Canada announces $2 billion investment in military salaries

As wildfires plague Canada, Prime Minister Mark Carney’s boosted military budget will fund CAF domestic deployments to aid during natural disasters.

Canada will boost the salaries of its soldiers in order to recruit new and retain current members.

Bonuses are also being offered to soldiers who are deployed to fight natural disasters that occur in Canada or are assigned to Arctic missions.

The federal government says these changes are needed to reflect current global challenges.

Prime Minister Mark Carney announced the pay increases on a visit to the country’s largest air base in Trenton, Ont. In his remarks Carney highlighted that soldiers from CFB Trenton participated in the recent air drops of aid in Gaza

Carney noted in prepared remarks that the world had become a more dangerous place, and Canada was vulnerable.

“Russia is emboldened. China is more assertive. The long-held view that Canada’s geographic location will protect us is archaic,” the prime minister said, standing in front of dozens of soldiers.

“Our Arctic waters are increasingly open and there have been rapid advances in cyber, artificial intelligence, quantum and advanced missile capabilities.”

As of June 30, the Canadian Armed Forces (CAF) is short 6,534 regular force members and needs to hire 6,188 more reservists for a total shortfall of 12,722 soldiers.

Sailors, privates and aviators will get a 20 per cent increase in pay. For a private, that equates to an additional $723 each month and translates into a $52,044 annually.

Reservists will receive a smaller pay increase of 13 per cent.

Commanders and lieutenant colonels will also see a 13 per cent increase in salaries. While those with the rank of colonel, Navy captain and above will see an eight per cent raise.

The raises will be retroactive to April 1, the start of the government’s fiscal year.

The new pay increases are part of the $9.3 billion in new military investment Prime Minister Mark Carney announced on June 9 to bring Canada’s defence spending within reach of the two per cent NATO target by the end of this fiscal year.

Senior military officials, speaking to reporters on background, said the pay increases account for $2 billion of the $9.3 billion.

CAF members who are deployed to assist Canadians during natural disasters such as wildfires and floods will receive an additional $45 a day. Officers deployed in the Arctic on land duty will get an additional 50 per cent top-up, while those patrolling on sea duty will see a 25 per cent increase in their allowance.

Soldiers deployed on foreign missions in the field or on the sea will also get an additional flat rate bonus of $100 a day instead of a pro-rated monthly allowance.

The CAF is also offering retention bonuses of $10,000 or $20,000 at key points in a soldier’s career, such as the completion of basic training or when they become qualified in a trade.

Members who are recruited to a training school will receive an additional $300-a-month allowance, while instructors will get an additional $35 a day.

The government is also improving how CAF members are paid when they are required to relocate. This compensation will now be calculated based on the number of moves, not on the soldier’s pay scale.

Soldiers will be paid $13,500 for the first three moves, $20,050 for moves four to six and $27,000 for relocating seven times or more.

Chief of Defence Staff Gen. Jennie Carignan said the pay enhancements should help Canada reach a full-strength complement of troops before 2030.

Carignan said that 7,600 people were recruited so far this year, which is about 1,000 more recruits than the previous year.

“With this momentum we have-- by April (2029) we should be back up to full strength,” Carignan said during a scrum with reporters.

While the total investment is an approximately 20 per cent overall boost in salary, it falls short of Defence Minister David McGuinty’s June comments, in which he suggested it was time for a 20 per cent pay hike for all military personnel.

When asked why across-the-board raises weren’t implemented, a senior defence official speaking on background said that a more targeted approach was needed.

“This investment reaches areas where it can have the greatest impact in terms of morale, retention and operational readiness,” the official said.