Managing Myself *
Terms and Conditions of Employment
The Government of Canada Policy on the Management of Executives and the Directive on Terms and Conditions of Employment for Executives set out the requirements for the equitable and consistent administration of Executive compensation, including salary and non-salary elements. This Directive applies to the core public administration as defined in Section 11(1) of the Financial Administration Act, unless excluded through specific acts, regulations or Orders in Council.
If you are employed by an organization not identified in Section 11 of the Financial Administration Act as part of the core public administration, you should consult your Human Resources Department for information regarding terms and conditions of employment.
Official Languages
- The Public Service Commission provides resources for confirming previous second language test results and to assist public servants attain the second language requirements of their position.
- There is additional emphasis on not only achieving the required level of bilingualism for a position, but on maintaining the required level of proficiency. In general, executives are required to maintain their second language proficiency. This requirement should be reflected in your letter of offer.
Security Clearances
Security screening is at the core of the Policy on Government Security as a fundamental practice that establishes and maintains a foundation of trust within government, between government and Canadians, and between Canada and other countries.
Deputy heads are responsible for ensuring that all individuals who will have access to government information and assets, are security screened at the appropriate level before the commencement of their duties and are treated in a fair and unbiased manner.
Deputy heads are also responsible for ensuring appropriate remedial actions are taken to address issues regarding policy compliance, allegations of misconduct, suspected criminal activity or security incidents, including denying, revoking or suspending security clearances and reliability status, as appropriate.
For additional information regarding individual security screening, refer to the Standard on Security Screening.
Compensation
The Components of Executive Compensation
Executive compensation in the core public administration and many parts of the federal public service is based on the principle of total compensation. Total compensation consists of both salary and non-salary elements. Salary elements include base salary and performance pay. Some examples of non-salary elements include leave entitlements, group benefits coverage, superannuation and special sick leave.
The Government of Canada’s Compensation Principles for Senior Leaders
Established in 1997, the Advisory Committee on Senior Level Retention and Compensation provides independent, expert advice to the government, through the President of the Treasury Board, on total compensation of Executives and Governor in Council appointees. The committee considers the context and nature of Executives’ work, and the composition and size of Executive groups. It also considers compensation principles and strategies, salaries, performance pay, leave and other benefits, and other aspects of human resources management to be considered in establishing total compensation levels.
The existing Chair and committee members were appointed in 2014 and in 2015, published its latest Report and Recommendations to the Government on Executive compensation. The Committee exists today, but has not met since 2015.
The principles underlying the compensation of Senior Leaders, as stated in the 2015 Report of the Advisory Committee on Senior Level Retention and Compensation, include:
Fairness and Transparency
- The quantum and form of total compensation for senior public servants is fair, reasonable and transparent in light of the changing and increasingly complex demands placed on senior leaders and the distinctions in managerial and leadership responsibilities between senior leaders and collectively bargained employees.
- Internal equity and the incidence of compression and inversion are considered in deliberations.
Fiscal Responsibility
- Total compensation is affordable, and responsive to the economic and social environment.
Performance
- Compensation is intended to reward senior leaders for meeting and exceeding strategic and operational objectives that are aligned with enterprise-wide strategies on an individual and unit basis and which respect public service values.
- Performance pay is part of the total compensation package.
Comparability
- Senior leader compensation is comparable to that of positions with similar scope and responsibilities in other organizations from which recruitment is likely or desirable.
Recruitment and Retention
- Compensation attracts qualified individuals into the senior levels from both inside and outside the public service and serves to retain them.
Structure
- Total compensation of senior leaders is comprised of base salary, incentives and benefits.
- Incentives are performance based and senior leaders understand the individual and unit objectives they are required to achieve.
- Increases to compensation are made in a timely manner.
Base Salary
Base salary is defined as the fixed recurring portion of an employee’s cash compensation received for the performance of the regular duties of a position, exclusive of allowances, performance awards or other compensation or gratuities.
The salary elements of Executive compensation are described in Appendix A of the Directive on Terms and Conditions of Employment for Executives.
Executive salary ranges are revised periodically, as authorized by the Treasury Board. The current salary ranges for executives are posted on the Treasury Board website.
When an individual is being appointed to an Executive position from outside the public service, they can be appointed at any rate of pay within the applicable salary range of the executive position as determined by the delegated manager. Where their previous salary exceeds the salary maximum of the executive position, the deputy head can authorize a one-time lump sum payment. Details on calculating this lump sum can be found in article A.I.4 of Appendix A in the Directive on Terms and Conditions of Employment for Executive.
