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Overview
The Public Sector Employers Act (PSEA) was amended in December 2023 with the Public Sector Employers Amendment Act. These amendments authorize the President of Treasury Board and Minister of Finance to issue directives regarding compensation for public sector employers.
On July 28, 2025, the Non-Union Compensation Plan Order was issued for non-executive compensation. Under this Order, public sector employers are required to the develop and submit a compensation plan that outlines how they are adhering to the prescribed limits and conditions:
Until a public sector employer has an approved Compensation Plan, the employer will remain subject to limits and conditions set out in the following Transition Directives:
Ministerial Order 49-2023
Ministerial Order 50-2023
The Provincial Bargaining and Compensation Office (PBCO) administers government compensation policies. For assistance, email: [email protected].
Non-Executive Compensation
The framework for non-executive compensation is established by the Non-Union Compensation Plan Order, Ministerial Order 31/2025 issued under the Public Sector Employers Act (PSEA):
Non-Union Compensation Plan Order
This Order came into effect July 28, 2025, for employers as defined under the PSEA and prescribed in Appendix A, Public Agencies In-Scope Employers of the Order.
An employer’s compensation plan governs how total compensation is provided by the employer to their non-union employees. Upon government approval, the compensation plan is a legally binding compensation standard that cannot be altered or amended without Minister’s approval.
The Public Sector Non-Union Compensation Framework under Ministerial Order 31/2025 will establish fair and equitable common market rates for numerous positions within Alberta’s Public Sector. The goal of the framework is to balance government’s fiscal oversight role with public sector employers’ ability to manage their operations, and to be responsive to changes in the market and other economic conditions.
Employers should target to develop and submit a compensation plan to government for approval by June 30, 2026 (1 year from launch) or earlier. It is recognized that some employers may require additional time in developing their initial compensation plans due to changing mandates or potential changes to their compensation structures. If you have questions or require an extension, please contact [email protected].
Executive Compensation
The framework for executive compensation is in development. Until the framework is complete, please continue to follow the guidelines set out in Ministerial Order 49/2023 and Ministerial Order 50/2023.
Annual Directive
As part of government’s commitment to ensuring that the compensation framework is responsive to changes in the market and other economic conditions, the President of Treasury Board and Minister of Finance will continue to issue Annual Directives to address permitted range and in-range increases.
The 2025/26 annual directive on range and in-range increases is detailed in Ministerial Order 16-2025.
RABCCA Transition Directive
Public sector employers are required to adhere to the compensation regulations and/or processes under the Reform of Agencies, Boards and Commissions Compensation Act until a Compensation Plan is approved.
Reform of Agencies, Boards and Commissions Compensation Regulation (RABCCA Regulation)
Under Ministerial Order 49/2023, until a public agency has an approved Compensation Plan, it will remain subject to limits and conditions set out in:
Reform of Agencies, Boards and Commissions (Post-secondary Institutions - PSIs) Compensation Regulation
Under Ministerial Order 50/2023, until a post-secondary institution has an approved Compensation Plan, it will remain subject to limits and conditions set out in:
- PSI Compensation Regulation
- PSI Compensation Regulation Ministerial Guidelines
- Ministerial Order 07-2024
- Ministerial Order 24-2022
Exemptions
The exemptions issued under the Reform of Agencies, Boards and Commissions Compensation Act (RABCCA) and the Transition Directives shall remain in effect until such time as their respective organizations have an approved compensation plan for all the respective incumbents covered by the exemption, at which point, the exemption will be rescinded.
Ministerial Orders