How the subsidies were calculated

How the subsidies were calculated

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Revenue drop calculations

You can use an online calculator to calculate a past revenue drop:

Or, read the details of how the claim period and 12-month-average revenue drops were calculated for the wage and rent subsidies as of July 2020.

Wage subsidy calculations

The wage and hiring subsidies were provided through four programs with different calculations.

THRP wage subsidy calculation

For each claim period, the wage subsidy amount under the THRP equals (A × B) − CA multiplied by B minus C, where:

  • A
    The total amount of eligible remuneration you paid to all your eligible employees for the current claim period. For each eligible employee, for each week in the claim period, the amount is the least of the following:
    • the amount of eligible remuneration paid to each employee for that week
    • $1,129
    • if the employee is a non-arm’s-length employee, the pre-crisis remuneration of the employee determined for that week
    • if the employee is on leave with pay that week, $0
  • multiplied by B
    The appropriate rate for the claim period you are applying for
    • THRP rates by claim period and revenue drop
      Claim period Claim period revenue drop Subsidy rate
      22 and 23 75% and over 75%
      40 to 74.99% same as claim period revenue drop
      less than 40% 0%
      24 to 26, if you
      are a qualifying tourism
      and hospitality entity
      75% and over 75%
      40 to 74.99% same as claim period revenue drop
      less than 40% 0%
      24 to 26, if you
      were subject to a
      qualifying public health restriction
      or qualifying partial
      (capacity-limiting)
      public health restriction
      75% and over 75%
      25 to 74.99% same as claim period revenue drop
      less than 25% 0%
      27 and 28 75% and over 37.5%
      40 to 74.99% claim period revenue drop ÷ 2
      less than 40% 0%
  • minus C
    The total of all amounts received by eligible employees for the claim period as a Work-Sharing program benefit under the Employment Insurance Act

There was no overall limit on the total wage subsidy amount that an eligible employer could claim.

HHBRP wage subsidy calculation

For each claim period, the wage subsidy amount under the HHBRP equals (A × B) − CA multiplied by B minus C, where:

  • A
    The total amount of eligible remuneration you paid to all your eligible employees for the current claim period. For each eligible employee, for each week in the claim period, the amount is the least of the following:
    • the amount of eligible remuneration paid to each employee for that week
    • $1,129
    • if the employee is a non-arm’s-length employee, the pre-crisis remuneration of the employee determined for that week
    • if the employee is on leave with pay that week, $0
  • multiplied by B
    The appropriate rate for the claim period you are applying for
    • HHBRP rates by claim period and revenue drop
      Claim period Claim period revenue drop Subsidy rate
      22 to 26 75% and over 50%
      50 to 74.99% 10% + (revenue decline − 50%) × 1.6
      less than 50% 0%
      27 and 28 75% and over 25%
      50 to 74.99% 5% + (revenue decline − 50%) × 0.8
      less than 50% 0%
  • minus C
    The total of all amounts received by eligible employees for the claim period as a Work-Sharing program benefit under the Employment Insurance Act

There was no overall limit on the total wage subsidy amount that an eligible employer could claim.

CRHP calculation

For each claim period, the subsidy amount under the CRHP equals (A − B) × CA minus B multiplied by C, where:

  • A
    The total amount of eligible remuneration you paid to all your active eligible employees for the current claim period. For each active eligible employee, for each week in the claim period, the amount is the least of the following:
    • the amount of eligible remuneration paid to each employee for that week
    • $1,129
    • if the employee is a non-arm’s-length employee, the pre-crisis remuneration of the employee determined for that week
    • if the employee is on leave with pay that week, $0
  • minus B
    The total amount of eligible remuneration you paid to all your active eligible employees for the base period (March 14 to April 10, 2021). For each eligible employee, for each week of the claim period, the amount is the least of the following:
    • the amount of eligible remuneration paid to each employee for that week
    • $1,129
    • if the employee is a non-arm’s-length employee, the pre-crisis remuneration of the employee determined for that week
    • if the employee is on leave with pay that week, $0
  • equals
    Increase in employee pay (incremental remuneration)
  • multiplied by C
    Flat rate for the claim period you are applying for
    • Flat rate for the claim period you are applying for
      Subsidy rate Claim period
      50% 17 (June 6 to July 3, 2021)
      50% 18 (July 4 to July 31, 2021)
      50% 19 (August 1 to August 28, 2021)
      40% 20 (August 29 to September 25, 2021)
      30% 21 (September 26 to October 23, 2021)
      50% 22 and later (October 24, 2021 to May 7, 2022)

There was no overall limit on the total wage subsidy amount that an eligible employer could claim.

