Raises, retention bonuses promised for Canadian Forces personnel

Prime Minister Mark Carney greets Canadian troops of the 4th Canadian Division as he attends a tour of the Fort York Armoury in Toronto on June 9, 2025. Carney announced Monday that Canada will meet the NATO spending target of two per cent of GDP by the end of this fiscal year. Photo by COLE BURSTON /GETTY IMAGESArticle content

Pay increases for military personnel as well as retention bonuses and increased training allowances for particular Canadian Forces members are to be part of the government’s spending boost for defence.

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In addition, it is expected that around 1,400 new staff will be hired at the Department of National Defence.

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The initiatives were outlined Monday during a technical briefing that followed Prime Minister Mark Carney’s announcement that defence spending was being significantly increased. The Liberal government noted that it was pumping in more funding so Canada will meet the NATO spending target of two per cent of GDP by the end of this fiscal year.

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Carney repeated his election promises to purchase new submarines and other equipment as well as improve military housing and benefits.

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“Members of our armed forces will get a well deserved salary increase, which will contribute to better recruitment and retention of personnel,” Carney said.

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But defence officials at the technical briefing had few answers.

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They did point out that not only will there be pay increases, but in some cases boosts in training allowances and retention bonuses for key military personnel. They did not have information on what specific Canadian Forces jobs or trades would be eligible for bonuses.

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More health-care workers will be hired for the Canadian Forces and the civilian workforce will be expanded so military personnel can focus on operations, government officials said at the technical briefing. Under government-imposed rules, the officials who provided the briefing cannot be identified.

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In January, the Ottawa Citizen reported that military staff were recommending retention bonuses to keep key personnel from leaving the ranks. But there were questions at the time about whether the government would fund such a plan.

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Although the Canadian Forces doesn’t currently have retention bonuses, the military does offer various extra pay or allowances for those in particular jobs or handling specific duties, the Department of National Defence has noted. In addition, the military does provide extra payment to recruit individuals with particular skills.

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Various western militaries, facing personnel shortages, have been using retention bonuses to entice individuals to continue to stay in the ranks.

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On Nov. 22, 2024, the British government announced bonuses equivalent to $54,000 for aircraft engineers who sign up for an additional three years of military service. Privates and lance corporals who have already served four years would be eligible for a new retention bonus, which is the equivalent of $14,000.