Carney announces pay raises for the Canadian Armed Forces

Prime Minister Mark Carney announced that all Canadian Armed Forces members will receive a pay raise. This is the largest pay raise for the Canadian Armed Forces members in a generation.

These new measures will include:

• Increases on top of base pay, retroactive to April 1, 2025. This increase will result in an 8% raise for colonels and above, a 13% raise for lieutenant-colonels and below, and a 20% increase in starting pay for privates in the Regular Force.

• A new Military Service Pay benefit, specifically tied to time in service.

• Additional compensation initiatives to be rolled out over the next 12 months, including support for frequent moves and separation from families to help attract and retain the best instructors at training schools, raises to help CAF members training for combat, and additional pay for CAF members who serve in natural disasters.

This is part of the strategic investments to meet NATO’s 2% defence spending target this year and invest 5% of annual GDP in defence by 2035.

The federal government has a plan which includes modernizing military equipment, building up Canada’s defence industry, diversifying international partnerships, and investing in dual-use infrastructure – such as airports, ports, telecom, and emergency systems – that support both defence and civilian readiness.