Canadian Armed Forces members to get a hefty pay raise

Aug 11 2025, 6:44 pm

Members of the Canadian Armed Forces (CAF) are getting a pretty substantial pay raise as the government increases the budget for salaries and allowances.

The CAF is currently facing what it calls “a critical shortage” of personnel, and on Aug. 8, the Department of National Defence announced that CAF members will receive a “significant, pensionable” pay raise. And the best part? The raise will be retroactive to April 1, 2025.

“With a pay raise for every single CAF member, we are strengthening our military, recognizing their sacrifice, and giving service members the resources, confidence, and certainty they need to serve,” stated Prime Minister Mark Carney.

A bigger pay bump

caf pay raise

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The increased amount that CAF members in the reserve and regular forces receive depends on their ranking.

Captain (Navy)/Colonel and above will see their pay go up by eight per cent. On the other hand, a Commander or Lieutenant-Colonel will get a 13 per cent pay raise.

Lower-ranking members, such as sailors, privates, or aviators, will see the highest pay increase: 20 per cent for the regular force, and 13 per cent for the reserve force. That means, for example, a private with a starting salary of $3,614 a month ($43,368 yearly) will see their pay go up to $4,337 a month ($52,044 yearly).

Other benefits

caf pay raise

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It’s not just the pay raise that CAF members can look forward to.

There will also be a new annual military service pay, a pensionable compensation paid as a lump sum depending on years of service. Regular Force members with five to ten years of experience will get $2,000 annually, and that amount will continue to increase. Members with over 21 years of experience will receive $6,000 each year.

Members required to relocate will also receive a posting frequency allowance to help “reduce the financial burden of frequently moving.” Currently, that moving allowance is equal to a month’s pay for families or half a month’s salary for single members. That benefit will be replaced with $13,500 for each of the first three moves, $20,050 for moves four to six, and $27,000 for subsequent moves.

And since the CAF is struggling with a shortage in certain occupations, new members will be paid $10,000 once they finish basic training, $20,000 once they qualify in trade, and $20,000 upon completion of the first contract, when signing on for another period of service. Instructors and training support staff will also receive an allowance.

“Our Forces members are second to none, and they deserve a pay raise to recognize their service in defending Canadians and asserting our sovereignty,” stated David J. McGuinty, the minister of national defence.

Currently, the CAF is recruiting for over 100 full-time and part-time roles.

Canada has committed over nine billion to help strengthen CAF’s “capabilities and readiness.” Doing so will also help the country reach NATO’s two per cent defence benchmark spending this year.

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