When an individual is being appointed to an Executive position from other occupational groups within the public service, which includes persons appointed from the Royal Canadian Mounted Police and the Canadian Forces, an increase in salary of 5% of the salary maximum of the Executive position is the norm. The salary on appointment is at least the salary minimum of the Executive position.
In exceptional circumstances, the Deputy head can authorize an increase in salary of up to 10% of the salary maximum of the Executive position. If the increase causes the new salary to exceed the maximum of the salary range, the amount above the salary maximum is paid as a one-time lump sum on appointment. The amount of the increase is established within limits set out in article A.I.4.1.2 of the Directive on Terms and Conditions of Employment for Executives.
No salary increase is granted when an appointment or deployment is to a position at the same level and Executives are not entitled to payment for overtime.
See the section “Performance Management and Performance Awards” for information on performance pay.
Pay Services
The Public Service Pay Centre provides pay services to 50 federal departments and agencies. Some organizations manage pay internally. The list of institutions served by the Public Service Pay Centre is available online.
If your organization is not included in the Public Service Pay Centre client list, consult your Human Resources Department for assistance.
For employees of the federal public service who receive compensation services from the Public Service Pay Centre, payday is every second Wednesday and is by direct deposit. Staff at the Public Service Pay Centre providing services can be reached online, by mail or by telephone:
By Mail
Public Services and Procurement Canada
Public Service Pay Centre: Mail Facility
PO Box 6500
Matane QC G4W 0H6
By Telephone
- In Canada or the United States: 1-855-686-4729
- Monday to Friday, 7 am to 7 pm Eastern Standard Time or Eastern Daylight Time
- Outside Canada and the United States: 506-424-4330
- Monday to Friday, 7 am to 7 pm Eastern Standard Time or Eastern Daylight Time
If you have access to the internal Government of Canada network, you may access many pay-related services and useful information online.
If you do not have access to the Government of Canada network, consult your Human Resources Department.
Severance
Federal Budget 2011 announced the end to executive severance accumulation for resignation and retirement in the public service. Federal public service departments and separate agencies were advised of this change by TBS-OCHRO on August 2, 2011.
Severance benefits for retirement and resignation ceased to accumulate effective close of business day, October 1, 2011.
Severance benefits accumulated up to October 1, 2011 were eligible to be cashed out based on options presented to executives at the time (see Options for Severance Cash-out below).
For executives who had completed at least one full year of service as of October 1, 2011, the cash-out payment was calculated at the rate of one (1) week of pay, as of that date, for each year of completed service, up to a maximum of 28 weeks.
Partial years of service were prorated if the executive had been employed on an indeterminate basis.
Options for Severance Cash-out
As of October 1, 2011, indeterminate executives who had at least one (1) year of completed service, were asked to select one of the following three options to initiate the cash out of their accumulated severance:
- Cash out based on their substantive rate of pay as of October 1, 2011;
- Cash out upon separation from the Core Public Administration at the rate of pay in effect at that time;
- A combination of the two options above. This included the option of electing to cash out part of the accumulated weeks of severance immediately and the balance when separating from the Core Public Administration. Executives who left the Core Public Administration on or after October 2, 2011 for an organization outside the Core Public Administration had their accumulated severance paid out in its entirety if the new employer did not have an identical severance plan or did not accept the accumulated severance liability.
Severance benefits were maintained for cases of lay-off, death, termination on probation, and termination for reasons of incapacity or incompetence, though the years of service were reset to zero as of the date when the elimination of further accrual of severance benefits came into effect and accumulation commenced anew to avoid paying severance benefits twice for the same period.
No executive is eligible to receive a severance cash-out twice.
Executives were provided until January 31, 2012 to select an option. No extensions to this deadline were permitted and executives who did not select an option by the deadline were deemed to have chosen the severance cash out as a single payment at the time of their termination of employment from the Core Public Administration.
Executives wishing to confirm their decision from 2011 should contact their Compensation Service Provider.
Are Pensions Affected by the Cash-out of Severance?
Severance payments are not pensionable.
Deductions Taken from the Cash-out of Severance
While the cash-out of severance is taxable, it is not subject to Public Service Superannuation Act pension contributions. Employment Insurance (EI) and Canada Pension Plan/Quebec Pension Plan (QPP) may be deducted from a severance payment, if the executive has not reached their maximum annual contribution limit at the time the payment is made.
