From pay to pay, employee earnings are reduced close to 50% due to taxes and services that we pay into as legislated by the Canadian Government. As these services go a long way to help out our fellow Canadians when they are in need, my wonder is this new proposal going too far.

The conservative government has decided to mainline the private and public sector pay by withholding four percent of payroll for public sector employees in the 2014. The process would work as follows; employees would receive a regular paycheck for the first payday of January 2014, but the next 24 paychecks would be reduced until two weeks of pay have been collected by the government. If the employee were to quit or be terminated, the money would be returned to the employee, but only in this circumstance.

This has created a huge debate with Unions as they were not consulted and are prepared to fight back if the government decides to implement this new system.

The main concern is for those employees who live paycheck to paycheck. This creates a tight situation for those in the lower income bracket when they are already feeling the pinch.

The big question is “why”. Why would the government propose such a plan? Like everyone my guess would be to bring down the deficit, but at a great cost for lower income citizens.

To read more, please see the link below.

Stephanie Nadeau / Payroll Administrator / PEO Canada