With the support of all parties in the legislature, the Ontario government is introducing new legislation to adjust compensation for Members of Provincial Parliament (MPP), including by re-introducing pension benefits.
According to a news release from the Ontario government, MPP salaries in Ontario have been frozen since 2009, ($116,500) resulting in compensation levels that lag behind those of comparable elected representatives, including many city councillors in the province. For 2025, a City of Toronto Councillor’s salary is set out as $170,588.60 and the Mayor of Toronto’s salary is set out as $231,635.04.
The new legislation proposes changes to the Legislative Assembly Act to end this freeze, raising the base salary for MPPs to 75 per cent of the compensation (sessional allowance) of federal Members of Parliament (MPs). 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.
Premier Doug Ford’s salary will increase from $208,974 to $282,129 while cabinet ministers will see their salaries hiked from $165,851 to $223,909. The Leader of the Official Opposition will now be paid $244,207, up from $180,866.
The government is also proposing a new defined benefit pension plan for MPPs, integrated with the Public Service Pension Plan (PSPP). This plan would replace the current retirement savings arrangement, providing MPPs with a robust and secure retirement benefit. If passed, MPPs will be able to access their full pension benefits after six years of service, starting at the conclusion of the current session of provincial Parliament.
The new pension plan for MPPs would be integrated with the Public Service Pension Plan (PSPP). MPPs would join the PSPP on the same terms as other members, plus receive an additional supplementary pension benefit. This new arrangement would replace the current retirement savings plan, which provides a contribution of 10 per cent of salary.
The new pension plan would take effect on January 1, 2026, and would include a supplemental benefit for MPPs who serve at least six years.
