Prime Minister Justin Trudeau says the federal wage-subsidy program for employers hit by COVID-19 will have looser standards than previously announced.
Rather than having to show a 30-per-cent decline in revenues, employers can now show a 15-per-cent decline in March revenues, and can compare their revenues to previous months rather than the previous year.
“Because most of us only felt the impact of COVID-19 halfway through the month,” he said. “The subsidy would be on 75 per cent of employees’ salaries, up to $847 a week per employee, retroactive to March 15, for companies big and small.”
Speaking on Wednesday, Trudeau added charities can also choose whether to include revenues from governments in their calculations when they apply for the subsidy.
That as he says businesses need to survive and workers need to get paid if the economy is to “come roaring back after this crisis.”
The government has also announced temporary changes to the Canada Summer Jobs program, allowing employers who hire summer students to apply for a subsidy of up to 100 per cent of the provincial or territorial hourly minimum wage.
This is expected to create up to 70,000 jobs for Canadians between the ages of 15 and 30, giving them work experience and an income despite the current economic situation.
“Our government understands that not all businesses operate the same way,” Trudeau said. “We will keep listening, but we really hope you will use this help from your country and from your fellow citizens to rehire and pay your workers.”
Legislation for the expanded wage subsidy program must be passed in Parliament, but a date has not yet been set for MPs to be recalled to Ottawa. Trudeau says he is calling on the opposition bring back the House ‘as soon as possible’ to enact these changes.
Having spent the last month largely in self-isolation, Trudeau will be attending this afternoon’s cabinet meeting in person.
The government has also yet to offer its pandemic predictions for case spread, but Trudeau is forecasting that the March job numbers – which will be released on Thursday – will be grim.
– With files from the Canadian Press
