ICYMI: We have a new Reserve Pay Structure

Magazine Article / October 4, 2019 / Project number: RCAF-Excelsior-Fall-2019-04

As promised in Canada’s defence policy, Reserve Force pay has been restructured to align with Regular Force pay where the demands of service are similar. The new methodology for the Reserve Force applies the same base pay the Regular Force receives, plus the elements of the Military Factor that apply to reservists.

The restructuring of pay is part of an overall vision outlined in our defence policy, which also includes increasing the Reserve Force by 1,500 members and further integrating reservists into operations.

Reservists will receive more money in this new system in order to more fairly compensate them for their important service. Previously, Reserve Force pay was a simple 85 percent calculation of the total Regular Force pay. Regular Force pay is composed of two parts: base pay and Military Factor. The Military Factor is a percentage added to the base salaries of Canadian Armed Forces members that compensates them for additional requirements that don’t affect most public servants.

“The Reserve Force is an integral component of the Canadian Armed Forces and restructuring pay is just another way of integrating both components into a total force that can deliver on our defence mandate,” said Major-General Rob Roy MacKenzie, Chief of Reserves and Employer Support. “As an organization we are always learning, growing and reviewing our programs and policies to reflect the changes we think are best for CAF, our members and their families. It’s wonderful to see this change because I think it recognizes the operational and professional commitment of the Reserves to the defence of Canada.”

• The Military Factor is calculated using three military and two additional elements. The military considerations are: personal limitation and liability, separation, and posting turbulence. The two additional elements are overtime and acting for supervisors without an increase in pay.
• The Military Factor elements that apply to reservists under the new system are: personal limitation and liability, overtime, and acting for supervisors.
• The change of calculation from 85 percent to a base pay plus Military Factor approach will result in an increase of 7.8 percent. For example, the pay rate for a first year corporal will increase from $140 to $153 a day. Basic pay for a lieutenant “A” will increase from $147.62 to $161.18 a day.
• Reservists on Class A and Class B periods of service are paid on a daily rate, based on their rank and time in that rank. Reservists on Class C periods of service, such as those who deploy on operations, receive the same pay as Regular Force members, which is calculated at a monthly rate.
• Reservists began receiving the new rate by the end-month pay in August 2019. That rate is retroactive to 1 April 2019.