Effective: April 24, 2018
Applicable FAM Policies: 740 - Honoraria
Applicability: GNWT Departments and Public Agencies

This interpretation provides guidance on the types and payment of honoraria to members of boards as established by Executive Council and to individuals who are appointed or authorized by ministerial, executive or legislative authority.

All payment of honoraria must be processed through an approved payroll system and should reasonably coincide with the next scheduled pay cycle. All honoraria payments are considered taxable income and subject to federal and territorial governments’ source deduction requirements in accordance with NWT and Canada income legislation.

INTERPRETATION

A. Honoraria – Board

Classification

All GNWT public boards shall be classified by the Executive Council as: a) Advisory b) Management c) Regulatory/Quasi-Judicial d) Corporate.

The Minister responsible may appoint members to a board where that authority has been specified in the legislation or policy. In most instances, the Executive Council or Commissioner must approve appointment and changes to responsibility levels in accordance with the Boards Policy. Temporary Boards, duration that does not generally exceed one (1) year, shall be treated under the advisory category unless their remuneration is specifically addressed under separate legislation or approved by Executive Council.

Honoraria Rates

Advisory Board:

• Chair – up to $300 per day
• Member – up to $250 per day
• Chair and members - 50% per half-day (i.e., 3.5 hours or less), for work on board business for each day of meetings.

Management Board:

• Chair – up to $350 per day
• Member – up to $300 per day
• Chair and members - 50% per half-day (i.e., 3.5 hours or less), for work on board business for each day of meetings.

Regulatory/Quasi-Judicial Board:

• Chair - up to $400 per day
• Member – up to $325 per day
• Chair and members – 50% per half-day (i.e., 3.5 hours or less), for work on board business for each day of meetings.

Corporate Board:

• Chair - up to $500 per day
• Member - up to $400 per day
• Chair and members – 50% per half-day (i.e., 3.5 hours or less), for work on board business for each day of meetings.

The following factors shall be considered in setting the honoraria for Board Members:

• daily payroll cost for equivalent work done by staff;
• normal daily hours of sitting per meeting (i.e., full day, half day, evening, etc.);
• level of accountability and key areas of impact and risk assessment in accordance with the GNWT Third Party Accountability Framework; and,
• degree of autonomy

B. Honoraria – Individual

Departments and Public Boards should consider contracting whenever possible, with individuals solely for their services that are being requested; in which case, only a T4A form is required to be submitted to Canada Revenue Agency (CRA) and the individual to report payments made to the contractor.

Payment of honoraria shall only be made for time spent on official business, which is requested by ministerial, executive or legislative authority. Official business includes travel, preparation time, etc., as authorized on a case-by-case basis by a person with appropriate financial signing authority. Official business expenses are to be reimbursed according to the GNWT duty travel allowances and limits. An honorarium should not be provided for the attendance at conferences, conventions or certain cultural events or services unless approved by the Minister or Deputy Head.

Payment Rates

• up to $250 per day; or,
• 50% per half day (i.e., 3.5 hours or less) worked on official business

The following factors shall be considered in setting the honoraria for Individual Appointees:

• nature of the service;
• complexity of the tasks to be performed; and,
• amount of time spent on official business