The Nova Scotia government says it has agreed to pay public sector employees an estimated $470 million in compensation over legislation introduced in 2015 to restrict their wages.

Nova Scotia’s Minister of Finance, John Lohr said the government has reflected the cost of this settlement in its 2025-26 budget.

The government was ordered to compensate public sector employees after provincial Supreme Court Justice Ann Smith ruled in February that Bill 148 substantially interfered with the rights of several unions in the province.

Justice Smith must sign-off on the proposed remedy before it can go into effect.

The former Liberal government introduced Bill 148 in December 2015.

The legislation was enacted in 2017 and imposed wage restrictions for almost all public servants over a four-year period and eliminated awards for long-term service.

A lawyer for the Nova Scotia Justice Department says the remedy will see an estimated 81,000 public servants receive payouts to compensate for an infringement of their Charter rights that occurred as a result of Bill 148.