What is the Income Replacement Benefit?
The Income Replacement Benefit is a Veterans Affairs Canada program that provides monthly income support by topping your income up to 90 percent of your indexed pre-release military salary when a service-related condition affects your ability to work.
Is there a minimum salary used?
Yes. A minimum salary floor applies so that lower-paid members are not disadvantaged. The benefit is calculated on the greater of your actual indexed salary and the applicable minimum, then reduced by other income.
Is the Income Replacement Benefit taxable?
Yes. Because it replaces employment earnings, the Income Replacement Benefit is taxable, unlike the tax-free Pain and Suffering Compensation and Critical Injury Benefit.
How does this differ from the US Veterans Pension?
The US Veterans Pension is a needs-based benefit for low-income wartime veterans set against a fixed maximum rate. Canada instead ties income support to a percentage of your former military salary.