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Canada: Four-week extension of relief program proposed for furloughed employees (COVID-19)

Canada: Four-week extension of relief program proposed

The Department of Finance announced a proposal to extend the current treatment of furloughed employees under the Canada emergency wage subsidy (CEWS) program by four weeks, to 26 September 2020 (from August 30, 2020). The CEWS program was established as a relief program in response to the coronavirus (COVID-19) pandemic.

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Under the proposal, employers that qualify for the CEWS program would be able to continue to claim up to a maximum benefit of $847* per week, to support remuneration for each of their furloughed workers. More details on how to calculate CEWS for furloughed workers for the program's remaining periods are expected to be announced in the coming weeks.

Finance originally proposed to adjust the wage subsidy for furloughed employees under the revised CEWS program, starting with the September claim period (beginning 30 August 2020) to align with the Canada emergency response benefit (CERB) and employment insurance (EI). However, more recently, Finance proposed to further extend the CERB for four weeks and simplify the EI program to help eligible individuals transition from CERB to the EI system starting 27 September 2020.

Read an August 2020 report prepared by the KPMG member firm in Canada

*$=Canadian dollar

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