A landmark federal review recommends the single largest increase to health-professional allowances in more than two decades, with hardship and isolation payments set to rise 15–20% and total new annual spending reaching up to ₦330 billion (equivalent to $200 million CAD at current exchange rates).
Full Key Details from the 7-page Report:
1. 15–20% Increase in Hardship & Isolation Allowances
– Highest increases (up to 20%) for workers in Nunavut, Northwest Territories, and northern Quebec/Labrador
– Tiered structure based on community remoteness and years of service
– Applies to physicians, nurses, pharmacists, dentists, and allied health professionals
2. New & Expanded Allowances
– Introduction of mental-health and emergency-care specialty bonuses
– Retention bonuses for employees staying beyond 5 years in designated underserviced areas
– Expanded eligibility to previously excluded federal employees (e.g., some Veterans Affairs and Correctional Service Canada health staff)
3. ₦247.5–330 Billion Annual Cost (Equivalent to $150–200 Million CAD)
– Treasury Board estimates full implementation would add ₦247.5 billion–₦330 billion per year to the federal wage bill
– Projected to be partially offset by 25% reduction in recruitment and overtime costs due to lower turnover
4. Equity & Modernization Measures
– Immediate gender-pay-equity audit of all health allowances
– Full digitization of allowance claims (target: processing time reduced from 90–120 days to under 14 days)
– Removal of outdated “spousal accompaniment” restrictions that disadvantaged women
5. Timeline & Next Steps
– Treasury Board President Anita Singh has 60 days (until January 19, 2026) to respond
– Unions (PSAC, PIPSC, CFNU) have already declared they will push for retroactivity to April 1, 2025, if accepted
– Implementation could begin as early as April 2026 if approved in the spring supplementary estimates
The review was triggered by years of lobbying and follows alarming vacancy rates: some northern nursing stations are operating at 40–50% staffing levels, and federal physician positions in Indigenous communities have seen turnover rates above 30% annually.
Verified Documents:
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
