Veterans Affairs Canada implements improvements to disability benefits that will help Veterans and their families

veterans affairs canada

The Government of Canada recognizes that when someone joins the military, their whole family serves and when a member leaves the military, we must assist their transition to civilian life. Increasing financial compensation not only provides security, but is part of the Government’s acknowledgement of the immense contribution of the Veteran’s service to our country.

The Honourable Kent Hehr, Minister of Veterans Affairs and Associate Minister of National Defence confirmed today that beginning April 1, 2017, Veterans and their families will begin to receive increased benefits from enhancements announced in Budget 2016. The new Career Impact Allowance (CIA), formally known as Permanent Impairment Allowance, is being expanded to provide increased access to higher grade levels meaning more financial compensation for the most seriously ill and injured Veterans.

The expanded access to the Career Impact Allowance is complemented by the Disability Award which also increased effective April 1, 2017 from a maximum award of $314,724 to $360,000. All Veterans who received a Disability Award since 2006 will receive an additional, tax free lump sum payment adjusted by inflation.

Fulfilling the Budget 2016 commitments was the foundation for the planned improvements announced in Budget 2017 and will provide further support for Veterans including: expanding the Veteran Family Program across all 32 Military Family Resource Centres; creating a new Veterans’ Education and Training Benefit; redesigning the Career Transition Services program; enhancing and simplifying support for caregivers; and establishing a Veteran and Family Well-Being Fund.



“We understand the significant impact that a permanent illness or injury can have on a Veteran and their families’ lives. That is why we decided to make changes to better compensate those who face the biggest challenges as a result of their service to Canada. We want to ensure these Veterans and their families receive the financial security they need. ”

Kent Hehr, Minister of Veterans Affairs and Associate Minister of the Department of National Defence.

Quick Facts

  • No Veteran will have their Career Impact Allowance impairment grade level decreased as a result of these changes.
  • Eligibility for the Career Impact Allowance does not change.
  • In 2017, the amount payable for grade one is $1,799.87/month, grade two is $1,199.93/month and grade three is $599.96/month.
  • The term “totally and permanently incapacitated” (TPI) will also change to “diminished earning capacity” (DEC). Diminished earning capacity means that a Veteran is unable to earn at least 66.7% of their adjusted pre-release salary.
  • Veterans who received a Disability Award and are getting monthly program benefits from Veterans Affairs Canada, as well as those who received a Disability Award payment within the last two years will automatically get a letter explaining the amount of their additional lump sum payment by mid-April.

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