Market Adjustment Policy

1.0        Policy Statement
2.0        Application
3.0        Definitions
4.0        Responsibilities
5.0        Duration
6.0        Implementation
7.0        Approval
8.0       General Economic Increases
9.0       Employee Moving to a New Position in the Organization
10.0    Employee Leaving Organization
11.0    Review and Reporting

1.0    Policy Statement

1.1 Market Adjustments may be approved to address recruitment and retention challenges for officially classified positions that meet the criteria for a market-based adjustment as established by Treasury Board, subject to the approval process as outlined in the Guidelines to Determine, Implement and Evaluate Market Adjustments (Market Adjustment Guidelines).
1.2 Departments, Agencies, Boards and Commissions are prohibited from paying employees any other form of market adjustment outside the terms of this policy. Additional forms of remuneration, unrelated to market conditions, may be permitted, subject to Treasury Board approval.

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2.0    Application

2.1 This policy applies to employees of Government Departments, Agencies, Boards and Commissions (ABCs) in Treasury Board officially classified positions. Eligible positions for the market adjustment may be permanent, temporary, part-time, or seasonal and include bargaining unit and management employees. For employees who are members of a bargaining unit please refer to the relevant section of the collective agreement since the policy may be limited in its application. This policy shall not apply to Executive positions within Government Departments, Agencies, Boards, and Commissions.

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3.0    Definitions

Market Adjustment Any form of pensionable remuneration, as approved by the Employer, paid to employees of Government departments, agencies, boards and commissions to address recruitment and retention challenges in exceptional circumstances.
Employee A person employed by a department, agency, board or commission for the purpose of performing certain specified work.
Employer As per the Financial Administration Act, the Employer is the Treasury Board, a committee of the Executive Council responsible for all matters relating to the personnel management in the public service and of a public body.
Executive Position A position that:

  • is subject to the Executive Compensation Policy and Procedures Manual;
  • is filled by Order of the Lieutenant Governor in Council; or
  • is deemed to be an Executive position of a board, agency or commission, as determined by Legislation or other recognized authority.
Officially Classified Position A position that has been assigned a classification or pay level using a Treasury Board approved job evaluation methodology and rating process.
Labour Market The availability of labour market data within the public and/or private sector (if a publicly funded comparable position is not available). A labour market can be defined within a specific geographic area that contains comparator positions. The labour market for each position may vary.

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4.0    Responsibilities
4.1 Departments, Agencies, Boards and Commissions

  • Ensure that market adjustments are only requested in exceptional situations.
  • Demonstrate to the Employer that:
    • Non remuneration-based strategies have been employed without success;
    • the duties and responsibilities of the position are of critical importance to the operational effectiveness of the organization; and
    • the duties and responsibilities of the position cannot be performed through other means (e.g. duties and responsibilities cannot be performed by another employee, assigned to an existing position).
  • Ensure all requests for market adjustments are in accordance with the Market Adjustment Guidelines, including the following:
    • Departments and ABCs to include confirmation of classification rating(s) for officially classified position(s) for which a market adjustment is being requested;
    • recruitment history;
    • vacancy rate;
    • current and relevant regional labour market data;
    • cost estimates of implementation as well as how the market adjustment will be funded; and
    • A plan for a broader recruitment strategy to eliminate the need for the market adjustment.
  • Ensure that proposals for market adjustments incorporate a review process, normally conducted on an annual basis.
  • Notify affected employees of approved market adjustments and that the Employer retains the right to continue, modify, or discontinue future market adjustments.
  • Notify affected employees as soon as possible of the decision to modify or remove a market adjustment.
4.2 Treasury Board Secretariat

  • Provide Treasury Board with an analysis of requests for market adjustments.
  • Monitor market adjustments, including trends, overall costs, and effectiveness.
  • Prepare reports for Treasury Board on the status of approved market adjustments.
  • Conduct audits, as appropriate.
  • As part of the review process, the TBS may engage private consultants to provide any information it deems essential to complete its analysis.

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5.0    Duration

5.1 The duration of any market adjustment shall be as approved by Treasury Board. Approved market adjustments are to be reviewed as per the duration as approved by Treasury Board, with results of the review reported to Treasury Board.

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6.0    Implementation

6.1 An employee will be entitled to receive a market adjustment in the form of pensionable payment(s). Payments will be made during the period of approval as authorized by the Employer. Payments for part-time arrangements shall be pro-rated accordingly.
6.2 If the payment is pre-paid (paid at the beginning of the period of approval), the employee will be required to sign a contract of service for that period of approval.
6.3 Payments shall not be incorporated into an employee’s regular salary; however, may be made in a lump sum, bi-annually or bi-weekly manner. The Employer may consider exceptions to the method of payment if circumstances warrant.
6.4 Once approved, the employing organization shall pay the adjustment at the earliest possible date provided a return-in-service agreement has been finalized for a pre-paid benefit.

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7.0    Approval

7.1 The Employer shall have final authority over any form of market adjustment and when the adjustment is to be paid.
7.2 Upon approval of a market adjustment, employees will be notified that the Employer retains the right to continue, modify or discontinue future market adjustments.

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8.0    General Economic Increases

8.1 Market adjustments shall not be subject to general economic increases (GEI’s) awarded by Government.

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9.0    Employee Moving to New Position in the Organization

9.1 When an employee transfers to another position within the same organization that is not eligible for a Treasury Board-approved market adjustment, the market adjustment amount payable will be prorated based on the time the employee worked in the position that qualified for the approved market adjustment.
9.2 When an employee moves to another position within the same organization that is eligible for a Treasury Board-approved market adjustment, the total market adjustment paid will be prorated based on the time worked in each position that qualifies for an approved market adjustment.

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10.0    Employee Leaving Organization

10.1 Pre-Payment
If the method of payment for the approved market adjustment is pre-payment and the employee leaves the organization at any time during the period of approval, the employee will be required to reimburse any monies owing on a proportional basis. Any overpayments shall be recovered by the employing department, agency, board or commission.
10.2 Post-Payment
If the method of payment for the approved market adjustment is post-payment and the employee leaves the organization at any time before the end of the period of approval, the employee will forfeit the remaining prorated amount of the approved market adjustment.

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11. 0    Review and Reporting

11.1 Unless otherwise approved by the Employer, all market adjustments are subject to periodic review by the relevant Deputy Minister or Chief Executive Officer to assess potential continuance as changes in market conditions may warrant the removal or modification of the market adjustment.
11.2 Proposals for market adjustments shall incorporate an evaluation and review process, normally conducted on an annual basis. Deputy Ministers or Chief Executive Officers, are required to provide the results of their review to Treasury Board, including the evidence for their decision to continue, modify, or discontinue a market adjustment, as per the duration noted in the approval of the market adjustment from Treasury Board.
11.3 At any time, the President of Treasury Board may request that the department, agency, board or commission make a resubmission to determine continued eligibility for a market adjustment.

Last Policy Update: March 25, 2026

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