TN 23 (06-10)

A. Policy for veterans’ training pay

Veterans' training pay is not wages. Subsistence or dependency allowances paid by the Department of Veterans Affairs (VA) to a veteran for school or on-the-job training are not pay for employment. Attending school and on-the-job training are eligibility requirements for receiving the allowance. These payments are limited to 50 percent of the remuneration paid for a specified period of time, determined by the type of job for which the veteran is being trained. It is important to note that, as the program progresses, the VA subsidy may be reduced by increments until it reaches 15%, before ending completely. Any payments made by the employer over and above the VA subsidy are wages.

EXAMPLE: A veteran, receiving 50% subsidy, is employed at an hourly rate of $15.00 by an air conditioner repair facility. The VA subsidy is $7.50 (50% of $15.00). The remaining $7.50, paid by the employer is wages.