Calculating the Severance Payment
All payments in lieu of severance are based on the number of years of eligible years of service accumulated up to October 1, 2011 multiplied by the executive’s weekly rate of pay for their substantive either on the elected date of cash out or the date of termination of employment from the Core Public Administration.
Transferring Your Severance Pay
On or after retirement, you may be able to transfer some of your severance pay to your own Registered Pension Plan (RPP), a Specified Pension Plan (SPP), a Registered Retirement Savings Plan (RRSP) or a Pooled Registered Pension Plan (PRP). Important information regarding the Eligible and Non-Eligible part of your severance pay is available at the following Government of Canada site: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/transferring/transferring-retiring-allowances-severance-pay.html.
Death
If an executive dies while employed in the federal public service, their estate shall receive a severance payment in respect of any unpaid severance.
Group Insurance Benefits
Executives, as do all employees of the federal public service, enjoy a generous offering of group insurance benefits, but with some important differences.
As an Executive, if you meet the eligibility criteria under each plan, you are eligible for 100% employer-paid coverage by the Government of Canada under the following group insurance benefit plans:
- Public Service Health Care Plan and Hospital Level III
- If you are not already a Public Service Health Care Plan member when you become an Executive, your coverage will be effective the first day of the month following the date you become eligible. Enrolment information for Executives who are new to the public service is available online.
- If you are already a member of the PSHCP when you become an Executive, your departmental Compensation Services or the Public Service Pay Centre, whichever applies, will stop your contributions, if any.
- Public Service Dental Care Plan
- The Government of Canada pays 100% of the cost of your dental care coverage.
- Public Service Management Insurance Plan
- The Public Service Management Insurance Plan provides 100% employer-paid Long-Term Disability, Basic Life, Accidental Death and Dismemberment and Dependants’ Life Insurance.
- For details on the employer-paid Public Service Management Insurance Plan (PSMIP) benefits that are available to Executives, refer to the Executive Plan Member booklet.
- If you are not already a PSMIP member when you become an Executive, your coverage will be effective the first day of the month following the date you become eligible.
- If you are already a PSMIP member when you become an Executive, your departmental Compensation Services or Public Service Pay Centre, whichever applies, will stop your contributions.
Additional information on the public service group insurance benefit plans, which includes health, dental, disability and life insurance, is available online.
Pension Plan and Retirement
New employees are automatically enrolled in the Public Service Superannuation Plan.
The public service pension plan is designed to provide you with a retirement income payable during your lifetime. Pension benefits are based on your salary, pensionable service, age and reason for termination. The date you became a member of the public service pension plan determines when you will be eligible to receive an unreduced pension benefit. You are encouraged to familiarize yourself with the orientation information kit.
If you recently entered the federal public service, you may be able to transfer your pensionable service into the public pension plan through one of the pension portability provisions of the Public Service Superannuation Act (PSSA). A Pension Transfer Agreement (PTA) permits you to increase your pension assets by transferring the amount available for transfer from your former employer’s pension plan.
If you have questions regarding the public service pension plan, including the possibility of transferring pension credits earned under another pension plan or a service buyback package, the Government of Canada Pension Centre may be reached by mail at:
Public Services and Procurement Canada
Government of Canada Pension Centre
Policy and Advisory Services Division
PO Box 5155
Shediac NB
E4P 8T9
Alternatively, Executives of the Government of Canada have access to a dedicated pension service team that is reachable by telephone at 1-888-742-1300.
Leave
Executives of the Government of Canada have access to a variety of leave types. Part II of Appendix A in the Directive on Terms and Conditions of Employment for Executives summarizes the available leave entitlements.
This Directive contains information on:
- Paid Leave
- Sick Leave
- Personal Leave
- Special Leave With Pay
- Jury Duty Leave
- Bereavement Leave
- Special Leave Without Pay
- Maternity Leave
- Parental Leave
- Vacation Leave
Additional information regarding leave is available in the APEX Fact Sheet on Leave*.
Appendix B of the Directive on Leave and Special Working Arrangements provides Executives with direction regarding Leave Without Pay situations and Appendix C of this Directive explains Pre-retirement Transition Leave. This leave is a special working arrangement whereby eligible employees who are within two years of retirement may reduce their workweek by up to 40 per cent. During this period, pay would be adjusted to reflect the shorter workweek, but pension and benefits coverage, as well as premiums and contributions, would continue at the pre-arrangement levels.
