You want to hire a veteran for an entry-level role. But the work takes months to learn, and you do not want to pay a full journey-level wage to someone who is still ramping up. There is a federal program built for exactly this. It is called VA On-the-Job Training, or OJT.

Here is how it works for you as the employer. You hire the veteran. You pay a reduced training wage that rises as their skills grow. The veteran draws a tax-free monthly GI Bill stipend on top of your wage, paid by the VA, not by you. The veteran earns more during a learning period that would otherwise be a pay cut. You get a motivated hire who stays.

The catch most employers miss is the approval step. Your training program has to be approved by a State Approving Agency before any veteran can use their GI Bill on it. This guide walks through the wage and stipend mechanic, the SAA approval process, and the VA form you file to get set up. We will keep this focused on classic OJT. If you want to run a formal Department of Labor registered apprenticeship instead, that path has its own rules, and we cover it in the apprenticeship pathways guide for veterans.

What is VA On-the-Job Training for employers?

VA OJT is a way for a veteran to use GI Bill benefits while learning a job at your company. The veteran is your employee. They draw a regular paycheck from you. They also get a monthly housing-based payment from the VA for the months they are in training.

The program is for jobs you learn by doing, not in a classroom. Think a maintenance tech, a wastewater operator, a fleet mechanic, a production lead, or a logistics coordinator. The veteran starts at entry level and trains up to the journey level over a set period.

OJT is not a formal apprenticeship. A registered apprenticeship has to be approved by the Department of Labor and usually pairs work hours with related classroom instruction. OJT is simpler. It is on-the-job learning with a written training outline, approved at the state level. Both can use the GI Bill. OJT is the lighter lift for most midsize employers. If you want to run a registered apprenticeship instead, see our guide on getting SAA approval to offer GI Bill benefits in a veteran apprenticeship.

How does the wage and stipend mechanic actually work?

This is the part that makes OJT attractive on the budget. There are two streams of money. One comes from you. One comes from the VA. They work together.

The wage you pay

You pay the veteran a training wage that starts low and steps up. The VA sets the floor. Under VA policy, the starting wage must be at least 50% of the wage you pay a fully trained worker in that job. You then grant periodic raises through the program. By the last full month of training, the wage must reach at least 85% of the journey-level wage.

So the curve is built in. A new trainee costs you less while they are least productive. As they get better and more useful, their pay rises toward full rate. By the time they finish, they are a trained worker earning close to full wage. One note: if you are a federal, state, or local government employer, that 85% rule does not apply to you.

The stipend the VA pays

On top of your wage, the veteran gets a monthly payment from the VA. For Post-9/11 GI Bill users, this payment is based on the monthly housing allowance, and it is tax-free. The veteran files for it. It does not come out of your payroll.

The stipend steps down as the veteran moves through training. The VA pays the highest amount during the early months, when your training wage is lowest. As your wage rises, the VA payment drops every 6 months. By the end, the veteran is earning most of their income from your full wage and a smaller VA payment. The exact percentages and dollar amounts change with the rate year, so point your veteran hires to the current rates on VA.gov's on-the-job training page.

The result is a hire who is paid well during the learning curve without you carrying full wage from day one. That is the deal that makes a veteran say yes to an entry-level role they might otherwise pass on. And it is why OJT keeps people in seats. The stipend rewards them for sticking with the training.

Why does the SAA approval step matter so much?

This is the unique part of OJT, and the part that trips up first-time employers. A veteran cannot use their GI Bill at your company unless your specific training program is approved. The approval does not come from the VA directly. It comes from a State Approving Agency, or SAA.

State Approving Agencies have the authority to approve OJT and apprenticeship programs under federal law, specifically 38 U.S.C. 3677. Each state has an SAA. They review your program, your training outline, and your wage schedule. If it meets the standard, they approve it. Only then can a veteran draw their benefit while working for you.

Why does this exist? Because the VA is paying public money to a veteran for training. The SAA confirms the training is real, the wage progression is fair, and the program leads to a genuine journey-level skill. It protects the veteran and the taxpayer. For you, it is a one-time setup that opens the door to GI Bill-eligible hires going forward.

