The Government of Canada’s Support to Businesses
The Government of Canada announced a wage subsidy for eligible businesses of up to 75% for 3 months, retroactive to March 15, 2020. On March 30, 2020, Prime Minister Trudeau announced that businesses would be eligible for this subsidy if they see a 30% drop in revenue due to COVID-19, regardless of the number of employees. In addition, this subsidy will apply to non-profit organizations and charities.
According to Prime Minister Trudeau, the Government of Canada will cover up to 75% on the first $58,700 of an employee’s salary, which amounts to up to $847 per week.
The Prime Minister also encouraged businesses to pay the remaining 25% not covered by the subsidy if they have the means to pay. He also encouraged the hire back of individuals who have been laid off due to COVID-19.
The Government of Canada will likely release further details with respect to this subsidy in the upcoming weeks.