How self-employed reservists and their employers are compensated during deployment

When a reservist is called away for a full-time military operation, someone else has to absorb the cost. For employers, this might mean paying overtime. It can also mean hiring temporary staff or pausing projects. For self‑employed reservists, it can mean losing business income right away. In Canada, the federal government helps fill this gap through the Compensation for Employers of Reservists Program (CERP). This program provides direct financial support during deployments.

How compensation works under the Compensation for Employers of Reservists Program (CERP)

CERP is a federal, non-repayable funding program run by Employment and Social Development Canada (ESDC). The program’s main goal is to help with the operational costs that come up when a reservist is deployed on full-time operational duty under a Chief of Defence Staff–directed operation, in Canada or abroad.

There are two main groups who can get compensation:

Civilian employers of eligible reservists
Self-employed reservists, who are treated like employers under this program

Who is eligible?

You may qualify for CERP if all the following apply:

The reservist is a member of the Primary Reserve or Canadian Rangers
The reservist is deployed on full-time operational duty for at least 30 consecutive days
For employers:
- The reservist worked for you at least 30 hours per week for 3 months in a row before the leave
- You are a private sector employer, or a municipal, provincial, or territorial government
For self-employed reservists:
- You meet the federal definition of self-employment
- You are deployed for at least 30 consecutive days
- You apply after returning from duty

Federal departments, agencies, and Crown corporations are not eligible.

How much compensation can you receive?

CERP provides a lump-sum payment based on a national formula:

40% of the Yearly Maximum Pensionable Earnings (YMPE)
Divided by 52 weeks
Multiplied by the number of weeks the reservist is deployed

You can receive compensation for up to 78 weeks per deployment.

The exact amount changes each year as the YMPE is updated. This formula ensures people are treated the same across the country, no matter where they work.

What the funding is meant to cover

CERP funding helps with operational costs, such as:

Hiring temporary or contract staff
Overtime paid to current employees
Lost productivity or administrative disruption
For self-employed reservists, loss of business income during deployment

This funding is usually treated as business income for tax purposes. It’s a good idea to check with your accountant to make sure you report it correctly.

Application timing and process

You must apply for CERP after the reservist returns from deployment. Here are some important points:

Applications are not automatic; you must submit them yourself
Processing is first come, first served
You need to provide supporting documents, such as proof of deployment and proof of employment or self-employment

If you want to check your eligibility for CERP or compare it with other programs, tools like GrantHub’s eligibility matcher can help you filter options quickly by province and business type.

Common mistakes to avoid

Applying before the reservist returns
CERP only accepts applications after active duty ends. Submitting early can delay or even cancel your application.
Assuming all reservists qualify
Only members of the Primary Reserve and Canadian Rangers on Chief of Defence Staff–directed operations are eligible.
Missing the 30-day deployment threshold
Deployments shorter than 30 consecutive days do not qualify, even if you have extra costs.
Overlooking self-employed eligibility
Some reservists think the program is only for employers. If you are self-employed, you may still qualify for CERP.

Frequently Asked Questions

Q: Is CERP compensation repayable?
No. CERP provides non-repayable funding. Once approved, you do not have to pay it back.

Q: Can a small business apply if it only has one employee who is a reservist?
Yes. The size of your business does not matter. If you meet the eligibility rules, you can apply.

Q: Are self-employed reservists paid differently than employers?
No. The same formula applies. Self-employed reservists are compensated for lost operational capacity using the YMPE-based formula.

Q: Is there a deadline to apply?
There is no set annual deadline. Applications are processed on a first come, first served basis, as long as funding is available.

Q: Can employers receive CERP more than once?
Yes. Employers can apply for each eligible deployment, up to 78 compensated weeks per deployment.

If you’re looking for more programs like CERP, GrantHub tracks hundreds of active grant programs across Canada. This can help you find the right fit for your business or self-employment situation.

Next steps

If your business employs a reservist—or you are self-employed and serve in the Reserve Force—CERP can help reduce the financial impact of deployment. Make sure you check your eligibility and gather the right documents before applying. GrantHub can help you discover federal and provincial programs that fit your needs, so you can focus on running your business instead of paperwork.

How self-employed reservists and their employers are compensated during deployment