CERP Funding Guide: Get $574/Week When Your Reservist Employee Deploys
If you employ a member of the Canadian Armed Forces Reserve Force, you are supporting both a dedicated worker and a citizen who serves their country. But when that employee takes time away from your business for military training or deployment, it can create real operational challenges.
The Compensation for Employers of Reservists Program (CERP) is designed specifically to help. It provides a financial grant to Canadian employers—and self-employed reservists—to offset the costs of covering for an employee who is away on military duties .
Here is everything you need to know about eligibility, how much you can receive, and how to apply.
What Is the Compensation for Employers of Reservists Program?
CERP is a grant program delivered by the Department of National Defence (DND) with administrative support from Employment and Social Development Canada (ESDC) and Service Canada .
The program provides a lump-sum, one-time financial payment to eligible employers after a reservist employee returns to work following an absence of 30 days or more due to military duties .
What can the grant cover? The funding is intended to offset operational costs that arise when a reservist is away, such as:
- Training or hiring replacement workers
- Paying overtime to existing employees
- Realigning business operations to manage the staff reduction
- Compensating for reduced revenue during the employee’s absence
Who Is Eligible for CERP Funding?
Eligible Applicants
You can apply for CERP if you are a Canadian employer (excluding federal government departments, federal agencies, and Crown corporations) of a reservist who is a member of the Primary Reserve or Canadian Rangers .
Eligible employer types include:
- Private sector organizations
- Municipal governments
- Provincial and territorial governments
Self-Employed Reservists
If you are a self-employed reservist, you may also be eligible for additional financial compensation when you take time away from your business for military duties . You must provide documentation proving that your business is real, active, and your main source of employment for at least 13 consecutive weeks before your leave .
The Reservist Employee’s Requirements
To trigger a grant, your reservist employee must:
- Be away from work for a minimum of 30 consecutive days
- Be deployed on a Chief of Defence Staff-directed operation or participating in military skills training (including as a course instructor or support staff)
- Have worked for you for at least 30 hours per week for 13 consecutive weeks (three months) prior to the leave
What Is NOT Eligible
Grants are not issued to:
- Federal government departments, agencies, or Crown corporations
- Employers whose reservist does not meet the Primary Reserve or Canadian Rangers definition
- Employers whose reservist does not meet the minimum work threshold
How Much Funding Can You Receive?
CERP provides a grant calculated based on the Yearly Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan.
The formula:
40% of the YMPE ÷ 52 weeks × number of weeks deployed
2026 example calculation:
- YMPE for 2026: $74,600
- Weekly rate: ($74,600 ÷ 52) × 40% = **approximately $574 per week**
For a 10-week deployment, the grant would be approximately $5,739 .
Maximum duration: You can claim up to 78 weeks (18 months) of active military activity, including mandatory pre-deployment training, the deployment itself, and post-deployment activities .
Important Program Details
| Feature | Details |
| Type of transfer | Grant (not a contribution—no repayment required) |
| Application deadline | Within 12 months of the reservist’s return to work |
| Application acceptance | Ongoing (no closing date) |
| Maximum deployment coverage | 78 weeks (18 months) |
| Minimum deployment required | 30 consecutive days |
How to Apply for CERP
Step 1: Wait for the Reservist’s Return
Applications can only be submitted after the reservist employee has returned to the civilian workplace following their military leave .
Step 2: Gather Required Documentation
You will need to provide:
- Business details and proof of Canadian operations
- Reservist’s status as an employee (employment records)
- Confirmation of the reservist’s absence for military duties (provided by the Canadian Armed Forces)
- Proof that the reservist worked 30+ hours/week for 13 weeks prior to leave
For self-employed reservists: Documentation showing the business is real, active, and your main income source for 13+ weeks before leave .
Step 3: Complete the Grant Application Package
Download and complete the application package using the official guide. It is recommended to read the entire guide before starting .
Step 4: Submit Your Application
Submit your completed application no later than 12 months following the reservist’s return to work .
Where to submit: Applications are accepted on an ongoing basis by Service Canada, which administers the program on behalf of DND .
Program Objectives & Expected Results
CERP is not just about financial compensation—it supports broader goals for Canada’s military and workforce :
Immediate outcomes:
- Employers are compensated for operational losses when reservists take time away to serve
- Enhanced relationships between the military and civilian employers
- Strengthened stakeholder capacity to support reservists
Long-term outcomes:
- Greater awareness of the Reserve Force among employers and communities
- Improved links between the Canadian Armed Forces and Canadian communities
- Enhanced reputation of reservists and the CAF across the country
Contact Information
For questions about the Compensation for Employers of Reservists Program:
- Email (DND): cflc@forces.gc.ca
- Email (Service Canada): PDER-CERP@servicecanada.gc.ca
- Phone: 1-800-567-9908 or 613-995-8700
Final Advice for Employers
If you employ a reservist, make sure they know you are aware of this program. Many reservists do not realize their employer can receive compensation for their military leave.
Key takeaways:
- Apply within 12 months of the reservist’s return—do not miss the window
- Keep clear employment records showing hours worked before the leave
- Work with your reservist employee to obtain military confirmation of their deployment or training
- The program accepts applications ongoing, so there is no rush to meet an annual deadline, but do not delay after the return
Supporting reservists strengthens both your workforce and Canada’s military capacity. CERP ensures that supporting them does not come at an unreasonable cost to your business.
YOU MAY BE INTERESTED IN:
CAS-ITE 2026: Up to 70% Funding for Skilled Trades Training Equipment
New Horizons for Seniors Program 2026: $50K Grants for Community Projects
Canadian Benefit for Parents of Young Victims of Crime: $500/Week Income Support
