The Federal Government increased the 10% wage subsidy for small and medium-sized businesses adversely affected by COVID-19 to a 75% wage subsidy for qualifying businesses. The announced subsidy is intended to be backdated to March 15, 2020.
On March 30, 2020, the Prime Minister announced additional details of the amended wage subsidy program. Eligible businesses – now including non-profits, charities as well as large and small companies – whose revenues have decreased by at least 30% due to COVID-19 will apparently qualify for the subsidy.
The subsidy will cover up to 75% of wages on the first $58,700 that an employee earns, up to a maximum of $847 a week.
The Prime Minister indicated that he hoped these developments would help employers re-hire workers who had previously been laid off, and encouraged employers utilizing the program to “do the right thing”, including paying employees the remaining 25% of wages not covered by the subsidy and ensuring all funds through the program go directly to employees.
Additional specifics of the temporary wage subsidy program and the application process are still pending, and further details will be provided as they become available.
We will continue to update our clients with information as soon as it becomes available. If you have any questions about this topic, other COVID-19 related questions, or would like assistance with developing and/or reviewing pandemic plans, please do not hesitate to contact a Mathews Dinsdale lawyer, or refer to the Firm’s COVID-19 website resources.