NOKTogether | Wage subsidy details released

The federal government has released details of the proposed Canada Emergency Wage Subsidy extension and improvements. Legislative approval is still required, however the draft would:

  • Allow the extension of the CEWS until Dec. 19, 2020, including redesigned program details until Nov. 21, 2020.
  • Make the subsidy accessible to a broader range of employers by including employers with a revenue decline of less than 30 per cent and providing a gradually decreasing base subsidy to all qualifying employers. This would help many struggling employers with less than a 30 per cent revenue loss get support to keep and bring back workers while also ensuring those who have previously benefited could still qualify, even if their revenues recover and no longer meet the 30 per cent revenue decline threshold.
  • Introduce a top-up subsidy of up to an additional 25 per cent for employers that have been most adversely affected by the pandemic. This would be particularly helpful to employers in industries that are recovering more slowly.
  • Provide certainty to employers that have already made business decisions for July and August by ensuring they would not receive a subsidy rate lower than they would have had under the previous rules.
  • Address certain technical issues identified by stakeholders.

For more information, go to https://www.canada.ca/en/department-finance/news/2020/07/adapting-the-canada-emergency-wage-subsidy-to-protect-jobs-and-promote-growth.html

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