What is Permanent Impairment Allowance?

Permanently impaired AllowancePermanent impairment allowance provides Canadian Veterans compensation for lost employment potential and career advancement opportunities due to a service-related permanent and severe impairment.

The permanent impairment allowance is a taxable, monthly allowance that is payable for life.  If you are considered permanently impaired from Veterans Affairs Canada then you may qualify for the permanent impairment allowance.

There are three different levels of compensation:

permanent impairment allowance
A nurse walking with a Canadian Veteran in park.
  • GRADE 1 – This grade is for seriously injured Veterans with severe physical, functional and/or mental impairment — for example, those who have quadriplegia, a four limb paralysis also known as Tetraplegia Persons having Quadriplegia are referred to as quadriplegics.  Or require total care and supervision as your injuries have left you incapable of taking care of yourself.


  • GRADE 2 –  This grade is for Veterans with impairments such as a single or double limb amputation or that require recurrent hospitalization for a psychiatric condition.  Such as post traumatic stress disorder, or severe depression / anxiety.


  • GRADE 3 – This grade is for Veterans with less severe impairments such as requiring chronic use of medication and psychiatric care for depressive and anxiety symptoms.  Simply means that you require quite a bit of care for your symptoms but you do not need to be hospitalized.

Being a graded system comes with graded levels of payouts per month as well.  There are 3 levels of benefit allowance each month and they are calculated based on which grade you are assigned.

The breakdown is as follows:

Grade Amount
1 $1,753.97
2 $1,169.33
3 $584.66

The Permanent Impairment Allowance supplement is $1,074.93.

What is the Permanent Impairment Allowance Supplement?

Permanently impaired AllowanceVeterans who receive the Permanent Impairment Allowance, and who are deemed to be totally and permanently incapacitated, are also eligible for the Permanent Impairment Allowance Supplement.  You do have to apply for this benefit and your case manager will help you with the paperwork.

This supplement is a taxable, monthly benefit, payable for life to those in receipt of the Permanent Impairment Allowance and, due to the level of their disability, are not capable of suitable gainful employment.  Canadian Armed Forces Veterans may qualify for the Permanent Impairment Allowance Supplement if they are:

  • in receipt of the Permanent Impairment Allowance, and
  • have been determined to be “totally and permanently incapacitated.”

Veterans who have been determined to be totally and permanently incapacitated but are not eligible for the Permanent Impairment Allowance are still eligible to receive the Earnings Loss Benefit, which ensures the eligible Veterans’ incomes don’t fall below 75% of their gross pre-release military salary.

We got all of our information from VAC’s TPI Facts and VAC’s Rates and Services.  I encourage you to call Veterans Affairs Canada if you have any questions about this benefit or others.  We will continue to research programs and benefits and pass them along.

Thank You

The Wellness Soldier

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