Minister of Finance Bill Morneau responds to a question during a news conference in Ottawa, Friday, March 27, 2020. THE CANADIAN PRESS/Adrian Wyld

Minister of Finance Bill Morneau responds to a question during a news conference in Ottawa, Friday, March 27, 2020. THE CANADIAN PRESS/Adrian Wyld

Canada’s 75% wage subsidy is coming, but not for several weeks: finance minister

Subsidy will cost Canada $71 billion, but push down cost of emergency benefit, Morneau said

Businesses hoping to apply for Canada’s 75 per cent wage will have to wait several weeks to get that money, according to Finance Minister Bill Morneau.

Morneau unveiled more details about the wage subsidy that Prime Minister Justin Trudeau has announced, and then updated, in recent days.

The wage subsidy will provide 75 per cent of each employee’s salary for business – of any size – that has lost at least 30 per cent of its gross revenue since this time last year due to COVID-19. Companies will have to reapply every month and Morneau said there will be “severe” consequences for anyone who tries to take advantage of the system.

The subsidy will apply to the first $58,700 of each employee’s salary and provide up to $847 a week per employee for up to 12 weeks, with a possible extension if the crisis continues. The money is available to companies of all sizes, as well as charities and non-profits, and will be retroactive to March 15.

“Funds will be available in approximately six weeks,” the finance minister said Wednesday.

Businesses will be able to apply through a Canada Revenue Agency portal “soon,” Morneau said, and money is supposed to begin flowing in six weeks. For businesses that cannot show revenue from the previous year, the previous month’s revenue may be an option. Companies that are signed up for CRA direct deposit will receive funds faster.

Companies will be required to “show what the pre-crisis income was of an employee and show that they’re paying that employee an amount up to $847 and then they will get that money returned to them from the Canada Revenue Agency.”

Morneau urged businesses to rehire workers and to top up the extra 25 per cent not being provided by the wage subsidy.

“I know in the cases they can afford to pay their workers, they will do that,” he said. “We need to get through this intact.”

The point of the wage subsidy is to get employers to keep workers on the payroll, hopefully leading to a faster economic recovery, the finance minister said. It will not be available to those who receive the Canadian Emergency Response Benefit, which is for workers who remain laid-off, or are self-employed and have no income due to COVID-19.

The wage subsidy is expected to cost $71 billion. The CERB, which provides $2,000 to workers who’ve lost their jobs as a result of COVID-19, will cost an additional $24 billion. Altogether, Morneau said these direct measures will cost around $105 billion.

“As a result of this… the deficit will go up,” Morneau said, noting this equals to about five per cent of the country’s GDP.

READ MORE: Liberals delay release of 75% wage subsidy details, costs

READ MORE: Trudeau says Parliament needs to sit to pass expanded COVID-19 benefits


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nelson has begun 2021 with a small rise in COVID-19 cases. Illustration: BC Centre for Disease Control
Ten new cases of COVID-19 in Nelson area

The cases were reported for the week of Jan. 3 to 9

Zoey Uniat is now three months old. Photo: Submitted
Castlegar baby with rare disorder progressing towards coming home

Fundraiser for Zoey Uniat has raised more than $50,000

Pioneer Arena is closing for the season. Photo: John Boivin
Castlegar’s Pioneer Arena and Nelson Civic Centre closing for season

RDCK is closing the ice at two of its arenas due to financial concerns related to COVID-19

A juvenile sturgeon in a B.C. rearing facility. The wild population in the Upper Columbia is estimated at 1,100 individuals, enhanced with roughly 5,500 hatchery fish. (file photo)
B.C.’s Upper Columbia sturgeon endure long battle with local extinction

Decades of monitoring and intervention is ongoing to save the prehistoric fish

Interior Health update. File photo.
86 new COVID-19 cases, two more deaths in Interior Health

The new deaths are from Heritage Square, a long-term care facility in Vernon

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

Powell River-Sunshine Coast MLA Nicholas Simons was appointed to the NDP cabinet as minister of social development and poverty reduction after the October 2020 B.C. election. (Hansard TV)
B.C. job training fund increased for developmentally disabled

COVID-19 has affected 1,100 ‘precariously employed’ people

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. driver’s licence and identity cards incorporate medical services, but the passport option for land crossings is being phased out. (B.C. government)
B.C. abandons border ID cards built into driver’s licence

$35 option costing ICBC millions as demand dwindles

sdf
2nd in-school violence incident in Mission, B.C, ends in arrest

RCMP notified of local Instagram page with videos (now deleted) showing student assaults, bullying

BC Emergency Health Services has deployed the Major Incident Response Team (MIRRT) as COVID-19 positive cases rise in the Williams Lake region. (Monica Lamb-Yorski photo - Williams Lake Tribune)
B.C.’s rapid response paramedics deployed to Williams Lake as COVID-19 cases climb

BC Emergency Health Services has sent a Major Incident Rapid Response Team to the lakecity

(Phil McLachlan - Black Press Media)
RCMP say ice climber seriously injured after reportedly falling 12 metres near Abraham Lake

Police say man’s injuries were serious but not life-threatening

U.S. military units march in front of the Capitol, Monday, Jan. 18, 2021 in Washington, as they rehearse for President-elect Joe Biden’s inauguration ceremony, which will be held at the Capitol on Wednesday. (AP Photo/J. Scott Applewhite)
Biden aims for unifying speech at daunting moment for U.S.

President Donald Trump won’t be there to hear it

Williams Lake physician Dr. Ivan Scrooby and medical graduate student Vionarica Gusti hold up the COSMIC Bubble Helmet. Both are part of the non-profit organization COSMIC Medical which has come together to develop devices for treating patients with COVID-19. (Monica Lamb-Yorski photo - Williams Lake Tribune)
Group of B.C. doctors, engineers developing ‘bubble helmet’ for COVID-19 patients

The helmet could support several patients at once, says the group

Most Read