‘We're not going to build the future of this province by excluding the people who have the qualifications and have the knowledge to move us forward’
Ontario’s Members of Provincial Parliament (MPPs) will receive their first salary increase in 16 years and regain access to a pension plan, following the swift passage of new legislation supported by all parties in the provincial legislature.
The bill—introduced by Finance Minister Peter Bethlenfalvy—raises the base salary for MPPs from $116,550 to $157,350, which represents 75 per cent of the salary earned by federal Members of Parliament, according to a CBC report. Premier Doug Ford’s salary will increase from approximately $209,000 to $282,000, while cabinet ministers’ pay will rise from about $166,000 to $224,000.
For comparison, in 2025, a City of Toronto councillor's salary is set at $170,588.60, while the Mayor of Toronto earns $231,635.04, according to the provincial government.
"When we're looking for other candidates, qualified people, to actually direct the future of this province, for most of them, they have to take a huge pay cut to come here and give up, in many cases, pensions," said NDP Opposition House Leader John Vanthof in the CBC report.
"We're not going to build the future of this province by excluding the people who have the qualifications and have the knowledge to move us forward. So we're fully in support and I'd like to thank Premier Doug Ford and his government for, quite frankly, having the guts to do this."
MPP salaries in Ontario have been frozen since 2009, leading to compensation levels that trail behind those of comparable elected officials, including many municipal councillors across the province, according to the Ontario government.
"This adjustment has previously been recommended by the Integrity Commissioner and would increase the base salary of MPPs to $157,350 per year, effective the day of the 2025 election. Annual increases will be tied to federal MP salaries, ensuring that MPP compensation remains competitive and reflective of inflation," said the government.
Mike Harris’s government got rid of the pension for MPPs more than two decades ago, noted a TVO report.
“We did it to rebuild trust, because people didn’t trust politicians anymore,” said former Harris adviser Greg Lyle, according to the report.
Wage growth in Ontario has fallen behind the rest of Canada for more than two decades due to prolonged economic stagnation, according to a previous report from the Fraser Institute.
Also, earlier this year, many Canadians officially received a pay bump, but the Canadian Prime Minister and Members of Parliament saw an increase far greater than the average Canadian, according to a report.
Under Bill 34, MPP Pension and Compensation Act, 2025, Ontario legislators will also once again have access to a defined pension plan.
All current and future MPPs will be enrolled in the existing Public Service Pension Plan. Those who serve at least six years during or after the 44th Parliament will also become eligible for additional retirement benefits through a newly established MPP supplemental pension plan.
This supplemental plan mirrors the Public Service Pension Plan and includes measures to ensure benefit stability and equity. Eligible MPPs can begin receiving pensions from age 55, calculated at 3 per cent of their highest average annual salary over 36 consecutive months, multiplied by years of service—up to a maximum of 35 years. The plan also includes inflation adjustments and coordination with the Canada Pension Plan.
Notably, MPPs are not required to contribute to the supplemental pension plan, and any changes to benefits or contribution terms must be approved by the Board of Internal Economy.
This reform replaces the pension scheme abolished in the mid-1990s by then-premier Mike Harris’s government. Since that time, MPPs have had no formal pension plan—a gap that has impacted talent recruitment and retention in provincial politics.
The new pension plan is set to take effect on Jan. 1, 2026, and will include supplemental benefits for MPPs with at least six years of service.
The new legislation spent about 13 minutes from tabling to passage, with representatives from all parties standing shoulder-to-shoulder outside the chamber in rare agreement, according to CBC.
Many Canadians are struggling to save for retirement, according to a previous report from IG Wealth Management.
