Ontario Government Proposes Changes to MPP Compensation and Pension Plan

With support from all parties in the Ontario legislature, the provincial government introduced legislation on May 29, 2025, to change compensation for Members of Provincial Parliament (MPPs). The proposed measures include increasing the base salary for MPPs and re-introducing a defined benefit pension plan, according to an announcement from the Ministry of Finance.

The legislation would end the salary freeze for Ontario MPPs that has been in place since 2009. The government stated the new base salary for MPPs would be set at 75 per cent of the annual pay of a federal Member of Parliament, resulting in a salary of $157,350 per year, effective on the day of the 2025 provincial election. Future salary changes would be tied to increases in federal MP compensation. The government noted that the Integrity Commissioner previously recommended this adjustment.

The proposal also details a new defined benefit pension plan for MPPs. According to the government, this plan would be integrated with the Public Service Pension Plan (PSPP), replacing the current arrangement where MPPs receive an annual retirement savings contribution equal to 10 per cent of their salary. MPPs would join the PSPP on the same terms as other members, with a supplemental pension available for those serving at least six years. The government reported that the new pension plan would take effect on January 1, 2026, with full pension benefits accessible after six years of service for eligible MPPs at the end of the current provincial parliament session.

Government figures indicate that, for 2025, a City of Toronto Councillor's salary is $170,588.60, and the Mayor of Toronto's salary is set at $231,635.04. The government said the MPP compensation changes were designed to bring their pay closer to other elected positions.