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CPCA Bulletin: Canadian Emergency Wage Subsidy Extended Through June 2020

May 8, 2020

Prime Minister Trudeau announced that the government will be extending the Canadian Emergency Wage Subsidy (CEWS) program through June 2020. The Prime Minister did not say how long the program extension will last. Details on the CEWS extension are expected next week.

He also announced the creation of an Industry Strategic Council, chaired by Monique Leroux, to advise the government on the specific needs of sectors impacted by COVID-19.

Emergency Wage Subsidy Details

Available to all Canadian businesses, not-for-profits and charities, that are not publicly funded, facing a revenue decline of at least 15% in March, and 30% in April and May because of COVID-19
Wage subsidy of 75% available on a maximum salary of $58,700 ($847 per week)
Revenue earned in the period is compared to revenue earned in the reference period, the corresponding month in 2019, or the average of the revenue earned in January and February 2020
Businesses will need to reapply for the subsidy each month
Employers will need to attest that they are doing their part to contribute the additional 25% of wages, but Morneau recognized that not all businesses will be able to
Employers found to violate the terms of the program will face severe penalties

Industry Strategic Council

The Council will help the government understand the impact on industries and specific sectoral pressures that COVID-19 has caused. The Department of Innovation, Science, and Economic Development indicated that over the next 90 days, the Council will meet regularly to identify and understand sectoral pressures that are common across the industries.

Members of the Council will be announced soon and will complement the structure and focus of the Economic Strategy Tables.

Advanced Manufacturing
Agri-Food
Clean Technology
Tourism
Digital Industries
Health/Bio-sciences
Resources of the Future

The Industry Strategy Council creates a venue for the government to consult directly across industries.

Visit Governement of Canada Website here.
See the Press Conference here.