The Impact of the Mediator’s Recommended Terms of Settlement on Teachers’ Pay
The Mediator’s Recommended Terms of Settlement, ratified on June 10, 2022, provides for a 0.5 per cent increase to teacher pay upon ratification. This increase for the month of June should be calculated according to the following formula:
1/200 of annual salary × 0.5% × the number of operational days
from June 10 to 30, 2022 = increase to June pay
Using a $90,000 annual salary base,
[($90,000/200) × 0.005] × 14 = $31.5 gross increase to June pay
Note that the increase only applies to earnings after the date of ratification. Consequently, as summer pay is based on the withholding of earnings during the operational calendar, teachers will not notice a significant change in their summer pay with only a slight margin based on the increase to pay in June for the remaining operational days worked after June 10, 2022. Find out more about how summer pay is calculated here.
While the settlement included 0.5 per cent upon ratification, teachers will see another 1.25 per cent on September 1, 2022, and a final 2 per cent on September 1, 2023. Each increase compounds upon the previous one.
For example, a teacher with a $90,000 salary earns $90,450 effective June 10, 2022. On September 1, 2022, this salary increases to $91,580.63, and on September 1, 2023, it increases to $93,412.24.
A teacher’s annual salary (found in the collective agreement) is based on years of education (as determined by Teacher Qualifications Service) and years of experience (also in the collective agreement).
Teachers are advised to check their pay information every month. This is particularly important after the scheduled increases in the grid rate. At the beginning of each school year, ensure that your education and experience are accurate, especially as you are “climbing the grid,” and that your annual salary is correct (check your collective agreement). Review the deductions and ensure that they are correct. Teachers may not receive back-pay if paid incorrectly. However, if overpaid, teachers are expected to repay the school division.
Every subsequent month, review any changes to your net pay. Do not forget that there will be an increase in your net pay in the latter half of the calendar year as you reach maximum annual deductions for the Canada Pension Plan (CPP) and employment insurance (EI). This also means that you will see a reduction in pay in January as CPP and EI are deducted from your salary again.
The Mediator’s Recommended Terms of Settlement, ratified on June 10, 2022, improved all teachers’ salaries. Check your pay statement carefully to ensure that your salary reflects the settlement increases. #WEAREATA