10% Temporary Wage Subsidy for Employers

Providing eligible employers with a temporary wage subsidy for a period of three months from March 18, 2020 to June 19, 2020. The subsidy will be equal to 10% of remuneration paid during that period up to $1,375 per eligible employee to a maximum total of $25,000 per employer. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities. For employers that are eligible for both the Canada Emergency Wage Subsidy and the 10% wage subsidy for a period, any benefit from the 10% wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period. PBO estimates the cost of this measure to be $844 million for the first quarter of 2020-21. The time horizon for this costing is aligned to PBO’s current Economic and Fiscal Scenario, although there may be potential fiscal impacts for subsequent years