Starting 2023 and your CAF career on a financial high note

February 14, 2023 - Defence Stories

A new year is bringing new Canadian Armed Forces (CAF) Compensation and Benefits (CB) initiatives to the fore.

The CDS has approved two initiatives to aid in recruiting and retention efforts under the CDS/DM Directive for CAF Reconstitution. The first is the remittance of Rations and Quarters (R&Q) for members who have not reached their operationally functional point (OFP - definition below). The second is the accelerated advancement to Private Pay Increment (PI) 2 upon successful completion of the Basic Military Qualification (BMQ) for members serving in 33 priority occupations. These initiatives are aimed at ensuring that CAF members starting their careers are doing so on financial sure-footing.

Effective January 1, 2023, the charges for rations and single quarters will be remitted for members not yet met OFP in their initial Developmental Period 1 (DP1). OFP is the point at which a member has achieved the qualification requirements for first employment in an occupation and is posted off the Basic Training List (BTL) or Subsidized University Training List (SUTL) to a Trained Effective Strength (TES) position. For many/most trades this is completion of their trade training, or phase training.

Members residing in accommodations while attending one of the CAF’s Royal Military Colleges will not qualify for this remit, as their College accommodations are deemed their principal residences.

While monthly payment for rations and single quarters will be remitted for CAF members meeting the above criteria, the Canada Revenue Agency requires that the provision of free “room and board” be a taxable benefit; therefore members will see this on their monthly pay statement and annual T-4.

Also effective this month (from January 1, 2023 until March 31, 2025), all newly enrolled CAF members in one of the below priority occupations who have successfully completed BMQ will receive Pte PI 2 upon graduation.  This initiative is part of efforts to increase recruiting to priority occupations and its results will guide future policy development.

The 33 occupations in the table below were determined to be a “priority” as some are understrength or are at risk of becoming understrength.  Also, the training establishment for all 33 occupations ensures that members reach OFP without delay.

Priority occupations where PI2 pay will be effective immediately after successful BMQ completion.

CAF starting salaries are based on equivalent careers for entry-level positions within the private sector. The benefits of continuous professional development, training, health care and pension from the moment a CAF member enrolls separate the CAF from private sector opportunities.  These two initiatives could provide upwards of an additional $26,000 in a CAF member’s salary in the first two years of service, which is paid by the CAF.  The CAF continually reviews the remuneration and benefits of Regular and Reserve personnel to ensure that military personnel receive fair compensation for their service to Canada. 

If you have any questions, please visit the below websites, or speak to staff at CAF recruiting centres across Canada.

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