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Canada Emergency Wage Subsidy (CEWS)

What the changes are

A proposal has been made to continue the CEWS until June 2021, including possible changes to the rates and top-up calculation. Read the October 14 announcement and check back soon for details.

Periods 5 to 9
July 5 to November 21, 2020

Changes to CEWS as of claim period 5:

  • the subsidy rate varies, depending on how much your revenue dropped
  • if your revenue drop was less than 30% you can still qualify, and keep getting the subsidy as employees return to work and your revenue recovers
  • employers who were hardest hit can qualify for a higher amount
  • employees who were unpaid for 14 or more days can now be included in your calculation
  • use the current period’s revenue drop or the previous period’s, whichever works in your favour
Periods 1 to 4
March 15 to July 4, 2020

For claim periods 1 to 4 (March 15 to July 4, 2020):

  • you must meet a minimum of 15% (period 1) or 30% (periods 2 to 4) revenue drop to qualify for the subsidy
  • if you qualify for a period, you automatically qualify for the following period
  • the subsidy rate is 75% of eligible employees' remuneration, up to a maximum of $847/week per eligible employee
  • employees who were unpaid for 14 or more consecutive days in the period can't be included in your calculation

How the subsidy helps

Get a % of your employees’ pay
per eligible employee
per week

The amount you get per employee is based on your revenue drop.

Examples of how much you may qualify for

Your revenue drop is 60% in period 7
Eligible active employee earns $1,500/week
Using the
period 7 calculation

Base rate:

  • Maximum claim is 50% of $1,129/week
  • $1,129 x 50% = $564.50/week

Top-up:

  • Maximum claim is 1.25 x (your revenue drop % - 50%)
  • 1.25 x (60% - 50%) = 12.5%
  • $1,129 x 12.5% = $141.13/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Your claim for this employee:

  • $564.50 + $141.13 = $705.63/week

Eligible active employee earns $500/week
Using the
period 7 calculation

Base rate:

  • Maximum claim is 50% of $500/week
  • $500 x 50% = $250.00/week

Top-up:

  • Maximum claim is 1.25 x (your revenue drop % - 50%)
  • 1.25 x (60% - 50%) = 12.5%
  • $500 x 12.5% = $62.50/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Your claim for this employee:

  • $250.00 + $62.50 = $312.50/week
Your revenue drop is 30% in period 7
Eligible active employee earns $1,500/week
Using the
period 7 calculation

Base rate:

  • Maximum claim is 1 times your revenue drop % x $1,129/week
  • 1 x 30% = 30%
  • $1,129 x 30% = $337.70/week

Top-up:

  • $0/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Your claim for this employee:

  • $338.70 + $0 = $338.70/week

Eligible active employee earns $500/week
Using the
period 7 calculation

Base rate:

  • Maximum claim is 1 times your revenue drop % x $500/week
  • 1 x 30% = 30%
  • $500 x 30% = $150.00/week

Top-up:

  • $0/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Your claim for this employee:

  • $150.00 + $0 = $150.00/week
Your revenue drop is 60% in period 5 or 6
Eligible active employee earns $1,500/week
Using the
period 5 and 6 calculation
Using the "safe harbour" rule

Base rate:

  • Maximum claim is 60% of $1,129/week
  • $1,129 x 60% = $677.40/week

Top-up:

  • Maximum claim is 1.25 x (your revenue drop % - 50%)
  • 1.25 x (60% - 50%) = 12.5%
  • $1,129 x 12.5% = $141.13/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Rate:

  • Claim is 75% of earnings up to a maximum benefit of $847/week

Your claim for this employee:

  • $677.40 + $141.13 = $818.53/week

Your claim for this employee:

  • $847/week

For this employee, you would use the $847/week subsidy and not the $818/week.


Eligible active employee earns $500/week
Using the
period 5 and 6 calculation
Using the
"safe harbour" rule

Base rate:

  • Maximum claim is 60% of $500/week
  • $500 x 60% = $300.00/week

Top-up:

  • Maximum claim is 1.25 x (your revenue drop % - 50%)
  • 1.25 x (60% - 50%) = 12.5%
  • $500 x 12.5% = $62.50/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Rate:

  • Maximum claim is 75% of $500/week
  • $500 x 75% = $375.00/week

Your claim for this employee:

  • $300.00 + $62.50 = $362.50/week

Your claim for this employee:

  • $375.00/week

For this employee, you would use the $375.00/week subsidy and not the $362.50/week.

Your revenue drop is 30% in period 5 or 6
Eligible active employee earns $1,500/week
Using the
period 5 and 6 calculation
Using the
"safe harbour" rule

Base rate:

  • Maximum claim is 1.2 times your revenue drop % x $1,129/week
  • 1.2 x 30% = 36%
  • $1,129 x 36% = $406.44/week

Top-up:

  • $0/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Rate:

  • Maximum claim is 75% of $1,129.33/week
  • $1,129.33 x 75% = $847.00/week

Your claim for this employee:

  • $406.44 + $0 = $406.44/week

Your claim for this employee:

  • $847.00/week

For this employee, you would use the $847.00/week subsidy and not the $406.44/week.


Eligible active employee earns $500/week
Using the
period 5 and 6 calculation
Using the
"safe harbour" rule

Base rate:

  • Maximum claim is 1.2 times your revenue drop % x $500/week
  • 1.2 x 30% = 36%
  • $500 x 36% = $180.00/week

Top-up:

  • $0/week

Disclaimer: For the purpose of this example,
we are assuming that the three-month top-up revenue drop
was the same as the base revenue drop.

Rate:

  • Maximum claim is 75% of $500/week
  • $500 x 75% = $375.00/week

Your claim for this employee:

  • $180.00 + $0 = $180.00/week

Your claim for this employee:

  • $375.00/week

For this employee, you would use the $375.00/week subsidy and not the $180.00/week.

How you apply

  1. Determine if you are an eligible employer
  2. Determine which employees you can claim the subsidy for
  3. Use the calculator to find out how much subsidy you can claim under the new rules. There are two calculator options:
    • an online calculator
    • a downloadable spreadsheet
  4. Enter the values of your claim, using one of three options:
    • My Business Account
    • Represent a Client (only authorized representatives with level 2 or 3 authorization may use this option)
    • Web Forms application
  5. Get your subsidy in 3 to 5 business days with direct deposit

Get started

The first step is to confirm you are an eligible employer.

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