# 2025-035 Pay and Benefits, Environmental Allowances, Pay

Case summary

F&R Date: 2026-01-05

The grievor contested the Canadian Armed Forces (CAF) decision to incorporate the Aircrew Allowance into the base pay rates for Pilots, while excluding all other Royal Canadian Air Force (RCAF) occupations in receipt of this allowance. 

The Director General Compensation and Benefits, acting as the Initial Authority, rejected the grievance finding that the submission failed to identify a decision, act or omission in the administration of the affairs of the Canadian Forces for which the grievor was personally aggrieved and that grievances cannot be jointly submitted. 

The Committee noted that section 35 of the National Defence Act provides that the Treasury Board (TB) has authority over the rates and conditions of issue of pay for CAF members, as well as over payments that may be made to them by way of allowances for conditions arising out of their service. Furthermore, TB's authority is exercised, in part, by way of the Compensation and Benefits Instructions for the Canadian Forces (CBI). Therefore, while the CAF provide advice, ultimately it is TB which exercises the authority through the issuance of the related CBI. The Committee remarked that qualified Pilots do not receive Aircrew Allowance as a pensionable allowance. Instead, their eligibility for the allowance was eliminated in favour of a higher base pay. The Committee noted that this decision was entirely within the TB's authority. The Committee found that TB, in deciding to eliminate eligibility for the Aircrew Allowance and include exposure to the environmental conditions associated with flying operations as a factor in establishing the base salary for the Pilot occupation, acted within its authority to implement changes aimed at enhancing attraction and retention of Pilots to sustain the RCAF's operational readiness and effectiveness. 

The Committee found that the grievor was not aggrieved by this decision and recommended that the Final Authority not afford the grievor redress.