The new Canada Recovery Hiring Program is designed to support employers by subsidizing payroll expenses as they increase hours or wages, or hire new employees, while continuing to experience declines in revenue compared to pre-pandemic times.
The subsidy amount is up to 50% of the payroll increase (including salaries, wages, commissions and other remuneration paid to employees) between the program's base period (March 14, 2021 to April 10, 2021) and the qualifying period for which the claim is being made (the first is June 6, 2021 to July 3, 2021). Organizations must re-apply for the subsidy at the end of each four-week qualifying period; applicants have 180 days at the end of each qualifying period to file their claim. The maximum remuneration that will be taken into the subsidy calculation is $1,129 per employee per week.
The requirements for this program are largely the same as those for the Canada Emergency Wage Subsidy:
- Eligible employers include Canadian-controlled private corporations, individuals, non‑profit organizations, registered charities, and certain partnerships.
- Applicants must have an account open with the Canada Revenue Agency as of March 14, 2021.
- Applicants must meet the revenue decline thresholds as per the CEWS (more than 0% for the June 6, 2021 – July 3, 2021 qualifying period, and more than 10% for the qualifying period between July 4, 2021, and November 20, 2021). Revenue declines can be calculated using two methods to compare current revenues with pre-COVID revenues.
The subsidy will apply retroactively to all active employees between June 6, 2021 to November 20, 2021.
Organizations can claim either the Canada Recovery Hiring Program or the Canada Emergency Wage Subsidy (not both at the same time).
The subsidy rate will gradually decrease beginning in August , so employers are encouraged to take full advantage of the program by hiring, rehiring and increasing wages/hours as soon as possible.
Learn more about the program by visiting this Government of Canada webpage.