Merit Pay: Transition to a common April 1 anniversary date

New hires (hired on or after June 10, 2024)

Going forward, employees who start between April 1 and December 31 of each year will have their merit increases prorated based on the portion of the twelve (12) month work cycle worked between their hire date and the following March 31. See Example 1: Petra below.

New employees who start between January 1 and March 31 of each year will not be eligible for a merit increase until the following April 1, but will have their merit increases calculated based on the number of months worked since they began employment. See Example 2: Sanjay below.

Example 1: Petra

• Petra is a new hire who started work on July 1, 2024.
• She will receive her merit pay effective April 1, 2025, based on her performance between July 1, 2024 and March 31 2025.
• This merit pay will be prorated to nine months of service. 
• If Petra’s merit pay was assessed at 3% or these nine months, it will be prorated to 2.25%.
  • 9 months of service being assessed / 12 months of the year x 3% merit = 2.25%
• Her next merit date will be April 1, 2026, based on 12 months of service.

Example 2: Sanjay

• Sanjay is a new hire who started work on February 1, 2025.
• They will receive their merit pay effective April 1, 2026, based on their performance between February 1, 2025 and March 31, 2026.
• This merit pay will be prorated to 14 months of service.
• If Sanjay’s merit pay was assessed at 3% for these 14 months, it will be prorated to 3.5%.
  • 14 months of service being assessed /12 months of the year x 3% merit = 3.5%
• Their next merit date will be April 1, 2027, based on 12 months of service.

Current employees

There will be a transition period for existing employees from June 10, 2024 to March 31, 2025. During this time, existing employees will be eligible for a merit increase on their anniversary date and their next eligibility will be April 1, 2025, prorated based on the portion of the 12-month work cycle between their anniversary date and March 31, 2025.

For employees with an anniversary date between April 1, 2024 and December 31, 2024, a new assessment will be completed to determine the prorated April 1, 2025 merit increase. See Example 3: Paul below.

For employees with an anniversary date between January 1, 2025 and March 31, 2025, the prorated merit increase will be based on the most recent assessment. See Example 4: Asha below.

These changes are compensation neutral for current employees, but they do increase cash flow, as a prorated merit increase will be received in less than twelve months during the transition period.

Example 3: Paul

• Paul is a current employee with a July 1 anniversary date.
• He will receive his merit pay effective July 1, 2024, based on his performance for 12 months of service. 
• Paul’s next merit pay will be effective April 1, 2025, based on his performance between July 1, 2024 and March 31 2025.
• This merit pay will be prorated to nine months of service. 
• If his merit pay was assessed at 3% for these 9 months, it will be prorated to 2.25%.
  • 9 months of service being assessed / 12 months of the year x 3% merit = 2.25%
• Paul’s next merit date would be April 1, 2026, based on 12 months of service.

Example 4: Asha

• Asha is a current employee with a February 1 anniversary date.
• She will receive her merit pay on February 1, 2025, based on her performance for 12 months of service. 
• Asha’s next merit pay will be April 1, 2025 (two months later), using the same assessed performance as for February 1, 2025.
• This merit pay will be prorated to two months of service.  
• If her merit pay was assessed at 3% for these two months, it will be prorated to 0.5%.
  • 2 months of service being assessed / 12 months of the year x 3% merit = 0.5%
• Asha’s next merit date would be April 1, 2026, based on 12 months of service.

These changes to merit increase anniversary dates will be discussed in detail at the upcoming PHO Collective Agreement meetings. In the meantime, if you have any questions, please contact Matthew Hill at hill@amapceo.on.ca.