The Income Replacement Benefit (IRB) is a taxable monthly payment from Veterans Affairs Canada (VAC). It makes sure your total income is at least 90% of your gross pre-release military salary while you’re in VAC’s Rehabilitation Program, or if a service-related health problem has left you with a Diminished Earning Capacity. In 2026, it guarantees a pre-tax income of at least $60,002.64 a year.
How much you can get
VAC works out your IRB from whichever of these is higher:
- 90% of your salary at release, indexed forward to today; or
- the minimum amount, which is $60,002.64 a year before tax in 2026 (about $5,000.22 a month).
Money you get from other sources is then subtracted. These offsets include:
- your military pension under the Canadian Forces Superannuation Act;
- Canadian Armed Forces Long Term Disability;
- Canada or Quebec Pension Plan, including CPP disability; and
- Old Age Security.
| Rule | 2026 figure |
|---|---|
| Minimum income guaranteed (before tax) | $60,002.64 a year |
| Share of pre-release salary replaced | 90% |
| Work earnings allowed before the IRB is reduced | $20,000 a calendar year |
| Amount from age 65, if you have a Diminished Earning Capacity | 70% of your pre-65 amount, minus offsets |
Working while you get the IRB: you can earn up to $20,000 a year from work or self-employment without it affecting your benefit. Every dollar above $20,000 reduces your IRB by a dollar. The $20,000 starts over every January 1.
Career Progression Factor: if you have a Diminished Earning Capacity and hadn’t served a full career, your IRB goes up by 1% a year from your release until you would have reached 20 years of service or age 60.
VAC’s Income Replacement Benefit page has a tool to help estimate your amount.
Who qualifies
You should apply if you:
- are a current or former member of the Canadian Armed Forces;
- have applied to VAC’s Rehabilitation Program;
- are following a physical or mental health program because a service-related health problem is making your move out of the military harder; and
- are under 65.
Survivors and orphans should also apply if the CAF member or Veteran died before 65 of an illness or injury related to their service, or died while getting the IRB at any age.
After 65: the IRB normally ends at 65. If you have a Diminished Earning Capacity, meaning a permanent health problem that stops you from doing any suitable paid work, it can continue for life at 70% of your pre-65 amount, minus offsets. If you’re still in the program when you turn 65, your amount is recalculated from the first day of the month after your 65th birthday.
How to apply
- Online: sign in to My VAC Account and use the guided form. VAC says this is the easiest and fastest way.
- By mail: download the application form from VAC’s IRB page, fill it out, print it and mail it to the address on the form.
- Get help: call 1-866-522-2122, or visit any VAC office or CAF Transition Centre.
Once you’re getting the IRB, you must report new income or changes to VAC, including your regular work earnings every month. Send the type of income, start or end date, monthly gross amount and proof (such as pay stubs) through My VAC Account, or mail them to Veterans Affairs Canada, PO Box 6000, Matane, Quebec G4W 0E4.
Payment dates and how it’s paid
The IRB is paid monthly, and you can have it deposited straight into your bank account. VAC doesn’t publish a payment day for the IRB, so no dates are shown at the top of this page. The monthly dates VAC does publish are for disability benefits, such as Pain and Suffering Compensation and the Disability Pension. Your own deposit date is in My VAC Account.
The IRB is taxable, and VAC sends you a T4 slip. If you want more tax taken off each payment, fill out a federal TD1 form for VAC. Expect a change in your payment every January, when the salary used to work out your IRB goes up with the cost of living, and when your $20,000 earnings exemption starts over.
Payment late or missing?
Check My VAC Account first, then check with your bank. If it still hasn’t arrived, call Veterans Affairs Canada at 1-866-522-2122 (French 1-866-522-2022; TDD/TTY 1-833-921-0071), Monday to Friday, 8:30 am to 4:30 pm local time. From the United States, call 1-888-996-2242. To add or change your direct deposit, use My VAC Account or VAC’s direct deposit request form.
Watch for scams. VAC and the government never ask for fees, gift cards or passwords to release a payment. If you get a message about your benefits, sign in to My VAC Account yourself instead of clicking a link. See common benefit scams.
If the IRB ends
If you can work but haven’t found a job after the IRB ends, you may qualify for Canadian Forces Income Support, a tax-free monthly payment for basic needs. You must apply within six months of the date you stop qualifying for the IRB. VAC’s Education and Training Benefit and Career Transition Services may also help.
Common questions
When is the VAC Income Replacement Benefit paid?
Monthly. VAC doesn’t publish a set payment day for the IRB, so check My VAC Account for your deposit date.
What is the minimum Income Replacement Benefit in 2026?
The IRB makes sure your pre-tax income is at least $60,002.64 a year in 2026, before other income such as a military pension is subtracted.
Is the Income Replacement Benefit taxable?
Yes. VAC sends you a T4, and you can ask for more tax to be taken off by filling out a TD1 form.
Can I work while getting the IRB?
Yes. You can earn up to $20,000 a year from work without it affecting your IRB. Earnings above that reduce it dollar for dollar.
Does the IRB stop at 65?
It does unless you have a Diminished Earning Capacity. In that case it continues for life at 70% of your pre-65 amount, minus offsets such as CPP and OAS.