If you’ve ever found yourself eyeing a Government of Canada job and thinking, “That salary looks pretty sweet,” you’re not imagining things. A recent study has confirmed what many Canadians have long suspected: public sector workers in Canada aren’t just earning more — they’re enjoying a whole suite of better benefits and greater job security than their private sector counterparts.
Let’s break down what this new data means, and why it matters for both job seekers and taxpayers.
Table of Contents
The Wage Gap: Government Workers Earn More — Even After Adjustments
A new report released by the Fraser Institute analyzed comprehensive salary data across the country, using Statistics Canada information. The study didn’t just compare raw numbers — it adjusted for key factors like:
- Age
- Education
- Work experience
- Job role
Even after making those fair adjustments, the result was clear: in 2024, public sector employees still earned 4.8% more on average than workers doing similar jobs in the private sector.
That seemingly small percentage can translate into thousands of dollars annually for the same work — a difference that adds up fast over a career.
The Gap Without Adjustments Is Even More Striking
While the adjusted numbers are significant, the unadjusted figures tell an even more dramatic story. When comparing the raw average salaries, the study found that:
- Public sector workers earned 26.1% more than private sector employees in 2024.
That’s more than five times the adjusted wage premium — and it paints a stark picture of the financial advantages that come with working for the government.
Benefits Blowout: How Public Sector Workers Come Out Ahead
The wage gap isn’t the only area where government employees are winning. The Fraser Institute’s report also highlights how non-wage benefits in the public sector leave private sector packages in the dust.
Pension Plans: A Massive Divide
One of the most dramatic differences is in pension coverage:
- 87% of public sector workers had a registered pension plan in 2024.
- Only 22% of private sector employees had the same.
And it gets even more unequal from there. Among those with pensions:
- 91% of government employees had defined-benefit pensions — which guarantee income for life after retirement.
- Just 41% of private sector workers had this type of pension.
That’s not just a better deal — it’s long-term financial security.
Job Security and Time Off: Another Advantage
Government employees also enjoyed better job security and more personal time:
- Public sector workers retired 2.2 years earlier on average.
- They were five times less likely to be laid off.
- Only 0.6% of government employees lost their jobs in 2024.
- Compared to 3.2% in the private sector.
When it comes to time off:
- Full-time government workers took 15.7 personal days on average.
- Private sector workers took only 9.3 days — over a week less.
Why This Matters for Canada’s Budget and Job Market
The Fraser Institute warns that the wage and benefit gaps could be creating long-term financial strain for Canadian governments already facing serious fiscal challenges.
A Costly Imbalance
Jake Fuss, the report’s co-author, puts it plainly:
“Closing the compensation gap between the government and private sectors would reduce costs and help governments move towards balancing their budgets.”
With about 4.5 million Canadians — nearly one in five workers — employed in the public sector, even a small difference in pay and perks can balloon into billions in extra government spending.
Is the Private Sector Falling Behind?
Beyond budget concerns, the report raises another critical question: is the private sector keeping up?
In today’s tight job market, workers are increasingly looking for:
- Stability
- Stronger benefits
- Better work-life balance
If the private sector wants to attract and retain top talent, it may need to reconsider how competitive its compensation packages really are.
Final Takeaway: Government Jobs Pay More — And It’s Not Even Close
Whether you’re:
- Considering a move into the public sector
- Trying to make sense of how your tax dollars are spent
- Or just curious about pay equity across Canada
One thing is clear: Government jobs in Canada pay more, offer better benefits, and provide greater job security than comparable positions in the private sector. And according to this study, it’s not even a close race.