On July 17th the Government of Canada announced an extension of the Canada Emergency Wage Subsidy (CEWS). The proposed changes would extend the CEWS until December 19, 2020, including redesigned program details until November 21, 2020.
Under this proposal, the subsidy would be accessible to a broader range of employers by including employers with a revenue decline of less than 30% and providing a gradually decreasing base subsidy to all qualifying employers as indicated in the chart below.
Top Up Subsidy
The proposed changes would also introduce a top-up subsidy of up to an additional 25% for employers that have been most adversely affected by the pandemic.
Employers that have experienced a 3-month average revenue drop of more than 50% would be eligible for the top-up under the proposed legislation equal to 1.25 the average revenue drop in excess of the 50% to a maximum of 25% per the chart below.
These changes would apply to all active employees while a separate CEWS rate structure would apply to any furloughed employees.
More information will follow when the proposed legislation is passed. Learn more at the Government of Canada’s website.