When one of your employees is called away for military service, your business still has bills to pay. The Compensation for Employers of Canadian Armed Forces Reservists program helps offset the cost of replacing staff who are deployed on eligible military operations. It is a federal, non-repayable program designed to support employers while reservists serve Canada.
This guide explains how the program works, who is eligible, how much funding you can receive, and how to avoid common application mistakes.
The Compensation for Employers of Reservists Program (CERP) is delivered by Employment and Social Development Canada (ESDC). It provides financial compensation to civilian employers — and in some cases self-employed reservists — after a reservist returns from an eligible deployment.
The funding only covers part of the wages, not the full amount. This helps reduce costs for employers, especially small businesses.
Funding is calculated using a federal formula tied to the Yearly Maximum Pensionable Earnings (YMPE):
Because YMPE is set annually, the exact dollar amount can change year to year. The program pays only for the eligible deployment period.
You may be eligible if all of the following apply:
Businesses of any size can apply. There is no restriction based on industry or province.
Ready to check your eligibility? GrantHub’s eligibility matcher helps you see if your business qualifies and shows you other wage support programs that match your needs.
These are official domestic or international missions authorized by the Chief of the Defence Staff. Training exercises and voluntary service usually do not qualify unless formally designated.
You can only apply after the reservist returns from duty. Applications submitted before the end of deployment are not eligible.
While exact intake timelines can vary, you should be prepared to provide:
Processing times depend on application volume and completeness.
Applying before the reservist returns
Applications are only accepted once the employee has completed their deployment.
Misunderstanding the funding amount
This program does not reimburse full wages. It is capped at 40% of YMPE and prorated weekly.
Missing the minimum employment requirement
If the reservist did not work at least 30 hours per week for three consecutive months before leave, the application may be denied.
Assuming all deployments qualify
Only Chief of the Defence Staff–directed operations are eligible. Always confirm deployment status first.
For more tips on employer funding, see Common Mistakes Employers Make When Applying for Wage Subsidy Grants.
Q: Is the Compensation for Employers of Reservists Program repayable?
No. The funding is non-repayable. You do not need to pay it back as long as you meet the program conditions.
Q: Can small businesses apply for reservist employer compensation?
Yes. Businesses of any size are eligible, including small and medium-sized employers, as long as all criteria are met.
Q: Can self-employed reservists receive compensation?
Yes. Self-employed reservists may apply if they meet the deployment and service requirements.
Q: Is the compensation taxable?
In most cases, the funding is treated as business income. You should confirm how it applies to your situation with an accountant.
Q: Does the program cover training or overtime costs?
No. The compensation is a calculated amount based on YMPE, not actual replacement or overtime expenses.
If you employ reservists, the Compensation for Employers of Canadian Armed Forces Reservists program can reduce the financial impact of military leave while supporting those who serve. GrantHub tracks hundreds of active grant and wage support programs across Canada — including federal employer compensation programs — and helps you see which ones fit your business profile as your workforce changes.
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