Businesses and non-profit organizations seeing a drop of at least 30 per cent in revenue due to COVID-19 will qualify for the government’s 75 per cent wage subsidy program, Prime Minister Justin Trudeau announced today.
Businesses and non-profit organizations seeing a drop of at least 30 per cent in revenue due to COVID-19 will qualify for the government’s 75 per cent wage subsidy program, Prime Minister Justin Trudeau announced today — adding that “serious consequences” await those who abuse the system.
During the daily media briefing outside his residence at Rideau Cottage, Trudeau said the number of people a business employs will not determine its eligibility. Charities and companies big and small will qualify, he said.
For those companies experiencing a decrease in revenues of at least 30 per cent, the government will cover up to 75 per cent of a salary on the first $58,700, which could mean payments of up to $847 a week. The prime minister also encouraged businesses to top up their employees wages with the remaining 25 per cent of their salaries.
Prime Minister Justin Trudeau has announced that businesses and non-profit organizations seeing a drop of at least 30 per cent in revenue due to COVID-19 will qualify for the government’s 75 per cent wage subsidy program. 1:54
Trudeau said the wage subsidies will be retroactive to March 15, 2020.
More details of the program will be unveiled tomorrow by Finance Minister Bill Morneau.
Trudeau also said that the program must operate on a basis of good faith and trust — and warned that there will be “serious consequences” for those who abuse it.
“We are trusting you to do the right thing,” he said. “If you have the means to pay the remaining 25 per cent that is not covered by the subsidy, do it.
“And if you think this is a system you can game or take advantage of, don’t.”
Trudeau said there will be measures in place to prevent exploitation but added that, in a time of “unprecedented” emergency, the government had to act quickly.
He said those who do take advantage of the program will face “stiff consequences” from society and the government.
The Canadian Federation of Independent Business (CFIB) said it’s pleased the government appears ready to keep the administrative requirements light to ensure the money flows swiftly.
“We stand ready to support government with any retroactive measures needed to address anyone found cheating the intent of this or other support programs,” says a statement from CFIB.
While more details on the wage subsidy program are “urgently needed,” the CFIB said the approach announced by Trudeau today will give “significant relief” to tens of thousands of employers and hundreds of thousands of employees.
“The decision to make the wage subsidy widely available to employers of all sizes and structures is the right approach given the unique nature of the COVID-19 pandemic,” the statement re