CALGARY — The Liberal government has cut the allowances for Canadian Armed Forces (CAF) troops stationed abroad by $1,000 to $1,500 per month.In a March 25 notice sent to the Ottawa Citizen by military personnel, it shows the troops were given only a week’s notice, leaving them scrambling before the new government directive was set to take effect on April 1.Cuts to the Post Living Allowance (PLA) come from federal revisions to the Post Index (PI) — the metric used to calculate the benefit, which is determined by Statistics Canada in coordination with the Treasury Board Secretariat.The PLA is a tax-free allowance intended to help CAF members serving overseas in higher-cost locations.“Members are strongly encouraged to plan their finances accordingly, particularly in locations where the PI has decreased or where PLA entitlement may cease,” the March 25 memo stated.In an emailed statement to the Citizen, Alice Hansen, director of communications for Defence Minister David McGuinty, said, “our government delivered the most significant update to military compensation and benefits in decades.”“As Canada rebuilds, rearms and reinvests in the Canadian Armed Forces, we will do so with our people at the forefront,” she added..Canadian Armed Forces to receive $2 billion retroactive pay hike as Carney works to meet NATO pledge.A large portion of the PLA reductions affect soldiers posted in the US, with personnel in Latvia and other European countries also seeing cuts.CAF members posted to the US have voiced particular frustration at the cuts, citing rising consumer costs south of the border.However, in some cases, the allowance will increase.Less than a year ago, Prime Minister Mark Carney drew praise from military personnel after announcing pay increases aimed at improving recruitment and retention.The increases ranged from 20% for lower ranks to 8% for senior officers.The starting salary for a regular force private, for example, rose from $43,368 annually to $52,044, while reserve members received a 13% increase.Personnel up to the rank of lieutenant-colonel received a 13% increase, while colonels and generals saw an 8% boost.The compensation package also included a new annual lump-sum payment based on years of service and enrolment date, with reserve members receiving a smaller amount.Some personnel say they are still waiting for those lump-sum payments.Under the plan, members with five to 10 years of service receive $2,000 annually, while those with 21 years or more receive $6,000.The final package differed from earlier messaging by McGuinty, who told reporters in June 2025 that the 20% increase would apply across the board.News of the cuts comes as Carney’s government recently pledged $120 million in humanitarian assistance to Sudan, which is entering the fourth year of a brutal civil war, prompting critics to question where the Liberals’ priorities lie..James Bezan, Conservative MP for Selkirk—Interlake—Eastman, posted on X that, “In typical Liberal fashion, the government gave a pay raise to our troops with one hand, but is now clawing it back with the other by reducing the post-living allowance for forces deployed out of country by up to $1,500 per paycheque.”“The Minister of National Defence should be fighting for CAF members, not penalizing them when they are leaving their loved ones for months at a time.”.Another Conservative MP, Scott Anderson (Vernon—Lake Country—Monashee), who is also a veteran, took the Liberals to task, saying, “This government can’t claim to support our military while quietly taking money out of the pockets of frontline personnel.”“Our troops and their families deserve stability, respect, and support. I will continue to stand up for those who serve our country,” Anderson said.“The headlines scream about increased military pay, but why are so many frontline soldiers deployed overseas actually being forced to take a pay cut?”
