CAF Pay Increase 2025: Clear Breakdown for Military Members

The Government has released full details for the upcoming CAF pay increase, retroactive to April 1, 2025. This is one of the largest raises in years and affects Regular Force and many Reserve categories.

Retroactive to April 1st, 2025

1. How Big Is the Raise?

According to the official release:

• ~20% raise for Regular Force privates (Increment 1)

• ~13% raise for Non-Commissioned Members (most), General Service Officers, pilots up to Lieutenant-Colonel, and all medical/dental/legal officers

• ~8% raise for senior officers (Colonel and above) in certain categories

These increases apply retroactively to April 1, 2025 — meaning back pay will be included.

2. Housing Differential (CFHD) Updated

The Canadian Forces Housing Differential (CFHD) was recalculated effective August 6, 2025 to line up with the new pay raise.

What that means for you:

• Some members will see increases in their housing support

• Some locations may see neutral or even slightly reduced differential amounts

• Expect adjustments based on local cost-of-living changes and new salary levels

CFHD = designed to offset local housing costs during postings. CFHD is not the same as PLD (Post Living Differential).

3. Separation Expense Improvements (Effective Nov 1, 2025)

Three major upgrades were announced:

a) Food Component

• Members in private/commercial accommodation get daily food reimbursement if rations aren’t provided

• Approx $19.51/day

b) Transportation Component

• Travel reimbursement for up to 350 km/month between temporary accommodation and principal residence

• Includes eligible transit passes

c) Miscellaneous Living Expenses

• New $200/month allowance for costs like Internet, cable, minor living expenses

This helps members serving away from family reduce the financial burden.

4. What This Means for Military Families

This pay increase is arriving at a time when housing, food, and transportation costs have been climbing.

For Military families, this means:

• Higher take-home pay (after retroactive adjustment)

• More stable housing support via CFHD revision

• Less financial strain during imposed restrictions, operational demands, and separated postings

• Stronger home-buying potential during relocations or upcoming Posting Notices

If your move is coming up, this increase makes a difference.

5. Planning a Posting or House-Hunting Trip?

RelocatingMilitary.ca exists to make your move easier. Choose your IRP Approved Realtor here.

For Further Benefits and Entitlements: read more here.