If you are employed by a Separate Agency, you should contact your Human Resources Department to confirm if you are subject to this Directive or one developed by your organization.
Performance Management and Performance Awards
The Directive on Performance and Talent Management for Executives explains the requirements for the management of Executive performance and the administration of performance‑based compensation. This Directive provides important information regarding the requirement for performance management agreements, requirements for managing and assessing Executive performance, an explanation of performance ratings and the administration of performance rewards.
Obtaining Feedback
Performance management is a two-way street. You should feel comfortable asking for feedback. You should:
- Ask for the specific feedback that you need. Rather than asking the broad, “How did I do?” you can focus narrowly on an area where you want help.
- Prepare yourself to listen intently to the feedback you are to receive. Rather than feeling surprised or ambushed, you should view feedback as valuable information that you can use. By assuming a purposeful role, you will likely be more receptive to all forms of feedback and better able to decide what to do with it.
- Gather feedback quickly and regularly. Rather than waiting on feedback, you are able to obtain data for a specific action or situation that you can apply immediately. Frequent, targeted feedback is much more useful than a bi-annual or annual performance feedback meeting in which you might get a combination of generalities that are hard to put into action and specific comments about incidents you do not even remember.
Performance Pay
Performance pay is delivered on an annual cycle (April 1 to March 31) and is determined based on the rating of your assessment over that year.
The Performance Management Program (PMP) for Executives is an essential component in the effective management of a department. The Directive on Performance and Talent Management for Executives which applies to Executives in the core public administration as defined in Section 11 of the Financial Administration Act, unless excluded through specific acts, regulations or Orders in Council, describes the requirements for the Performance Management Program to:
- Link individual Executive accountability to strategies and business priorities,
- Manage the performance of Executives in support of Key Leadership Competencies and values and ethics, and
- Administer performance awards.
As a result of the performance assessment cycle, you may be eligible for an in-range salary movement (if you are not at the maximum of the salary range) and performance pay.
Performance pay does not increase an Executive’s salary. It is, however, included in average salary for pension calculations.
The performance cycle starts on April 1st and ends on March 31st of the following year. Your final rating will determine the performance pay you receive.
In-Range Salary Movement
While in-range salary movements are not part of performance pay, eligibility is dependent upon the successful achievement of results against commitments.
In-range salary movement is the progression through the salary range, up to the maximum of the range. Executives are eligible for in-range salary movement if they obtain a performance rating of “Succeeded Minus” or higher. Normal progression for satisfactory performance is 5% per year so that an Executive’s salary would typically reach the top of the range within 3 years. Higher or lower percentages may be approved by the deputy head based on performance.
The base salary for calculation of increases is that which is in effect on March 31st of the performance year.
Performance Rating |
Movement within Your Salary Range |
In-Range Salary Movement |
Unable to Assess (Level 0) |
Eligible |
Not eligible |
Did Not Meet (Level 1) |
Not eligible |
Not eligible |
Succeeded Minus (Level 2) |
Eligible |
Eligible |
Succeeded (Level 3) |
Eligible |
Eligible |
Succeeded Plus (Level 4) |
Eligible |
Eligible |
Surpassed (Level 5) |
Eligible |
Eligible |
Elements of Performance Pay
Performance pay is paid in respect to the previous performance cycle, and includes two components: at-risk pay and the bonus.
- At-risk pay: Calculated as a portion of salary that must be re-earned each year based on the level of achievement against commitments and demonstration of the Key Leadership Competencies in the achievement of results.
- Bonus: Calculated as a portion of salary only awarded to individuals whose performance has truly surpassed expectations.
Eligibility for At-risk Pay
To be eligible for at-risk pay, Executives must have a valid performance agreement, which includes:
- Personal information – name of Executive and their manager, period covered by the performance agreement and dates for which performance is being reviewed
- Commitments – including mandatory commitments in support of the corporate priorities, performance measures, results achieved, narrative assessments, and approved performance rating
- Signature of the Executive and their manager
- Receive a performance rating of “Succeeded Minus” or higher, subject to the following exceptions:
- Employees from other occupational groups acting in an Executive position for at least three (3) months during the cycle are eligible for at-risk pay. Deputy heads may, however, establish a longer minimum eligibility period in their organization. Deputy heads are required to inform employees of the organizational eligibility period and any other specific organizational standards related to the administration of the Executive Performance Management Program.