CEWS calculation

If you need historical information about calculating the CEWS, refer to calculating the wage subsidy in the CEWS technical questions and answers.

Rent subsidy calculations

The rent subsidy was provided through three programs with different calculations, and included a lockdown support top-up.

THRP rent subsidy rate calculation

THRP rates by claim period and revenue drop
Claim
period
Claim period
revenue drop
Subsidy rate
22 and 23 75% and over 75%
40 to 74.99% same as claim period revenue drop
Example: 60% revenue drop = 60% subsidy rate
less than 40% 0%
24 to 26, if you are
a qualifying tourism
and hospitality entity
75% and over 75%
40 to 74.99% same as claim period revenue drop
Example: 60% revenue drop = 60% subsidy rate
less than 40% 0%
24 to 26, if you were
subject to a qualifying
public health restriction
or qualifying partial
(capacity-limiting) public health restriction
75% and over 75%
25 to 74.99% same as claim period revenue drop
Example: 30% revenue drop = 30% subsidy rate
less than 25% 0%
27 and 28 75% and over 37.5%
40 to 74.99% claim period revenue drop ÷ 2
Example: 60% revenue drop ÷ 2 = 30% subsidy rate
less than 40% 0%

HHBRP rent subsidy rate calculation

HHBRP rates by claim period and revenue drop
Claim
period
Claim period
revenue drop
Subsidy rate
22 to 26 75% and over 50%
50 to 74.99% 10% + (revenue drop − 50%) × 1.6
Example: 10% + (60% revenue drop − 50%) × 1.6 = 26% subsidy rate
less than 50% 0%
27 and 28 75% and over 25%
50 to 74.99% 5% + (revenue drop − 50%) × 0.8
Example: 5% + (60% revenue drop − 50%) × 0.8 = 13% subsidy rate
less than 50% 0%

CERS rate calculation

CERS rates by claim period and revenue drop
Claim
period
Claim period
revenue drop
Subsidy rate
1 to 10 70% or more 65%
50 to 69.99% (Your revenue drop - 50%) x 1.25 + 40%
Less than 50% 0.8 x your revenue drop
11 70% or more 60%
50 to 69.99% (Your revenue drop – 50%) x 1.25 + 35%
10.01 to 49.99% (Your revenue drop – 10%) x 0.875
10% or less 0%
12 and 13 70% or more 40%
50 to 69.99% (Your revenue drop – 50%) x 0.75 + 25%
10.01 to 49.99% (Your revenue drop – 10%) x 0.625
10% or less 0%
14 70% or more 20%
50 to 69.99% (Your revenue drop – 50%) x 0.5 + 10%
10.01 to 49.99% (Your revenue drop – 10%) x 0.25
10% or less 0%

Lockdown support rent subsidy top-up amount

In addition to the rent subsidy rate, you may have received a lockdown support top-up for locations affected by a public health restriction. Lockdown support was calculated on a location-by-location basis.

The lockdown support rate was 25%, calculated as:

Example lockdown support rate calculation

For example, if one of your business locations was affected by a public health restriction for 7 days during the 28 day period, you would have been eligible to receive:

  • 25% base lockdown support top-up rate multiplied by
  • 7 days out of 28
  • for a 6.25% lockdown support rate.

Claim limits for rent subsidies

The THRP and HHBRP provided a base rent subsidy amount and in some cases, a lockdown support top-up amount.

In each claim period, you could claim eligible expenses up to certain maximum amounts:

Maximum eligible expenses you could claim in each claim period
Maximum eligible expense CERS THRP HHBRP
Per business location $75,000 $75,000 $75,000
Total for all locations
Applies to base rent subsidy only. There was no maximum for the lockdown support top-up.
$300,000 $1,000,000 $1,000,000

If you were part of an affiliated group that applied for a rent subsidy, the maximum amounts for eligible expenses apply to the entire group.

If you had to close or cease certain activities at one or more of your locations under a public health restriction for one week or longer, you may have been eligible for a lockdown support top-up amount of up to 25% of eligible expenses per affected location for the days the restriction was in place in the claim period.

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