The Prime Minister of Canada, Justin Trudeau, has announced that the federal wage subsidy program will be extended until the end of 2020. This extension will be valid until December and is meant to give “greater certainty and support” to organizations and businesses as they try to recover from the effects of the pandemic. This is the second extension of the CEWS program. On May 15, the program was extended for 12 weeks.
Canada is already on its way to restore the economy. The announcement will help in faster recovery of jobs that people lost after the coronavirus lockdown measures. Canadians, as well as immigrants who are out of work, will be able to secure jobs faster and get back on their feet. Moreover, provinces and territories are also considering a “safe restart program” that will provide a helping hand to skilled candidates.
Role of CEWS:
The Canada Emergency Wage Subsidy (CEWS) came into existence back in March in order to reduce any financial burdens that businesses might face during the COVID-19 pandemic. A primary adjective of the program is to provide an incentive to businesses that were affected by the pandemic to hire laid-off workers again and refrain from future layoffs.
The Canadian government aim to achieve the goals of the program by offering a 75% wage subsidy to eligible businesses. Non-profits and businesses were considered to be eligible for the subsidy if they suffered a revenue reduction of 30%. The government has expanded the CEWS budget to $82.3 billion.
The business community appreciates the extension of the CEWS, but there has been some criticism about the eligibility requirements. Hopefully, more businesses will be able to access the advantages. The government has already taken the initiative and decided to adjust the eligibility requirements.