Canada's largest public service union has narrowly endorsed a new contract that will get rid of severance pay for employees who quit or retire.

The deal with the Public Service Alliance of Canada gives employees a 5.3 per cent raise over three years. The contract also eliminates severance pay for bureaucrats who voluntarily leave their jobs.

Nationally, 52 per cent of the membership voted in favour of the new deal. Approval ranged from a low of 52 per cent to a high of 60 per cent.