Canada Will Pay 75% Of Wages For Businesses To Keep Workers On The Payroll (VIDEO)
More is being done to help businesses in Canada and their employees across the country. Canada's wage subsidy is being bumped up to 75% because of COVID-19 closures and slowdowns, the Prime Minister announced. He hopes this will allow businesses to re-hire laid-off employees.
Outside of Rideau Cottage on March 27, Justin Trudeau once again spoke to Canadians about what the government is doing during this pandemic.
"It's becoming clear that we need to do more, much more," he said.
Now, Canada will be covering 75% of wages for qualifying small and medium-sized businesses across the country.
That's an increase from the previously announced 10% wage subsidy.
Trudeau said that neighbourhood spots are what make communities feel like home and many have had to close because of the pandemic.
With this subsidy, the Prime Minister hopes that businesses can keep employees on and even re-hire ones that had to be let go.
"We're helping companies keep people on the payroll so that workers are supported and the economy is positioned to recover from this," he said.
This 75% subsidy will be backdated to March 15.
"We're going to be here for you," Trudeau said. "Please keep your workers on the payroll or consider hiring them back."
PM Trudeau announces new aid for businesses affected by COVID-19: - wage subsidy increased from 10% to 75% - Canad… https://t.co/hUXz3r311r— CPAC (@CPAC) 1585323322
According to the Canada Revenue Agency, the previous wage subsidy of 10% that was announced to help Canadians with the economic impact of COVID-19 had certain parameters and criteria that needed the be met.
For instance, eligible employers were ones that paid salaries or wages to employees or were a non-profit organization, a registered charity, or a Canadian-controlled private corporation.
There was also a maximum of $25,000 per employer with the previous subsidy.
During his press conference, Trudeau didn't confirm what qualifies a business for the 75% wage coverage or other details about it but had a message for workers.
"Focus on the things you need to do today and know that your job will be there," Trudeau said. He suggested that Canadians not worry about the future too much right now since there is enough to worry about today.
"Small and medium-sized businesses are the backbone of the economy," Trudeau said.
While all the specifics haven't been worked out just yet, Trudeau said that more details will be rolled out and announced by March 30.