Ottawa expands the rules of the wage subsidy

Photo: Cole Burston, The canadian Press
“Currently, about one private sector worker on four benefits of the wage subsidy. This is not nothing,” said Bill Morneau.

Saying that listening to the needs and criticisms of the employers, the federal government unveiled on Friday a version extended and expanded its program of wage subsidy emergency in order to help more businesses and be more generous with respect to the most affected by the crisis of the sars coronavirus.

As was already indicated in the beginning of the week, prime minister Trudeau, the new version of the wage subsidy Program emergency of Canada (SSUC) would be once again extended, this time until 19 December, rather than stopping at the end of the month of August.

Ottawa intends to expand also the admission requirements of the program and make it more generous for the companies most affected by the crisis. These new rules, which would apply at least for the period from 5 July to 21 November, would extend the assistance offered to businesses which have suffered loss of income, lower than the current threshold of 30 %. They would come also with up to 25 % of additional grants for those who suffered losses above 50 %.

Currently, about a private sector worker on four benefits of the wage subsidy. This is not nothing.

— Bill Morneau

“The result of the adjustments that we propose, the SSUC will continue to meet the needs of Canadians while facilitating the growth as the local economies continue their progressive reopening,” said Bill Morneau at the time of submitting the proposed changes. The canadian minister of Finance has said, at a press conference, always in discussion with the opposition parties in order to find the majority necessary for their adoption. To do this, the federal government has confirmed its intention to recall the House of commons.

83.6 billion,

Proportional to the losses incurred, the basic subsidy in the beginning of the period may be of few dollars only by employees up to 60 % of wages in the form of questions with a weekly maximum permit 677 $ per employee. This base grant would decrease gradually from the month of September up to a proportion of 20 % and an amount up to a maximum of $ 226. Additional assistance for businesses affected would also increase in proportion to the magnitude of the losses suffered, those who have seen their turnover decline of 70 % or more who is entitled to total grant funding of 85 % of wages up to a weekly maximum allowed $ 960 per worker. This extra help would start to decrease from the month of September she too, for a maximum total of grants 508 $ per week and per employee.

Under this new form, the wage subsidy program would have a total of 83.6 billion this year, a little more than 82,3 billion Bill Morneau had mentioned last week in his economic overview. At 13 July, the programme, which entered into force in mid-march, had claimed that 20.4 billion, largely, according to critics of the business community, because its rules were too restrictive and because the Delivery of canadian emergency (PCU) proved far more popular.

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“Currently, about one private sector worker on four benefits of the wage subsidy. This is not nothing, ” said Bill Morneau. As for the PKU, he said continue to work to determine the rules from the month of September so that it can continue to provide the required assistance to people in need, but also that the service, the SSUC and the employment insurance program complement each other.

Welcome

The spokesperson of employers were quite satisfied with the proposed changes to the wage subsidy. “The extension and widening of the eligibility criteria of the program are the requests that the CPQ has done on several occasions,” recalled the new president and chief executive officer of the Conseil du patronat du Québec, Karl Blackburn.

We got the same sound of bell on the side of the SMES. “There was a relaxation of the rules for a long time and it is reassuring to know that we can rely on the program at least until December “, said in a telephone interview with the Duty, Jasmin Guénette, vice-présidentde the canadian Federation of independent business. Only downside, the calculations proposed by the ministreMorneau to determine the amount of subsidy to which it would be entitled to appear, at first sight, quite complicated for the modest means which often have the most small businesses.

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