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Phoenix pay errors continue to haunt public service a decade after launch

  • Catherine Morrison

  • Canadian Press

  • March 3, 2026

Members of the Public Service Alliance of Canada affected by the Phoenix Pay System rally on Laurier Avenue, during a protest on the three year anniversary of the launch of the pay system, in Ottawa on Thursday, Feb. 28, 2019. THE CANADIAN PRESS/Justin Tang

OTTAWA -- Errors stemming from the federal government's Phoenix pay system continue to plague thousands of public servants, 10 years after the system's launch.

Karine Chawla, who works for Transport Canada, says she is being told she still owes $35,000 in overpayments dating back to 2017.

Chawla says most of the money owed dates from prior to the six-year limitation period for overpayment recovery and the total includes sums she has already paid.

She also says she was warned in June that more unpaid Phoenix bills are coming her way, leaving her feeling unsettled and trapped.

Taxpayers have spent about $5 billion to launch and fixing the Phoenix system, which has paid some federal public servants incorrectly and sometimes not at all.

Ottawa announced last year it had awarded a ten-year, $350.6 million contract to the system's replacement Dayforce and implementation is set to begin in 2027.

This report by The Canadian Press was first published March 3, 2026.