Prime Minister Justin Trudeau announced in one of his daily briefings, Monday morning, that the government will now cover 75% of wages in order to prevent and avoid employees losing their job due to the financial effects of the pandemic.
Now, who is eligible for this new subsidy program?
The PM says that the subsidies will be available for all businesses – big or small. Charities and non-profit organizations can qualify as well. But he is emphasizing that applicants must have suffered at least a 30% decline in revenue due to COVID-19. The PM is highly discouraging businesses to do any unjust moves in order to receive subsidies.
The 75% wage subsidy covered by the government is only for the first $58,700 worth of salary. This means the maximum amount of subsidy payout would be $847 per week. Details on how these payments would be received are still unclear.
Businesses can apply for the program through the CRA, but the date on when this will roll out is still unknown. The purpose of this subsidy program is to ensure employees can keep their jobs and to continuously receive income that they all need to pay for expenses.