How do you get your OJT program approved?

The process is straightforward once you know the steps. You are building a written case that your job trains a veteran from entry to journey level over a set time, with rising pay.

A few details matter on the application. The form has to be signed by someone with authority to set policy at your company. That signer also commits the company to repay funds if a payment error is found later. So this is not a task for a junior coordinator. Route it to a manager or an HR lead who can sign for the business.

You will need the official form. VA Form 22-8865 can be requested through your SAA or from the VA. You can confirm the form details on the VA Form 22-8865 page. The SAA is your main point of contact through the whole process.

How long does an OJT program run?

VA OJT programs run a minimum of 6 months and a maximum of 24 months. The length depends on the job. A role that takes a year to master gets a 12-month program. A more complex trade might run the full 24 months.

You set the training time based on how long the job actually takes to learn. The SAA reviews it. The clock matters because the veteran's stipend steps down on a 6-month schedule, and your wage rises against the same timeline. A well-built program lines up the raises with the skill milestones.

Match the program length to real ramp-up time. Do not pad it to keep wages low. The SAA looks for a training outline that is honest about how long the work takes to learn. A fair program approves faster and keeps your veteran hires bought in.

Which veterans and which roles fit OJT best?

OJT works for any role a person learns by doing. It is a strong fit for skilled trades, equipment operation, maintenance, public safety, and operations roles. The veteran needs remaining GI Bill entitlement and an eligible benefit, which they confirm with the VA.

It pairs well with the way many veterans already think. They are used to structured training pipelines that build a skill over time. A program that pays them to learn a trade is familiar ground. That is also why veterans tend to finish these programs at a high rate.

If your roles are more hands-on and field-based, OJT lines up with the same talent you would target in recruiting veterans for skilled trades and field operations. If you run a plant floor, the same logic applies to hiring veterans for manufacturing roles. In both cases, OJT lets you bring someone in green and grow them into a journey-level worker.

Where to find OJT-ready veteran candidates

You need a steady flow of veterans who want exactly this kind of role. That is where BMR's talent pool fits. We add over 1,000 new veteran profiles every month, and more than 60,000 resumes have been built on the platform. Many of these candidates are early-career veterans looking to train into a trade or operations role. That is the profile OJT is built for.

Sourcing through transition channels also feeds OJT well. Veterans leaving service are looking for the next step, and a paid training pathway is an easy sell. See how this connects to a full veteran sourcing channel built on transition programs.

How does OJT stack up against other veteran hiring incentives?

OJT is one tool. It is not the only one. The smart move is to know how it fits with the rest.

OJT helps you afford the training period through the wage curve and the veteran's stipend. It does not put cash in your pocket directly. The Work Opportunity Tax Credit is different. That is a federal tax credit you claim for hiring from certain veteran groups. You can read the full breakdown in the Work Opportunity Tax Credit employer guide.

One thing to flag on WOTC: the credit lapsed at the start of 2026 and has not been reauthorized as of this writing. Hires that began work on or before December 31, 2025 still qualify. For new hires, do not assume the credit is live yet. Keep screening and file the paperwork on time so you are ready if Congress restores it. Check the latest status with the Department of Labor's WOTC page before you count on it.

Beyond OJT and WOTC, there are other programs worth knowing. Several are covered in our rundown of veteran hiring incentives beyond WOTC. The OJT stipend mechanic and a tax credit can stack. They work on different parts of the deal, the wage and the tax bill.

What to do next

If you have entry-level roles that take real time to learn, OJT is worth setting up. The work is front-loaded. You apply once, get the program approved, and then you have a paid training pathway that veterans actively want.

Start by contacting your State Approving Agency to begin the application and ask for VA Form 22-8865. Build a clean training outline with a wage schedule that runs from 50% to at least 85% of journey wage. Match the length to real ramp-up time, somewhere between 6 and 24 months.

Then you need the candidates. BMR connects employers with a growing pool of veteran talent, with over 1,000 new profiles added every month and more than 60,000 resumes built on the platform. Many of them are exactly the early-career veterans an OJT program is designed for. Reach out to access BMR's veteran talent pool and start filling those training roles.