Integrated strategy for human resources and pay: Answers to your questions
Integrated strategy for human resources and pay
Answers to your questions
You asked, we answered. Since June 2025, we have collected questions from the employee event sessions. All of the questions and answers are presented here. This includes questions we could not answer during the sessions.
Public Services and Procurement Canada (PSPC) updates this page every 3 months. We add new questions and update existing answers to ensure content is current before each quarterly human resources (HR) and pay update event.
Last updated: August 2026
Timelines and costs
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Q1. When will Dayforce roll out?
A1. We are finishing the design and build phase of the Dayforce HR and pay system. We will start rollout with the following 3 organizations:
- PSPC
- Shared Services Canada (SSC)
- Canadian Nuclear Safety Commission (CNSC)
We started testing with real employee data in June 2026, meeting all privacy, security and policy requirements. Our goal is to fully move these 3 organizations to Dayforce in 2027.
Other organizations will onboard in later waves. This phased approach allows us to apply lessons learned and reduce risk.
Organizations will inform their employees about changes closer to the launch date. You can also join our user awareness sessions to learn more. Sign up on PSPC's Eventbrite page.
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Q2. Where can I see the costs and progress for HR and pay modernization, including Dayforce?
A2. As of March 31, 2025, the Government of Canada has paid Dayforce Canada Limited $151 million (taxes included). Since the contract began in September 2021, we have spent $297 million (taxes included) of the $350 million total contract value (taxes included).
The Government of Canada maintains a publicly accessible site for its integrated strategy for human resources and pay. It tracks and reports progress on key commitments for current operations and transformation initiatives. This includes quarterly progress reports, which show annual cost for replacing Phoenix and several HR systems with the Dayforce platform.
We are rolling out Dayforce in phases. This helps reduce risk and improve reliability, efficiency and the employee experience. The following reports detail our approach:
While we prepare Dayforce, we keep improving HR and pay services in current systems. Our focus is to pay employees accurately and resolve existing pay issues.
These documents show that the work is moving forward as planned, within approved timelines and budget. They also demonstrate that we are using a phased approach to reduce risk and support long‑term success.
Development and testing
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Q3. What gaps were identified during Dayforce testing? How are you preventing negative impacts on employees during rollout?
A3. Testing and feasibility showed that some areas need more work before rollout. We are lowering risk and preparing for a smooth transition by focusing on:
- Ensuring that Dayforce meets HR and pay needs across government
- Making HR processes more consistent
- Improving data quality so each employee has one accurate profile
- Setting up Dayforce to handle many collective agreements and pay rules
We are also:
- Running payroll tests in Dayforce and comparing results with Phoenix
- Tracking risks and fixing issues as they come up
- Testing standardized HR processes to reduce errors
- Involving organizations and employees in readiness activities
- Collecting feedback early to identify problems
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Q4. Did the Human Capital Management Feasibility Study cover shift work, field work and other less common situations? Will there be more testing?
A4. Yes. The Human Capital Management Feasibility Study tested Dayforce for:
- shift work
- employees with multiple roles
- remote work
- field work
The study assessed whether Dayforce could replace the Government of Canada's (GC) current pay system and many HR systems. It used five criteria:
- ability to meet federal requirements
- operational readiness
- onboarding feasibility
- full‑lifecycle costing
- simplification of the operating model
The project also included design work, testing, validation and costing to confirm the feasibility of implementation across the GC.
Processes, systems and training
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Q5. Are HR processes being simplified and made consistent across government? What is the timeline?
A5. Yes. The Government of Canada is introducing standard HR processes in phases. Since 2023, the Office of the Chief Human Resources Officer (OCHRO), PSPC and organizations have worked together to:
- make HR and pay practices more consistent and timely
- improve compliance with rules
This work includes:
- Timeliness standards for 20 HR transactions
- The goal is to complete transactions on time 80% of the time
- The government-wide average improved by about 10% since 2022
- Clearer guidance on leave codes (medical/dental leave; traditional Indigenous practices leave)
- Guidance for short‑term EX acting appointments to improve consistency
- Clearer roles for the Chief Human Resources Officer
- Onboarding 58 organizations to MyGCHR (the interim enterprise HR system)
- Mandatory training courses: HR-to-Pay for Managers (COR137) and HR-to-Pay for Employees (FON308)
- More than 38,000 employees have completed the training to date, with many reporting that it improved their knowledge and understanding
- Work with bargaining agents to update the Directive on Union Dues to clarify dues, arrears, refunds and other provisions
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Q6. How will you ensure a smooth transition to Dayforce? Will there be training and other measures to prepare compensation advisors?
A6. We are using a phased plan to make sure organizations are ready before moving to Dayforce. The plan focuses on early engagement, change management and training. We only move to the next phase once organizations are ready. This approach reflects lessons learned from the Phoenix pay system.
Key measures include:- Testing key HR-to-pay functions that affect employee pay
- Running pay in Dayforce and Phoenix at the same time to confirm accuracy
- Holding user awareness sessions and using feedback to improve the system
- Providing training so employees, managers and compensation advisors are ready
- Setting clear roles and responsibilities through memorandums of understanding
We have learned from past challenges. That is why we are involving organizations early and making sure compensation advisors, managers and employees have the tools, training and support they need to move to Dayforce.
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Q7. How will you ensure Dayforce connects smoothly with HR, finance, pension, and other systems?
