A recent internal report from the Defense Department, obtained by CBC News, criticized the new performance-based pay structure for military pilots. The report highlighted flaws in the implementation of the system, leading to some officers rejecting promotions due to financial setbacks.
Initiated five years ago by air force officials in response to a 2018 auditor general’s report on pilot shortages, the new pay system mirrors the civilian model of increasing pay based on flying experience rather than rank. This move has sparked 85 internal grievances from pilots who view it as inequitable and career-hindering.
The aim of the pilot pay restructuring was to enhance pilot retention by aligning military pay with commercial airline standards, as stated in an evaluation dated April 2025. The issue of pilot retention is crucial, particularly with the impending arrival of the new F-35 fleet, as highlighted in a recent auditor general report.
The system compensates pilots based on their expertise and experience, offering incentives for skill development and long-term service. However, the report pointed out unintended consequences, such as some pilots earning more than higher-ranking officers, leading to resistance to promotions and a surge in grievances.
The report criticized the implementation of the new pay structure, citing a lack of research and planning. It highlighted discrepancies with practices in allied nations and emphasized the need for a well-defined methodology and documentation.
Despite these challenges, Defense Minister David McGuinty and Air Force Commander Lt.-Gen. Jamie Speiser-Blanchet expressed support for the pay incentives, noting their positive impact on recruiting efforts. Former air force major-general Charles (Duff) Sullivan emphasized that retention issues extend beyond monetary compensation to factors like quality of life in remote postings.
While commercial airline pilots in Canada can earn significantly more than military pilots, the Defense Department clarified that the broader military pay increase announced last summer is distinct from the pilot bonus system.