Carney Announces Largest Pay Raise in a Generation for Canadian Armed Forces
New measures include retroactive salary increases, service-based pay, and compensation for deployments
TRENTON, ON — Prime Minister Mark Carney announced a major pay raise for the Canadian Armed Forces (CAF) during a visit to Trenton, Ontario, outlining a comprehensive compensation package aimed at strengthening military readiness, boosting recruitment and retention, and recognizing the growing demands placed on those who serve.
The initiative marks the largest pay increase for CAF members in a generation, and is part of Canada’s broader $9 billion defence investment plan for 2025–26. The plan supports military readiness, NATO commitments, and the modernization of Canadian defence infrastructure and equipment.
Retroactive Raises and New Military Service Pay
Effective retroactive to April 1, 2025, the new pay structure will deliver:
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An 8% raise for colonels and above
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A 13% raise for lieutenant-colonels and below
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A 20% increase in starting pay for privates in the Regular Force
CAF members will also begin receiving a new Military Service Pay benefit, tied directly to years of service, recognizing long-term dedication in uniform.
Additional compensation initiatives to be rolled out over the next year include:
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Incentives for service during natural disasters
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Pay increases for those training for combat
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Financial support for frequent relocations and separation from families
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Incentives for retaining experienced instructors at training schools
These measures apply to Regular Force and Reserve members, including Canadian Rangers and those in the Cadet Organizations Administration and Training Service.
The women and men of the Canadian Armed Forces are getting a raise. pic.twitter.com/axt4Efn7Po
— Mark Carney (@MarkJCarney) August 8, 2025
Strategic Defence Investment and NATO Commitment
The announcement builds on Canada’s recently stated goal of reaching 2% of GDP in defence spending in 2025, with a broader pledge to invest 5% of GDP in defence by 2035. That includes:
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3.5% toward core military capabilities
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1.5% toward dual-use infrastructure like ports, telecom, and emergency systems
These investments are expected to stimulate Canadian innovation, strengthen the domestic defence and aerospace industry, and create high-paying jobs in areas like cybersecurity and AI.
Leadership Voices
“The women and men of our Canadian Armed Forces make Canada strong, and today we are investing in that strength,” said Prime Minister Carney. “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.”
Defence Minister David J. McGuinty echoed the sentiment, noting the CAF’s readiness to respond “no matter the situation, no matter the danger.”
Chief of the Defence Staff General Jennie Carignan welcomed the announcement, emphasizing that improved compensation will “bring financial stability” to military families and help attract and retain qualified Canadians to serve.
Looking Ahead
The federal government confirmed that more than 100 full- and part-time military occupations are currently open across Canada. Canadians and permanent residents are encouraged to explore opportunities to serve at Forces.ca.
Details on upcoming compensation initiatives will be shared over the next 12 months.
📎 Related Link: PMO – Improvements to CAF Compensation and Benefits
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