Close X
Thursday, November 28, 2024
ADVT 
National

PM: wage subsidy to be extended to December

Darpan News Desk The Canadian Press, 13 Jul, 2020 05:00 PM
  • PM: wage subsidy to be extended to December

The federal government is extending its program to subsidize wages in companies hit hard by the COVID-19 pandemic until December, Prime Minister Justin Trudeau said Monday.

The program is the heart of the government's promise to help Canadians get back to work, even if has to be at a slower pace, as the pandemic wanes.

As of July 6, the wage subsidy had paid out $18.01 billion to 252,370 companies in payroll help.

The government's fiscal and economic "snapshot" last week boosted the budget of the wage subsidy program to $82.3 billion, in a sign of impending changes.

Trudeau isn't saying today how the government will reshape the eligibility rules for the program that critics have said stop some employers from getting aid they need.

The wage-subsidy program covers 75 per cent of wages, up to a weekly maximum of $847, for eligible companies and non-profits.

The Liberals originally saw the wage subsidy as a key tool in helping cushion the economic blow from COVID-19 by helping workers stay tied to their employers as businesses stayed closed due to the pandemic.

Instead, the budget for the program dropped as more workers accessed the Canada Emergency Response Benefit for people who lost their jobs or nearly all their hours.

The $500-a-week benefit had, as of July 5, paid out almost $54.8 billion to 8.25 million people.

The budget for that program is now at $80 billion, but it's scheduled to close in the fall.

Finance Minister Bill Morneau suggested last week that as health restrictions roll back and more companies reopen, more people would shift from the CERB to the wage subsidy. The government has pointed to about 1.2 million fewer people receiving the CERB in May in support of that view.

Morneau spent weeks leading up to July 8's fiscal update getting input from businesses, labour groups and other stakeholders about how to reshape the program.

The government has hinted at changes to revenue-reduction thresholds that may discourage companies from growing, lest they find themselves suddenly cut off from federal aid.

"We need to reduce disincentives to growth," Morneau said last week. "We need to make sure the subsidy is appropriate for the challenges facing enterprises in actually rehiring and getting people back to work."

MORE National ARTICLES

Long-term care system failed elders: report

Long-term care system failed elders: report
A new report on the COVID-19 crisis in long-term care homes has concluded that Canada failed in its duty to protect its elders.

Long-term care system failed elders: report

Flood warnings issued as B.C. rivers surge

Flood warnings issued as B.C. rivers surge
Heavy rainfall has caused rivers to surge across much of British Columbia, washing out roads and putting many communities on alert.

Flood warnings issued as B.C. rivers surge

Teacher in Delta, B.C., charged with child pornography related offences

Teacher in Delta, B.C., charged with child pornography related offences
The RCMP say a school teacher in Delta, B.C., has been charged with child pornography offences.

Teacher in Delta, B.C., charged with child pornography related offences

WE group to stop running federal volunteer program

WE group to stop running federal volunteer program
Youth Minister Bardish Chagger says the WE organization won't manage the federal government's $900-million program to pay students and fresh graduates for volunteer work this summer.

WE group to stop running federal volunteer program

A list of charge rates from police watchdogs

A list of charge rates from police watchdogs
Seven provinces have civilian oversight bodies that investigate incidents of death, serious harm or sexual assault that could be caused by police action or inaction. The remainder rely on police departments or watchdogs from other jurisdictions.

A list of charge rates from police watchdogs

Rideau Hall suspect faces multiple charges

Rideau Hall suspect faces multiple charges
A man who rammed his truck through a gate at Rideau Hall Thursday was loose on the grounds with a gun for 13 minutes before police laid eyes on him, the RCMP said Friday.

Rideau Hall suspect faces multiple charges