Government provides update on support for furloughed employees under the Canada Emergency Wage Subsidy
September 25, 2020 - Ottawa, Ontario - Department of Finance Canada
The Canada Emergency Wage Subsidy has been protecting jobs by helping businesses keep employees on the payroll and encouraging employers to re-hire previously laid off workers.
Today, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, is proposing to extend the current treatment of furloughed employees under the wage subsidy program for the upcoming four-week period, from September 27 to October 24, 2020.
This means employers who qualify for the wage subsidy would be able to continue to claim up to a maximum benefit of $847 per week per employee to support remuneration of their furloughed workers until October 24, 2020.
For the following periods, the government will review the wage subsidy program in light of ongoing progress in fighting COVID-19 as well as any adjustments needed to facilitate the extension of the wage subsidy into 2021 as committed in the Speech from the Throne.
The government continues to assess and respond to the impacts of COVID-19 and make sure programs are providing the support Canadians need. The significant support the government is providing will ensure a stronger, fairer, and more resilient future for Canada.
“As Canadians continue to fight COVID-19, we know we need to keep supporting workers. The wage subsidy has been helping protect more than 3.5 million jobs at businesses of every size, in every corner of this country. It has also been a crucial tool to protect the connection between employers and employees, including furloughed employees.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
The government introduced the Canada Emergency Wage Subsidy in order to prevent further job losses, encourage employers to rehire workers previously laid off as a result of COVID-19, and help better position Canadian companies and other employers to more easily resume normal operations following the crisis.
Since its launch, over 3.5 million Canadian employees have had their jobs supported through the CEWS with more than $35 billion paid out in wage subsidies as of September 13, 2020.
On July 17, 2020, the government announced a redesigned Canada Emergency Wage Subsidy that expanded and extended the program. The redesigned wage subsidy set the rate structure for employers out to November 21, 2020, and established a separate Canada Emergency Wage Subsidy benefit structure that would apply to furloughed employees up until August 29, 2020.
On August 21, 2020, the government announced the extension of this treatment of furloughed employees under the wage subsidy to September 26, 2020.
- Government of Canada announces plan to help support Canadians through the next phase of the recovery
- Government extends Canada Emergency Wage Subsidy support for furloughed employees for four weeks
- Supporting Canadian workers and businesses with a redesigned Canada Emergency Wage Subsidy
- Canada’s COVID-19 Economic Response Plan
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Deputy Prime Minister's Office
Department of Finance Canada
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