Auditor general to study the modernization of the federal pay system

The Public Service Pay Centre is shown in Miramichi, N.B., on Wednesday, July 27, 2016. THE CANADIAN PRESS/Ron Ward

OTTAWA — The federal government’s troubled attempt to modernize its pay system will be probed by the federal auditor general as the government begins its move to another new payroll program.

Ottawa announced in June it had awarded a 10-year contract to Dayforce for almost $351 million, to replace the Phoenix payroll system that has caused significant problems.

Claire Baudry, a spokesperson for the Office of the Auditor General of Canada, says the report is expected to be tabled in Parliament in 2026.

She says decisions about the scope and timing of the audit have not yet been made.

The Phoenix pay system was introduced in 2009 at an initial cost of $309 million and began processing public servants’ pay in 2016.

Problems with Phoenix began to show up almost immediately, leading to widespread errors on employees’ paycheques and delays in payments.

Catherine Morrison, The Canadian Press

With files from Kyle Duggan

This report by The Canadian Press was first published Aug. 25, 2025.