The federal government has dismissed proposals for a raise of $28,000 to $36,000 for federal judges put forward by an independent body responsible for judicial compensation. In its response made public on Monday, the government expressed disagreement with the findings of the Judicial Compensation and Benefits Commission, citing the current Canadian financial situation as a reason for not justifying the raises at this moment.
The decision was announced just before Prime Minister Mark Carney’s government was set to present its inaugural budget, which is anticipated to reveal a significant deficit. Currently, federal judges earn a minimum of $396,700 annually.
The rejection by the Department of Justice was in response to the recommendations outlined in the 7th Judicial Compensation and Benefits Commission report released on July 11. Factors such as U.S. tariffs’ impact and the necessity to fulfill Canada’s NATO defense spending commitment were highlighted as reasons for the decision.
The commission’s July report proposed an increase of $28,000 in judicial salaries, excluding statutory indexing, and suggested raising associate judge salaries from 80% to 95% of puisne judge salaries.
The government emphasized that judges receive yearly salary increments based on the Industrial Aggregate Index and asserted that judicial salaries are sufficient. It conveyed that judicial salary increases are not feasible during a time of extensive expenditure review, which may result in potential public sector job reductions.
Although the commission’s recommendations are non-binding, it plays a crucial role in determining the salaries of judges serving on superior courts, the Federal Court, and the Supreme Court of Canada. Established in the late 1990s to uphold judicial independence, the commission operates independently to ensure fair compensation for federally appointed judges every four years.
The government disputed the commission’s assertion that judicial salaries pose challenges in attracting qualified candidates from the private sector to the bench. It contended that judicial vacancies were affected by factors such as the 2021 federal election and that vacancies had decreased below historical averages by early 2025. The government also noted that judicial salaries have consistently outpaced the cost of living and are projected to continue increasing over the next four years.