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ARTICLE · 20 APRIL 2020

Covid-19 Impact: New Canada Emergency Wage Subsidy

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In a much anticipated press conference this morning, Prime Minister Trudeau released further details of the wage subsidy the government had indicated on March 27, 2020...

CanadaCoronavirus (COVID-19)
Adrian D. Jakibchuk
Adrian D. Jakibchuk
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In a much anticipated press conference this morning, Prime Minister Trudeau released further details of the wage subsidy the government had indicated on March 27, 2020 would be forthcoming for small- to medium-sized businesses.

In an unexpected development, however, Prime Minister Trudeau revealed that the current plan is now to make the subsidy available to all employers "big and small" (including non-profits and charities), regardless of the number of employees they may employ. To be eligible for the program, however, employers must have seen their revenue decrease by at least 30% because of COVID-19.

Pursuant to the Canada Emergency Wage Subsidy program, eligible businesses will be granted a temporary wage subsidy equal to 75% on the first $58,700 each worker earns in one year, which equals $847 per worker per week. This subsidy will be backdated to March 15, 2020. While this subsidy will be capped at 75%, the Prime Minister urged participating companies to pay

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