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Canada Finalizes Plan for 20% Military Pay Hikes, Expanded Forces and Arctic Upgrades

Pay hikes, record recruitment, expanded force targets underpin Ottawa’s bid to secure the Arctic against mounting strategic challenges.

Chief of Defence Staff General Jennie Carignan gestures during an interview in Calgary, Saturday, July 5, 2025. THE CANADIAN PRESS/Jeff McIntosh

Overview

  • Defence planners will roll out nearly 20% pay raises for Canadian Armed Forces personnel this fall, with allowances tailored to rank and high-demand trades.
  • The CAF surpassed its recruitment goal by 2,000 this year—the first time in a decade it has exceeded targets—with women making up 18% of new enlistees.
  • Ottawa aims to grow regular forces to 71,500 members and reserves to 30,000 under a decade-long expansion of core military capabilities.
  • New funding will support additional Arctic radar bases and sensor networks designed to detect threats and enable rapid deployment of jets or ships.
  • These measures mark the start of Canada’s implementation phase for its NATO-backed pledge to raise defence spending to 5% of GDP by 2035.