A7. Dayforce will replace many existing HR and pay systems. It must also work well with other government systems. We are using a clear, structured approach to connect systems.
This approach includes:- Using a central method to manage how information moves between Dayforce and other systems
- Sharing data only through secure and approved methods, without direct access to databases
- Building and testing system connections in steps, with full testing starting in 2026–2027
- Prioritizing the most important interfaces that support employee pay, such as pensions, financial reporting, union deductions, and payment processing, to help ensure employees are paid accurately and on time when Dayforce launches
- Following government rules to protect data, privacy and security
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Q8. How confident is the Government in using artificial intelligence for HR and pay? What safeguards are in place?
A8. We use artificial intelligence (AI) to support operations. The Artificial Intelligence Virtual Assistant (AIVA) helps automate routine tasks for compensation advisors. This allows them to focus on backlogs and more complex cases. As a result, service can be faster and more accurate.
Strong safeguards are in place, including:- Keeping human oversight at every step
- Requiring compensation advisors to review and approve each case
- Following existing operational procedures
- Meeting Government of Canada rules for responsible AI, including privacy and security
The AIVA also follows Government of Canada AI directives and responsible AI practices, including the Directive on Automated Decision-Making. This directive applies to automated systems used in production that support administrative decisions or client-related assessments. It requires safeguards such as an Algorithmic Impact Assessment, peer reviews and GBA Plus. These steps help ensure openness, accountability and respect for privacy and security from design through deployment.
More information about the AIVA is available on the Open Government Portal, where details are shared as part of our commitment to transparency.
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Q9. Will there be an HR and pay forum for professionals to discuss modernization?
A9. Yes. Heads of HR are engaged routinely through the Human Resources Council, project governance and outreach. HR and pay professionals and administrators also represented in the development of the project's change management strategy with planned engagement, training and execution supports tailored to their needs.
HR professionals play an important role in the HR and pay transformation. We hold workshops and engagement activities so they can share their expertise and help shape the future HR and pay system. The project also offers ways for executive to share feedback as well as a concierge function to guide organizations and HR and pay professionals through onboarding activities.
HR and pay professionals take part in:
- readiness activities
- consultations
- feedback channels
- reviewing future‑state HR and pay processes
- user awareness sessions
- sharing operational insights and highlighting potential impacts
- viewing demonstrations of the Dayforce solution
These activities help ensure HR professionals are involved early and often. Their input supports the design of a modern, user‑centred HR and pay experience for the Government of Canada.
Existing pay issues
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Q10. How will PSPC handle existing pay cases during the move to Dayforce?
A10. PSPC will continue to fix pay issues in Phoenix while getting ready for Dayforce. Keeping current operations stable is a top priority. We have plans in place to reduce the backlog of pay cases before and during the move to the new system.
For updates on this work, you can visit the Public Service Pay Centre dashboard. It is updated every month and includes data such as:
- the number of transactions ready to be processed
- how transactions are grouped by service standards
- how many transactions have been received and processed
Protecting employees
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Q11. How will you reduce the risk of pay problems for employees during the transition?
A11. We are applying lessons learned from Phoenix. Our approach uses careful planning, phased onboarding, strong change management (including training) and strong safeguards.
Key steps include:
- Phased onboarding of organizations with targeted support
- Rigorous testing and configuration to cover simple and complex HR and pay cases
- Parallel pay runs with Phoenix to confirm accuracy before full launch
- Focused backlog reduction to improve data quality before onboarding
- Employee engagement and feedback to spot and fix issues early
These steps help protect employees and reduce the risk of pay issues during the transition.
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Q12. How will personal information be kept secure, and how is Canadian data sovereignty protected (for example, regarding the U.S. CLOUD Act)?
A12. The Government of Canada signed a contract with Dayforce Canada Limited through a transparent procurement process. The Dayforce solution is hosted in Canada. Staff working on the contract must have Canadian security clearances (or equivalent). The data is securely stored in Canada.
Dayforce must meet Canadian privacy laws and follow strict contract and security rules. We also carry out regular security reviews and work with cyber and privacy experts across government.
These measures also include:
- Contract clauses that enforce Canadian privacy laws
- Encryption, strict access controls and monitoring to prevent unauthorized disclosure
- Cooperation on security and privacy with the Canadian Centre for Cyber Security, Shared Services Canada and the Treasury Board Secretariat
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Q13. Will organizations still have access to historical employee data after moving to Dayforce?
A13. Yes. Historical data will be available. The Government of Canada is building a centralized data hub with one single employee profile for each employee. It will keep HR and pay information together across an employee's career. The information will remain available even after older systems are no longer used.
Service delivery
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Q14. How will the Client Contact Centre (CCC) and the Pay Centre change during the transition to Dayforce?
A14. The work being done through pilot projects and ongoing improvements to pay processes and tools is helping shape how pay and employee support services will operate in the future. This includes services provided through the Pay Centre and the CCC.
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Q15. What are pay pods? Will they continue during modernization?
A15. Pay pods are dedicated teams that support specific organizations. The pay pod model was first tested in 2017 and expanded across organizations served by the Pay Centre in 2019.
The goal was to improve collaboration, process pay transactions faster and reduce backlogs by helping compensation advisors and assistants build knowledge of the department they support. Pay pods are the Pay Centre's current way of delivering services.
Work is now underway to test and design a future service delivery model as part of the overall Transformation project. The current testing will support recommendations around the future model, which is expected to shift towards centralized systems, automation and standardized processes.
