The Royal Canadian Air Force (RCAF) is defending its new experience-based pay structure for pilots after internal documents revealed widespread frustration, dozens of formal grievances, and even officers refusing promotions because it would cost them money.
The bonus system, introduced in spring 2021, was designed to address a critical pilot shortage identified by the auditor general in 2018. It aimed to match pay more closely with commercial airlines, rewarding pilots for years of flight experience rather than rank alone.
But according to an internal Defence Department evaluation obtained by CBC News, the plan was “poorly thought out,” lacked documentation, and “deviated from best practices” in allied air forces. The report says the system’s rollout was vague and “unsupported by evidence that higher pay would solve retention problems.”
85 Grievances Filed
The new structure has triggered at least 85 grievances from RCAF pilots who argue it is unfair and demoralizing. Some refuse promotions because advancing in rank would actually reduce their income.
“The potential for a captain to make more than a major results in some pilots refusing promotions,” the report states. “Many of these grievances remain unresolved.”
The RCAF currently operates at 66% staffing for frontline fighter squadrons and 90% overall, leaving the military short-handed as it prepares for the arrival of the new F-35 fleet.
Defence Department Response
The Department of National Defence insists the program is working as intended. It argues that the pay system “aligns pilot compensation with experience and qualifications” and allows those who want to stay in flying roles to be fairly rewarded.
An RCAF captain with 10 years of service now earns about $122,532 annually, excluding bonuses and allowances.
Defence Minister David McGuinty defended the plan, calling it “essential to retention efforts.” He told Parliament last month that the new scale ensures “skills- and competencies-based pay” while Canada continues collaborating with allies facing similar challenges.
RCAF commander Lt.-Gen. Jamie Speiser-Blanchet said the incentives have helped lure some retired pilots back. “Some of that was due to an increase in pilot pay,” he told MPs.
Critics Call It Misguided
Former major-general Duff Sullivan, who reviewed the report, said the system’s flaws were predictable.
“Having a junior officer earning more than a senior officer in the same unit makes no sense,” he said. “It’s a symptom of poor planning. Retention isn’t just about money—it’s about quality of life.”
Sullivan noted that commercial airline pilots can earn over $350,000 annually, making full parity unrealistic. Instead, he said, improving living conditions at remote airbases like Cold Lake, Alta., and Bagotville, Que., would make a greater impact.
Broader Military Strain
The pilot pay controversy comes amid wider personnel shortages across the Canadian Armed Forces. Despite a military-wide pay increase last summer, the Defence Department confirmed that the pilot bonus system remains a separate policy.
As the grievances pile up, the RCAF faces a growing dilemma: how to retain skilled aviators without deepening the rift between those flying Canada’s most advanced aircraft and those leading them.
