Canada: Regulations on wage, rent, and support subsidies (COVID-19)

Canada: Regulations on wage, rent, support subsidies

Regulations concerning relief and support subsidies granted in response to the economic consequences of the coronavirus (COVID-19) pandemic provide the subsidy programs have been extended to 13 March 2021 (that is, for three additional four-week periods).

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The regulations concern:

  • Canada emergency wage subsidy (CEWS)
  • Canada emergency rent subsidy (CERS)
  • The lockdown support subsidy for eligible businesses

These relief programs have been allowed until 13 March 2021, and according to the government, it will propose to extend these subsidies for periods beyond 13 March 2021.

CEWS extension: The regulations reflect an increase to the CEWS to a maximum of 75% (from 65%) of eligible wages for the qualifying periods from 20 December 2020 to 13 March 2021. The maximum base subsidy will remain at 40% and the maximum top-up wage subsidy rate will increase to 35%. These regulations also amend the weekly wage subsidy for a furloughed employee from 20 December 2020 to 13 March 2021 to be the lesser of:

  • The amount of eligible remuneration paid in respect of the week, and
  • The greater of:
    • $500* and
    • 55% of baseline remuneration in respect of the eligible employee determined for that week, up to a maximum subsidy amount of $595

CERS extension: The regulations reflect an extension of the current rate structure for the CERS until 13 March 2021 using the same reference periods as under the CEWS. The CERS allows employers to claim a subsidy of up to 65% of eligible expenses (subject to certain limits), depending on revenue decline.

Lockdown support subsidy: The lockdown support subsidy (extended to 13 March 2021) provides an additional 25% lockdown support subsidy to qualifying entities on eligible expenses until this date.

Read a January 2021 report prepared by the KPMG member firm in Canada


*$=Canadian dollar

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