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Canada: Proposed hiring subsidy, extension of wage and rent subsidy programs (COVID-19)

A proposal for a new hiring subsidy and a proposed extension of wage and rent support subsidies

Proposal for new hiring subsidy and proposed extension of wage and rent support subsidies

A proposal for a new hiring subsidy and a proposed extension of wage and rent support subsidies into the fall of 2021—relief offered in response to the coronavirus (COVID-19) pandemic—were announced as part of the 2021 federal budget.

  • The hiring subsidy under the Canada recovery hiring program (CRHP) would provide temporary relief as businesses reopen by offsetting a portion of an employer’s additional remuneration costs resulting from an increase to wages or hours worked or in hiring more staff. This CRHP subsidy would provide eligible employers up to 50% on qualifying remuneration paid to eligible employees until 20 November 2021.
  • The proposed extension of the Canada emergency wage subsidy (CEWS), the Canada emergency rent subsidy (CERS), and lockdown support would apply until 25 September 2021, although subsidy rates for these programs would be reduced beginning in July 2021.
    • Other changes to these programs announced in the 2021 budget would require certain corporations to repay CEWS amounts when certain “highly compensated” executives earned more in the 2021 calendar year than the 2019 calendar year.
    • Under the budget proposals, the government would add qualifying periods to the CEWS, CERS, and lockdown support until 20 November 2021 (if warranted).

Read an April 2021 report [PDF 370 KB] prepared by the KPMG member firm in Canada

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