Update on Payment in arrears

In April 2014, the Government of Canada will be implementing payment in arrears for salary payments. The transition to payment in arrears is part of a transformation initiative that will replace the pay system and also streamline and modernize pay processes.

Currently, your pay is calculated and processed two weeks in advance of the work being performed and, therefore, your pay may not reflect changes in a timely manner, such as leave without pay or salary increases. Adopting payment in arrears means that you will be paid for the period that concluded two weeks before the payment is issued. More importantly, it means that your pay will more accurately reflect the actual time worked and thus process changes in your pay in a timelier manner (e.g. salary increase) and reduce the likelihood of any overpayments that would require recovery.

Please note that you will continue to be paid your regular salary every two weeks. When payment in arrears is implemented in April 2014, Public Works and Government Services Canada will make a transition payment in the pay system and from that point forward, your pay statement will indicate the period ending two weeks prior to the issuance of payment.

Since there will be no disruption in your bi-weekly salary payments, you will not be entitled to an additional salary payment two weeks after you have left the public service. However, a final payment will be made to you to take into account the difference between your salary at the time of the transition payment (i.e. April 23, 2014) and your salary on departure, and to reflect any required adjustments.

New employees not on the payroll on March 26, 2014 will be directly placed on payment in arrears and will not receive a transition payment.

Please read the Payment in Arrears – Questions and Answers which explains how this change may impact you.

You can also consult the compensation section on iService for more details on the subject.