RESEARCH · BILL 124
Bill 124: what the 1% cap did to Ontario nursing.
Bill 124 capped public-sector wages — including nurses' — at 1% per year from 2019 to 2022 in Ontario. It was struck down as unconstitutional in November 2022; the Ford government's appeal was lost in February 2024. The reopener arbitration awarded 0.75% (2020) + 1.0% (2021) + 2.0% (2022). RNAO's Political Action Bulletin (November 2024) calls those increases 'not nearly enough' to restore real-wage purchasing power.
The timeline
| Dimension | Bill 124 cap (2019–2022) | Post-strike-down (2022–2026) |
|---|---|---|
| Wage cap on Ontario nurses | 1% per year, three years | Reopener: 0.75% / 1.0% / 2.0% (2020–2022) |
| RNAO assessment | Cap created 'drastic reduction in real income' | Reopener increase 'not nearly enough' |
| Workforce signal (CIHI 2024) | Cap years coincided with rising vacancies | 6.4% non-renewal in 2024 — highest exit rate on record |
| Court status | Bill 124 enacted 2019 | Struck down Nov 2022; Ford appeal lost Feb 2024 |
Source figures
BACKGROUND — CBC 2024
15,000h
of Ontario ER closures in 2024 — nursing shortages caused 85% of them
Closed doors are the visible end of an invisible shortage.
BACKGROUND — CIHI 2024
6.4%
of nurses didn't come back — the highest exit rate CIHI has recorded
BACKGROUND — FIQ 2025
+844%
growth in vacant nursing positions in Quebec — 1,160 (2016) to 10,955 (2023)
BACKGROUND — BC Government / NPR 2026
1,028
American nurses approved for licensure in BC since April 2025 — up from 127 the year before
BACKGROUND — CIHI 2024
30%
of Canadian nurses are 55 or older — up from ~10% in 2000
BACKGROUND — CIHI 2024
13.3%
of Canada's RN workforce was internationally educated in 2024 — and IENs drove 68% of net RN growth
BACKGROUND — CFNU/CIHI 2024
$1.5B
spent on for-profit nursing agencies in 2023-24 — six times more than four years earlier
Frequently asked
- What was Bill 124?
- The Protecting a Sustainable Public Sector for Future Generations Act — Ontario's 2019 wage-cap law. It limited compensation increases for public-sector employees (including hospital nurses) to 1% per year for three years.
- Did Bill 124 cause the Ontario nursing exodus?
- Causally hard to isolate — RNAO and ONA argue the wage compression was a major contributor; the Ford government has argued vacancies have multiple drivers. CIHI 2024 records 6.4% non-renewal nationally, the highest exit rate on record, and Ontario's RN-per-population ratio is the worst in Canada (ONA 2025 brief).
- Was Bill 124 unconstitutional?
- Yes — November 2022 Ontario Superior Court ruling. The Ford government appealed and lost in February 2024.