Leave with income averaging
You may be eligible for a special work arrangement that allows you to take an extended leave without pay (for a minimum of 5 weeks and a maximum of 3 months) while averaging your income over a 12-month period. This income averaging allows you to continue receiving part of your regular salary during your leave without pay.
On this page
Before you apply
Before you apply for leave with income averaging, you must meet these conditions:
- for core employees, you must:
- have indeterminate employment status
- not be surplus at the start of the leave arrangement
- agree not to work for the federal public service while on leave without pay
- agree to respect the measures established in the Values and Ethics Code for the Public Sector while on leave without pay
- for non-core employees, see your manager or human resources advisor for applicable eligibility requirements
- your 12-month work arrangement period must be operationally feasible (in other words, the quality of service or costs associated with service delivery would not be adversely affected)
- your 12-month period of reduced salary must begin on the first day of a pay period (in other words, it must start on a Thursday immediately following a pay day).
Other considerations
You should also consider the following:
Approval
Not all requests are approved. Your manager must thoroughly assess how allowing you to take leave would negatively affect operations, and may deny your request even if you meet the eligibility requirements.
Pension and benefits
While your regular pay is averaged out over a 12-month period, your pension and benefits coverage and most of the corresponding premiums and contributions continue at pre-arrangement levels.
Employment status
Your employment status, either full-time or part-time, remains unchanged during the working arrangement. You also remain covered by your collective agreement and terms and conditions of employment.
Calculating your reduced pay
Use the gross to net calculator (accessible only on the government of Canada network) to calculate your reduced pay during your leave with income averaging.
Taking leave in 2 parts
Core public administration employees have the option of taking leave without pay in 2 parts. Each part must be for at least 5 weeks and the sum of the parts must not exceed 3 months within a 12-month period. Non-core public administration employees should see their manager or human resources advisor for more information.
Cancellation
If your application is approved, cancellation of this special working arrangement is considered only in rare and exceptional circumstances. You must request cancellation in writing with reasonable notice.
For more information, see Appendix D of the Directive on Leave and Special Working Arrangements.
How to apply
To apply for leave with income averaging, complete the following steps:
- complete and sign the application for leave with income averaging
- request approval from your manager
- once approved by your manager, ask your section 34 manager or human resources delegated manager to complete a pay action request (PAR) form
- attach the completed and signed PAR to the completed and signed application
- ensure that your department’s trusted source submits the completed and signed application package to the Pay Centre at least 6 weeks before the start of the 12-month income averaging period
For more information, see the following:
- Why the Pay Centre rejected your pay action request
- Trusted sources and pay action requests
- Appendix D of the Directive on Leave and Special Working Arrangements
You can also contact your manager, human resources advisor or the Pay Centre.
What to expect from the Pay Centre
Once the Pay Centre receives your completed and signed application package:
- a compensation advisor makes the necessary entries in Phoenix and in your departmental Human Resource Management System
- a letter is sent to you outlining the effects on your pay and benefits