CAF Compensation Phase Two: Key information for members

January 27, 2026 - Defence Stories

Estimated read time - 2:00

On August 8, 2025, the Canadian Armed Forces (CAF) announced new pay and benefits to better support members. The changes will occur in three phases; phase one details were announced in early October. Phase two introduces three new initiatives: Instructor Allowance, Critical Occupation Recruitment Allowance, and Mobility Allowance. Updates on the remaining compensation and benefits initiatives will be communicated as soon as possible.

Instructor Allowance

The CAF will be introducing an allowance for instructors and training support staff at certain recruit and entry-level training establishments.

The Instructor Allowance is intended for those personnel assigned to instruct at a designated unit whose primary function is the delivery of basic military and basic military officer qualifications (BMQand BMOQ), initial occupation training, or environmental training linked to the first developmental period (DP1).

Critical Occupation Recruitment Allowance

The CAF met its overall recruiting target last year but still faces critical shortages in key occupations. To attract the right talent into these roles, the CAF will offer allowances at enrolment and at key points early in their career.

Effective November 1, 2025, the Critical Occupation Recruitment Allowance applies to new recruits in Non-Commissioned Member trades where trained strength is below 76% of authorized levels. It is not retroactive. Payments occur in three parts: upon completion of basic training, upon achieving trade qualification, and after six years of service with a commitment to serve an additional three years. For the current list of critical occupations, visit Life in the Forces.

Mobility Allowance

When a CAF Regular Force member is posted, or required to relocate, a range of benefits are available to support the member and their family throughout the experience.

Effective April 1, 2026, the Mobility Allowance replaces the Posting Allowance for Regular Force members. Members will receive $13,500 for each of their first three moves, $20,250 for moves four to six, and $27,000 for moves beyond six. Members on imposed restriction (IR)will receive half of the new allowance, given the other IR benefits being provided. The legacy policy remains for members posted with a Change of Strength date prior to April 1, 2026. Service couples moving together each receive 50% of the individual allowance. Reserve members keep the $2,000 Reserve Relocation Allowance for full-time service moves.

Additional information and support

The CAF continues aligning compensation policies with operational requirements. Members can access financial planning through SISIP Financial.

For more details, visit Improvements to compensation and benefits for the Canadian Armed Forces or contact your Chain of Command.