Before Confederation in 1867, the Canadian militia mostly copied the British Army policies towards soldier pensions.

As with the British, officers who lost an arm, a leg, or an eyeball were given a year's pay and then half-pay for the rest of his life. If he had purchased his commission, its sale would be added to his assets. If a regular solder was injured so badly that he could no longer earn a living, he would be given 20 pounds a year, but since their families were expected to look after the wounded man, they often got less. Militia pensions were local responsibilities in Canada, sometimes provided by donations (such as to the 1812 veterans), and more rarely from tax revenues. Compensation for injuries during peacetime were reviewed by a board of officers and were usually difficult to get.

Modern Canada (post-1867) experienced its first "casualties" when some of its militia was killed in the 1866 Fenian raids. Most of the wounded and killed received some sort of pension, but it was a small burden on the Canadian government. One widow received an annual pension of 184$ until her death in 1922. By 1890, the Fenian Raid pensions only cost Canada 3,086$ a year, not much at all.

The casualties from the North-West campaign to quell Louis Riel's rebellion in 1885 were much higher. Disabled officers and officers' widows received a full year's pay, plus a pension based on a percentage of their rank pay, which could range from 2.80$ a day for a Lieutenant to 1,200$ a day for a Lieutenant-Colonel. A regular wholly disabled soldier could get 0.45$-0.60$ a day, while one who was only partially disabled might receive 0.30$-0.55$. At the time, an unskilled labourer could make 1$ a day, so these amounts were not great. Widows of permament force soldiers who died in the NW campaign were given pensions of half their husband's pay of 0.40$ a day if he died in action - 3/8 if he died from disease.

Pensions and benefits were not systematized in any way though. Some received more than others because they were of "good character," a decision made by individual reviewers of their file. Others might have know people who increased their amount, or what have you. Canada, unlike Britain, did have government money dedicated to their wounded/widows though. Britain still relied on "patriotic fund" like charities until after (or maybe during?) the First World War.