Canada: Emergency wage subsidy threshold is 30% revenue decline (COVID-19)

Canada: Emergency wage subsidy threshold

Employers that experience a 30% decline in revenue in June 2020 will be eligible for the 75% emergency wage subsidy.


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Canada’s emergency wage subsidy—a temporary relief measure available to qualifying employers that have lost revenue during the coronavirus (COVID-19) pandemic—generally provides an amount to employers equal to 75% of employees' remuneration paid, up to a maximum of $847* per week per employee.

Following the government's announcement that the subsidy would be extended to 29 August 2020, the Canada Revenue Agency (CRA) confirmed that the wage subsidy will maintain the “30% revenue-drop threshold” for the current June 2020 period (that is, for the period from 7 June 2020 to 4 July 2020).

The CRA noted that further changes to the emergency wage subsidy—including changes to the threshold—would only commence for later claim periods.

In a related development, Canada’s Department of Finance recently completed a public consultation on the 75% emergency wage subsidy and is expected to introduce changes to the revenue decline threshold for the remaining claim periods.

*$=Canadian dollar

Read a June 2020 report [PDF 187 KB] prepared by the KPMG member firm in Canada

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