As many Canadians return to work following the easing of restrictions across the country, the federal government has decided to extend the duration of its wage subsidy program to December.
On Monday, Prime Minister Justin Trudeau announced the federal government’s extension of the wage-subsidy program, after boosting its budget to $82.3 billion last week. The wage subsidy program covers up to 75% of an employee’s wages, up to a maximum of $847 per week for companies and non-profits which meet the eligibility criteria.
Initially, the wage subsidy program was rolled out in order to mitigate the economic fallout faced by many Canadian businesses amid the mandatory shutdowns stemming from the coronavirus pandemic. However, more Canadians opted for the Canada Emergency Response Benefit (CERB) instead, and the demand for the wage subsidy program declined as a result.
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As of July 5, the CERB has paid out nearly $54.8 billion to 8.25 million eligible Canadians, with the budget being boosted to $80 billion. Given that the CERB is slated for phase-out by the fall, the wage subsidy program will likely see an increase in applications as many Canadians are looking to return to work, according to Finance Minister Bill Morneau.
Information for this briefing was found via Bloomberg and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
