Canada Raises Armed Forces Pay Up to 20% in Largest Boost in Generation

Canada is significantly increasing compensation for members of the Canadian Armed Forces (CAF) as part of a broader effort to rebuild and invest in its military capabilities. Prime Minister Mark Carney announced pay raises including a 20% increase for regular force privates, raising their starting annual salary from $43,368 to $52,044, and a 13% increase for reservists and mid-ranking officers. Additionally, a new pensionable Military Service Pay benefit will provide annual lump sum payments based on years of service, ranging from $2,000 for five to ten years of service to $6,000 for over 21 years. The government is also introducing bonuses for deployments related to natural disasters and Arctic missions, as well as targeted recruitment allowances for critical occupations. These pay increases and benefits aim to address personnel shortages, improve recruitment and retention, and fulfill Canada's commitment to meet NATO's defense spending target of 2% of GDP. This investment follows a plan to boost Canadian defense spending by $9.3 billion to modernize the armed forces and strengthen international commitments.