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PM Carney announces pay raises for the Canadian Armed Forces

August 8, 2025
Trenton, Ontario

Canada’s new government is rebuilding, rearming, and reinvesting in the Canadian Armed Forces. In June, the Prime Minister, Mark Carney, announced an investment of over $9 billion to support the Canadian Armed Forces with the capabilities and support they need to protect Canadians and uphold our commitments around the world. At the core of our defence investment are the women and men who serve.

The demands on our Canadian Armed Forces (CAF) have only increased in the last thirty years – and their resources and salaries have not kept pace. These are the women and men who uphold Canada’s sovereignty, protect our security, and bolster our international alliances. Their pay should reflect the weight of their responsibilities.

Today, the Prime Minister 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, putting more money in the pockets of everyone who serves. 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, so paycheques also honour the years in uniform.
  • 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.

These increases in pay and incentives will revitalize and transform recruitment and retention efforts, bolster force readiness, and ensure that members in uniform have the confidence and certainty they need to serve.

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. Our plan 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.

As we strengthen the Canadian Armed Forces, we will also build up Canadian industry, driving innovation and creating good careers for Canadian workers and new opportunities for Canadian businesses. Now more than ever, we need to defend our sovereignty and safeguard Canada’s people and interests.

“The women and men of our Canadian Armed Forces make Canada strong, and today we are investing in that strength. 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.” — The Rt. Hon. Mark Carney, Prime Minister of Canada

“We have seen, time and time again, no matter the situation, no matter the danger, the Canadian Armed Forces will always answer the call. Our Forces members are second to none, and they deserve a pay raise to recognize their service in defending Canadians and asserting our sovereignty.” — The Hon. David J. McGuinty, Minister of National Defence

“Recruitment and retention of Canadian Armed Forces members are my top priorities, and I welcome today’s announcement. Enhanced compensation and benefits will help lower the impact of military lifestyle on military families, bring some financial stability to our members, and incentivize Canadians and permanent residents to serve our country. Our military needs well-trained, motivated, and dedicated people to deliver on our mandate to defend Canada and Canadians.” — General Jennie Carignan, Chief of the Defence Staff

Mark Carney
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