The Defence Force says a $45 million pay boost will help increase staff morale and combat attrition.
Most personnel can expect a pay rise of about 5% - the first general rise for four years.
The increase applies to 8500 regular force members, about 2200 reserves and more than 2500 civilians.
The Vice-Chief of Defence, Rear Admiral Jack Steer, told Radio New Zealand's Morning Report programme on Tuesday 90% of personnel will get a pay rise.
He says the Defence Force has raised the money to pay for this with internal reorganisation.