Backgrounder: Other Government of Canada support for apprentices


Other Government of Canada support for apprentices

The Government of Canada makes several other investments in apprenticeship to help Canadians become certified. These include loans, tax credits, Employment Insurance (EI) benefits (during in-school training), project funding and support for the Red Seal program. Additionally, the Government is working with the provinces and territories to harmonize apprenticeship training requirements in targeted Red Seal trades.

  • The Apprenticeship Incentive Grant is a taxable grant of $1,000 per year, up to a maximum of $2,000 per person, available to registered apprentices once they have successfully finished their first or second year or level (or equivalent) of an apprenticeship program in a designated Red Seal trade.
  • The Apprenticeship Completion Grant is a taxable grant of a maximum of $2,000 available to registered apprentices who have successfully completed their apprenticeship training and obtained their journeyperson certification in a designated Red Seal trade.
  • The Canada Apprentice Loan provides interest-free loans of up to $4,000 per period of technical training to help registered apprentices in Red Seal trades with the costs of training.
  • Apprentices are also supported through the EI program (Part I). Eligible apprentices can receive up to 55 percent of their average insurable weekly earnings (up to a maximum benefit rate of $547 per week in 2018) in EI regular benefits during periods of unemployment while attending full-time technical training.

    • Apprentices may also be eligible for benefits and supports under Part II of the EI Act, which are delivered by the provinces and territories under the Labour Market Development Agreements. Under these agreements, financial assistance can be provided to eligible individuals to defray basic living costs and training costs, including tuition.
    • The EI program also allows employers to top up their employees’ EI benefits to a maximum combined total of 95 percent of the employee’s normal weekly wage through a supplementary unemployment benefit (SUB) plan. In-class technical training by apprentices could be included in an SUB plan.
  • The Tradesperson’s Tools Deduction allows tradespersons to deduct from their income part of the cost of eligible tools they must acquire as a condition of employment.
  • The fees eligible for the Tuition Tax Credit include occupational, trade and professional examination fees required to obtain a professional status, or certification or license in order to practice a profession or trade in Canada.
  • The Apprenticeship Job Creation Tax Credit encourages employers to hire new apprentices in eligible trades by providing a tax credit of 10 percent of the wages payable to eligible apprentices in the first two years of their apprenticeship program (up to a maximum credit of $2,000 per apprentice, per year).
  • The Union Training and Innovation Program supports union-based apprenticeship training, innovation and enhanced partnerships in the Red Seal trades. The program provides $25 million annually to support unions by sharing the cost of training equipment. It also supports innovative approaches to improve apprenticeship outcomes. A key component of this program is to support women, Indigenous peoples, newcomers, people with disabilities and racialized people to enter and succeed in the trades.

Budget 2018 announced two other initiatives:

  • a pre-apprenticeship program: $46 million over five years, starting in 2018–19, with $10 million per year ongoing, to encourage groups facing barriers to explore career in the skilled trades, gain work experience, make informed career choices, and develop the skills needed for the trades; and
  • the Women in Construction Fund: $10 million over three years, starting in 2018–19, to support projects building on existing models that have proven to be effective in attracting women to the trades, such as mentoring, coaching and tailored supports.
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