Prime Minister Mark Carney announced pay increases for all Canadian Armed Forces members on Thursday, marking what officials call the largest raise for military personnel in a generation.
The pay increases take effect retroactively from April 1, 2025, and will give colonels and above an 8 per cent raise, lieutenant-colonels and below a 13 per cent increase, and new privates in the Regular Force a 20 per cent boost in starting pay.
“The women and men of our Canadian Armed Forces make Canada strong, and today we are investing in that strength. 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,” said Carney.
New benefits tied to service time
The government will also introduce a Military Service Pay benefit linked to years of service. Additional compensation measures will roll out over the next 12 months, including support for frequent moves, family separation allowances, and extra pay for combat training and disaster response duties.
The raises affect Regular Force and Reserve Force members, including Canadian Rangers and the Cadet Organizations Administration and Training Service, along with their families.
“We have seen, time and time again, no matter the situation, no matter the danger, the Canadian Armed Forces will always answer the call. Our Forces members are second to none, and they deserve a pay raise to recognize their service in defending Canadians and asserting our sovereignty,” said Defence Minister David J. McGuinty.
Part of broader defence spending push
The announcement comes as Canada works to meet NATO’s target of spending 2 per cent of GDP on defence this year. The country plans to invest 5 per cent of annual GDP in defence by 2035, including 3.5 per cent on core military capabilities and 1.5 per cent on infrastructure like airports, ports and emergency systems.
Canada’s defence budget for 2025-26 will exceed $9 billion, officials said. The spending aims to modernize military equipment, build up Canada’s defence industry and create jobs in aerospace, cybersecurity and artificial intelligence sectors.
Chief of the Defence Staff General Jennie Carignan said the enhanced compensation will help with recruitment and retention challenges.
“Enhanced compensation and benefits will help lower the impact of military lifestyle on military families, bring some financial stability to our members, and incentivize Canadians and permanent residents to serve our country,” said Carignan.
The Canadian Armed Forces currently has openings for more than 100 full- and part-time positions across various occupations.
