A recent internal report from the Defence Department obtained by CBC News criticizes the new performance-based pay structure for military pilots, suggesting it was poorly planned, implemented, and has led to some officers declining promotions due to financial setbacks. The changes were initiated five years ago by senior officials in the air force to address critical shortages of trained pilots and technicians identified in a 2018 auditor general report hindering the Royal Canadian Air Force’s fulfillment of NORAD and NATO commitments.
The revised payment system, modeled after the progressive civilian scheme that increases pay based on flying experience regardless of rank advancements, has sparked 85 internal complaints from pilots who view it as unfair and limiting to their careers. The objective of the pilot pay adjustment was to enhance pilot retention by aligning their compensation with industry standards, as stated in an internal evaluation of military retention efforts dated April 2025.
The retention of pilots is crucial, particularly with the impending arrival of the new F-35 fleet, as highlighted by the auditor general in a recent report underscoring the persistent shortage of qualified fighter pilots. The new pay structure compensates pilots according to their skills and experience, aiming to incentivize skill development and long-term service.
As of late 2025, a captain-ranked RCAF pilot with a decade of service can anticipate a base salary of around $122,532 annually, excluding additional benefits like bonuses and allowances. In comparison, seasoned commercial pilots can earn up to $350,000 annually with leading airlines, surpassing the earnings of top military personnel.
However, despite the intention to align military pilot wages with commercial rates, the new payment system has led to unforeseen consequences, with some captains earning more than majors, causing reluctance among pilots to accept promotions and triggering a series of grievances.
The report also criticized the implementation of the new system, highlighting the lack of thorough research, alternative considerations, and documentation, deviating from practices observed in allied armed forces like the U.S., Australia, and the U.K. It pointed out the absence of evidence supporting the effectiveness of increased compensation in addressing the pilot shortage issue and the absence of a well-defined methodology during the implementation process.
Despite the challenges, Defence Minister David McGuinty and the new air force commander, Lt.-Gen. Jamie Speiser-Blanchet, have defended the pay incentives, noting their positive impact on recruitment efforts and the return of retired pilots to the RCAF. However, former air force major-general Charles (Duff) Sullivan expressed concerns over the lack of strategic thinking behind the pay adjustments, emphasizing that retention in the air force, particularly among fighter pilots, goes beyond monetary considerations and includes factors like quality of life in remote postings.