A recently implemented pay structure for military pilots aimed at retaining them within the armed forces instead of transitioning to commercial airlines has faced criticism for its flawed design and negative impact on officer promotions, according to an internal report from the Defence Department obtained by CBC News.
The changes were initiated five years ago by air force leadership in response to a 2018 auditor general report highlighting severe shortages of trained pilots and technicians hindering the Royal Canadian Air Force’s ability to meet operational commitments to NORAD and NATO.
This new pay system mirrors the civilian model of increasing pay based on flying experience, regardless of promotions, leading to 85 internal complaints from pilots who view it as unjust and career-restricting.
The objective of the pilot pay restructuring was to enhance pilot retention by aligning their compensation more closely with the commercial airline industry, as outlined in an internal assessment of military retention efforts dated April 2025.
The issue of pilot retention is crucial due to concerns raised by the auditor general in a recent report, warning of insufficient trained fighter pilots upon the arrival of the new F-35 fleet.
As of late 2025, a captain-level RCAF pilot with a decade of service can anticipate a base salary of around $122,532 per year, excluding bonuses and other benefits. In contrast, experienced commercial pilots can earn up to $350,000 annually with top airlines.
The implementation of the new pay system lacked thorough research and planning, deviating from the practices of allied nations grappling with similar retention challenges. The absence of a well-documented process led to operational difficulties, including minimal documentation and vague submission to the federal Treasury Board for funding approval.
Despite criticisms, Defence Minister David McGuinty and Air Force Commander Lt.-Gen. Jamie Speiser-Blanchet have defended the pay incentives as beneficial for recruitment and retention efforts within the RCAF. However, former air force major-general Charles (Duff) Sullivan raised concerns about the system’s effectiveness, highlighting non-monetary factors like quality of life in remote postings as crucial for pilot retention.
The pay increase for military personnel announced last summer is separate from the pilot bonus scheme, emphasizing the ongoing challenges in aligning military compensation with commercial standards.