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.