What is the Income Replacement Benefit?
The Income Replacement Benefit is a Veterans Affairs Canada program that tops up your income to 90 percent of your indexed pre-release military salary when a service-related health problem creates a barrier to suitable employment.
How is IRB eligibility decided?
Rather than a fixed rating threshold, IRB depends on a determination that a service-related condition causes a diminished earning capacity, meaning a barrier to re-establishment in civilian life. Vocational rehabilitation participation is often part of the process.
Is the Income Replacement Benefit taxable?
Yes. Unlike tax-free Pain and Suffering Compensation, the Income Replacement Benefit is treated as taxable income because it replaces employment earnings.
How does IRB differ from US TDIU?
US TDIU is a rating-based benefit paid at the 100 percent rate when disabilities prevent gainful work. Canada instead tops your income up to 90 percent of pre-release salary and is income-tested rather than rating-threshold based.