Since March, the Canada Emergency Wage Subsidy has protected more than 4 million jobs, helping businesses and workers through the challenges of the pandemic.
Today, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, announced that the government has concluded the necessary regulatory changes to raise the maximum wage subsidy rate to 75 per cent for the period beginning Sunday, December 20, 2020, until March 13, 2021. This support will be there for workers and businesses through the tough months ahead as we face the second wave of the COVID-19 pandemic.
The wage subsidy is now more flexible and targeted, allowing employers to access the maximum subsidy rate based on a single month’s revenue decline instead of having to demonstrate three months’ decline, giving employers support that better reflects their current or evolving needs.
The wage subsidy will continue to support workers at businesses of every size, across Canada. The government will monitor health and economic conditions to determine details for subsequent periods.
Analysis in the Fall Economic Statement demonstrates that government support measures offset about half of the negative economic effects of the pandemic on the unemployment rate. This support has helped Canada to recover almost eight in ten of the lost jobs, compared to just over half in the United States.