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 &#8220;a critical shortage&#8221; of personnel, and on Aug. 8, the <a href="https://www.canada.ca/en/department-national-defence/news/2025/08/improvements-to-compensation-and-benefits-for-the-canadian-armed-forces.html" target="_blank">Department of National Defence announced</a> that CAF members will receive a &#8220;significant, pensionable&#8221; pay raise. And the best part? The raise will be retroactive to April 1, 2025.
&#8220;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,&#8221; stated <a href="https://www.pm.gc.ca/en/news/news-releases/2025/08/08/prime-minister-carney-announces-pay-raises-canadian-armed" target="_blank">Prime Minister Mark Carney</a>.
<h2>A bigger pay bump</h2>
<div id="attachment_2177220" style="width: 2058px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2177220" class="size-full wp-image-2177220" src="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2029456061.jpg" alt="caf pay raise" width="2048" height="1456" srcset="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2029456061.jpg 2048w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2029456061-500x355.jpg 500w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2029456061-1024x728.jpg 1024w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2029456061-1536x1092.jpg 1536w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2029456061-1200x853.jpg 1200w" sizes="auto, (max-width: 2048px) 100vw, 2048px" />Bumble Dee/Shutterstock</div>
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).
<h2>Other benefits</h2>
<div id="attachment_2177225" style="width: 2058px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2177225" class="size-full wp-image-2177225" src="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2401733527.jpg" alt="caf pay raise" width="2048" height="1507" srcset="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2401733527.jpg 2048w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2401733527-500x368.jpg 500w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2401733527-1024x754.jpg 1024w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2401733527-1536x1130.jpg 1536w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/08/shutterstock_2401733527-1200x883.jpg 1200w" sizes="auto, (max-width: 2048px) 100vw, 2048px" />Andrew Angelov/Shutterstock</div>
It&#8217;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 &#8220;reduce the financial burden of frequently moving.&#8221; Currently, that moving allowance is equal to a month&#8217;s pay for families or half a month&#8217;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.
&#8220;Our Forces members are second to none, and they deserve a pay raise to recognize their service in defending Canadians and asserting our sovereignty,&#8221; stated David J. McGuinty, the minister of national defence.
Currently, the CAF is recruiting for over <a href="https://forces.ca/en/" target="_blank">100 full-time and part-time roles</a>.
Canada has committed over nine billion to help strengthen CAF&#8217;s &#8220;capabilities and readiness.&#8221; Doing so will also help the country reach NATO&#8217;s two per cent defence benchmark spending this year.
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Members of the Canadian Armed Forces (CAF) are getting a pretty substantial pay raise, according to the government.