Share with your friends

Canada: Emergency wage subsidy (75%) enacted (COVID-19)

Canada: Emergency wage subsidy (75%) enacted (COVID-19)

Canada has enacted emergency wage subsidy legislation to help businesses retain employees during the coronavirus (COVID-19) pandemic.


Related content

Canada’s emergency wage subsidy is a temporary measure, being made available to qualifying employers that have lost revenue due to COVID-19. This temporary wage subsidy generally provides an amount to employers equal to 75% of the remuneration paid to employees, up to a maximum of $847* per week per employee, from 15 March 2020 to 6 June 2020.

The legislation for the subsidy (passed into law on 11 April 2020) confirms many details of the program that were already known, and provides additional guidance on how employers can qualify for the subsidy. In particular, there are new rules that:

  • Clarify the calculation of a decrease in revenue, including for amounts derived from non-arm's length persons or partnerships
  • Outline how employers must attest to their eligibility
  • Provide details on how employers that qualify for the wage subsidy may also receive a 100% refund for certain employer-paid contributions

KPMG observation

With enactment of the 75% emergency wage subsidy, as well as the 10% temporary wage subsidy for certain small businesses, affected employers need to consider acting quickly to determine whether they qualify for these subsidies and start the application process.

Read an April 2020 report [PDF 224 KB] prepared by the KPMG member firm in Canada

*$=Canadian dollar

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal