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Income Replacement Benefit (IRB)

VACIncome and financial supportTaxable

It's common to feel unsure where to begin.

In one sentence

Who this is usually for

You may wish to explore this program if the following appear relevant: Generally intended for a former CAF member who applies before age 65.

What it may help with

Monthly income support during rehabilitation.
Partial protection against service-related loss of earning capacity.
Possible continuation after rehabilitation where diminished earning capacity is established.

2 min read·Preparation time varies by situationScroll to explore, or reach out if you are unsure

What is this?

The Income Replacement Benefit () is a taxable monthly benefit that helps maintain income while an eligible Veteran participates in the Veterans Affairs Canada () Rehabilitation Services and Vocational Assistance Program. It may continue when determines, before age 65, that a Veteran has a diminished earning capacity. Before age 65, generally calculates a starting amount using 90% of indexed gross pre-release military salary or the applicable minimum threshold, then subtracts prescribed income sources. It is therefore not automatically an extra payment equal to 90% of salary.

Income benefits may interact, offset one another, or require reporting of other income. Personal calculations require the actual policy, income information, and decision letters.

Do not estimate offsets without actual calculation letters.

Why someone might look at this benefit

A service-related physical or mental health problem is making civilian transition difficult.

You are applying for or participating in VAC rehabilitation.

Your ability to work or prepare for suitable employment is affected.

You receive SISIP/CAF LTD, a military pension, CPP/CPP-D or employment income and need to understand interactions.

VAC is considering diminished earning capacity.

Who might qualify?

You may wish to explore this program if the following appear relevant: Generally intended for a former CAF member who applies before age 65. A physical or mental health problem resulting primarily from service must create a barrier to re-establishment. Eligibility is closely connected to approval for rehabilitation. Survivors and dependent children have separate provisions in defined circumstances. Only Veterans Affairs Canada or the legally responsible decision-maker can determine eligibility.

Only the responsible organization can determine eligibility.

What this benefit may help with

Monthly income support during rehabilitation.

Partial protection against service-related loss of earning capacity.

Possible continuation after rehabilitation where diminished earning capacity is established.

Separate support for eligible survivors or dependent children.

Where this may fit in your transition

Stage 6 Stage 7 Stage 8

See the full Veterans Transition Roadmap

Typical process

Request rehabilitation and IRB screening through VAC.

Apply for rehabilitation and IRB through My VAC Account or the current paper form.

VAC reviews service connection, barriers to re-establishment and rehabilitation needs.

Provide requested medical, service and financial information.

VAC calculates the starting amount, applies prescribed offsets and issues a written decision.

Participate in the approved rehabilitation plan and report income or circumstance changes.

Review the calculation, DEC findings and any redress rights.

If you receive a decision

Other income can affect payment; retain calculation letters.

• Entitlement — whether the condition is related to service
• Assessment — the severity or percentage rating
• Effective date — when the benefit starts
• Calculation — how the amount was determined
• Approved services — what is covered and for how long
• Frequency or dollar limit — caps on treatment or services
• Reasons for denial — the specific basis for the decision

Every situation is different. Timelines vary based on the organization, the complexity of the application, and the volume of requests being processed.

What usually happens next

Application received

The organization typically sends a confirmation that your application was received.

Information requests

They may ask for additional medical, service, or financial records to support your application.

Review

A decision maker reviews your application, the evidence provided, and the applicable program rules.

Decision

You receive a written decision explaining the outcome, the reasons, and any review rights.

If approved

Benefits begin according to the program rules and the effective date stated in the decision.

If not approved

The decision letter explains why and describes your review or appeal options, including any deadlines.

Reassessment

If your condition or circumstances change, you may request a reassessment of the decision.

Reviews and appeals

Depending on the issue, you may request a departmental review or a hearing before the Veterans Review and Appeal Board.

Every situation is different. Timelines vary and are not guaranteed.

Evidence that may help

Release/salary records

medical restrictions

rehabilitation plan

work capacity

other income.

Not every document is required for every application. This list is for general awareness only.

You may also want to explore

Rehabilitation Services and Vocational Assistance

VAC Rehabilitation Services and Vocational Assistance is an individualized program intended to address service-related barriers to re-establishment.

SISIP/CAF Long Term Disability