- Executives hired as casual workers and incoming Interchange Canada participants are not eligible for performance pay.
Eligibility Requirements
In all circumstances, the requirements of the Directive on Performance and Talent Management for Executives must otherwise be met in order for an Executive to be eligible for performance pay and in-range salary movement.
For newly appointed executives to be eligible for performance pay, they must have performed Executive-level functions for a minimum of 3 months during the performance cycle.
To be eligible for the bonus, you must have been on strength in a position or functions subject to the Directive on Performance and Talent Management for Executives, for the entire performance cycle.
Additional eligibility requirements for performance pay related to different circumstances can be found in the Guide for the Administration of the Performance Management Program for Executives.
Talent Management
Talent management is about ensuring that people are matched to the right job for their skills, competencies, and career plans. Through dialogue, feedback, career support, and individually tailored learning, the potential of individuals can be fully realized, organizational priorities can be met, and public service excellence can be achieved.
Executive talent management is designed to support the ongoing development and retention of Executives while supporting current and future departmental business goals. It helps build sustained excellence in public service leadership by maximizing the contribution of every Executive.
Managing the talent of Executives is a shared responsibility between each Executive, their superior, departments, human resources professionals, deputy heads, and for the core public administration, the Office of the Chief Human Resources Officer (OCHRO). Consult the Treasury Board website on Executive Talent Management for additional information and support.
You are encouraged to also consult the APEX Fact Sheet on Talent Management*.
If you are employed by a Separate Agency, you should contact your Human Resources Department to obtain details regarding any organization-specific talent management programs.
Learning and Development
The Canada School of Public Service (CSPS)offers a curriculum aimed at providing you with a solid grounding in the leadership skills you need to thrive in the Executive ranks. Details regarding this curriculum can be found on the CSPS website.
A significant portion of the necessary and relevant learning and development available at no-cost to Executives, can be found at the Canada School of Public Service site under Executive Development. To get started, you simply need to set-up or log into your existing GCCampus account.
For additional suggestions and insight regarding establishing your learning plan, consult the APEX Fact Sheet on Learning and Professional Development*.
Contact your Human Resources Department to enquire about organization-specific Executive training that may be offered.
Conflict of Interest
Public service employees cannot participate in decision making that might benefit themselves or their family members. Any employee who finds that they are in a situation of actual or perceived conflict of interest should report their concern to their superior. In the core public administration, the Policy on Conflict of Interest and Post-Employment provides direction and measures to assist organizations and public servants in effectively dealing with real, potential and apparent conflict of interest situations which may arise during and after employment in the public service and the Values and Ethics Code for the Public Service describes the values and expected behaviours that guide public servants in all activities related to their professional duties.
If you are employed by a Separate Agency, you should contact your Human Resources Department to obtain a copy of your organization’s policy and values and ethics code.
Legal Indemnification
The Government of Canada’s Policy on Legal Assistance and Indemnification provides legal assistance and compensation to Crown employees and matters greatly for the protection of the Crown’s interest, the fair treatment of its employees, and the effective management of an organization.
Crown employees may require appropriate legal representation and protection from personal liability as long as they are not acting against the interests of the Crown. The greater public interest is served by obtaining the full collaboration of Crown employees in testifying in legal proceedings including parliamentary proceedings, commissions of inquiry, inquests or other similar proceedings. The Policy on Legal Assistance and Indemnification is intended to encourage such collaboration.
Legal assistance or indemnification requests for the following matters are ineligible under the policy:
- matters arising while the requestor was engaged under a contract for services, with the exception of ministers’ exempt staff;
- an action or claim initiated by a Crown servant unless it forms part of a legitimate defence to a legal claim, action or charge for which legal assistance was approved under this policy;
- an internal investigation (e.g., labour relations or harassment complaint) or an internal administrative recourse mechanism including grievances, staffing or disciplinary proceedings; and
- activities undertaken/carried out by a volunteer.
You are encouraged to review the Government of Canada-prepared frequently asked questions and answers regarding the Policy on Legal Assistance and Indemnification.
Recourse Mechanisms
Subject |
Mechanism |
Labour relations grievance |
|
Harassment complaint |
|
Human rights complaint |
|
Official languages complaint |
|
Staffing complaint |
|
Violence in the workplace complaint |
|
Refusing dangerous work |
|
Prior to filing a complaint for any of the reasons listed above, you are encouraged to contact your Human Resources Department to better understand any organizational policy or process.
Go to Section Two: Managing My Team*