To help businesses emerge out of the pandemic, the government introduced the new Canada Recovery Hiring Program (CRHP) to provide businesses with a subsidy of up to 50% on the incremental remuneration paid to eligible employees between June 6, 2021 and November 20, 2021.
The subsidy was determined by the following formula:
A x (B-C)
A = recovery wage subsidy rate;
B = total current period remuneration;
C = total base period remuneration (March 14 to April 10, 2021)
Period 17 June 6 – July 3 |
Period 18 July 4 – July 31 |
Period 19 August 1 – August 28 |
Period 20 August 29 – September 25 |
Period 21 September 26 – October 23 |
Period 22 October 24 – November 20 |
|
| Recovery Wage Subsidy Rate | 50% | 50% | 50% | 40% | 30% | 20% (will change to 50% see below) |
Proposed Changes
The government will increase the subsidy rate to 50% from October 24 to November 20, 2021. They plan to keep this 50% subsidy rate past November 20, 2021, until May 7, 2022.
What’s staying the same?
The existing baseline period of March 14 to April 10, 2021, would continue to be used.
The existing eligibility rules would also continue to apply, including the required revenue decline of more than 10%.
