OTTAWA — Get able to rehire workers: that was the message from Finance Minister Invoice Morneau on Wednesday as he revealed new particulars concerning the Canadian Emergency Wage Subsidy (CEWS).
The CEWS, first introduced final week, will present a wage subsidy of 75 per cent to companies that face an interruption in income on account of shutdowns and closures brought on by the COVID-19 pandemic.
On Wednesday, Morneau introduced the subsidy will probably be obtainable to Canadian companies “huge and small, people, partnerships, and companies” that aren’t publicly funded and which have seen a 30 per cent or extra decline in gross income since this time final 12 months.
The wage subsidy of 75 per cent will probably be supplied for the primary $58,700 of regular wage as much as a most of $847 every week per worker.
Morneau famous the subsidy will embrace the hospitality sector, which has been notably arduous hit by the pandemic, in addition to non-profit teams and charities that see an analogous decline in income.
Employers will have the ability to apply on-line by a Canada Income Company portal that can launch quickly, and Morneau stated funds will probably be obtainable in roughly six weeks.
The income decline of 30 per cent or extra required to use will probably be decided by evaluating revenues to the identical month final 12 months for March, April or Could, and companies might want to reapply every month.
“As an employer, you will must attest that you just’re doing all the things you may to pay the remaining 25 per cent of your employees’ revenue,” Morneau stated.
“We all know this won’t all the time be doable, however the system will probably be versatile, as a result of what’s most vital is that Canadians can come again to work.”
Morneau additionally stated there will probably be penalties for any companies which might be caught abusing the system.
“On this time of disaster, anybody who makes an attempt to make use of this cash for fraudulent functions will face extreme penalties,” he stated. “This can be a high-trust system we’re setting up and we are going to take decisive motion in opposition to anybody who breaks that belief.”
It’s estimated the CEWS will value $71 billion and scale back the price of the beforehand introduced Canadian Emergency Response Profit (CERB) to $24 billion. The CERB will present $2,000 per thirty days for as much as three months for Canadian employees who’ve misplaced their supply of revenue because of the COVID-19 pandemic.
“Ensuring Canadians really feel safe of their jobs is a lift to confidence all of us want on this difficult time. It’s a sense of hope that life will get higher at the same time as we cope with stress and illness,” Morneau stated.
“The Canadian authorities will be sure households have an honest revenue and that companies keep sturdy and able to get again to work once we rise from this disaster.”
The federal authorities additionally supplied extra particulars Wednesday on the CERB, together with the confirmed launch date for the appliance technique of April 6.
The web site the place Canadians can apply has been launched at canada.ca/coronavirus-cerb and now has extra info on eligibility standards.
Employment Minister Carla Qualtrough stated Wednesday the profit will probably be collectively administered by Service Canada and the Canada Income Company.
“It will leverage the Authorities of Canada’s two largest cost techniques aligned for extra well timed and correct supply of this vital emergency profit,” she stated,
When making use of, Canadians can select direct deposit, which is able to arrive between three and 5 days after they apply, or by cheque, which is able to take roughly 10 days.
Qualtrough stated those that will probably be eligible ought to open an account with Service Canada or with the Canada Income Company earlier than Monday.
To scale back the pressure on the system, the federal government is asking Canadians to use to the CERB primarily based on their birthdates: these born in January, February and March are to use on April 6, these born in April, Could and June are to use on April 7, these born in July, August or September are to use on April eight and people born in October, November or December are to use on April 9. The federal government says this method won’t have an effect on when folks get their funds.
For Canadians who’ve already utilized for EI, there is no such thing as a must re-apply — all these functions will probably be mechanically enrolled within the CERB, Qualtrough stated, including that anybody who utilized for EI after March 15 will obtain the CERB cost, not EI.
Qualtrough stated there have been 1.three million EI requests filed within the final two weeks, and, for comparability, in 2019 there have been 2.1 million requests filed in the whole 12 months.
She stated the federal government is doing what it will probably to get by them, together with pulling folks out of retirement, and has up to now processed greater than 330,000 claims.
“Within the house of some weeks Service Canada has developed a streamlined course of that beginning at the moment will have the ability to mechanically course of roughly 400,000 functions per day,” she stated.
“Meaning the backlog of COVID-19-related functions will probably be addressed within the subsequent week and will additionally imply that some Canadians who’ve already utilized by EI will start receiving their CERB cost over the course of the following few days.”
Additionally on Wednesday, Well being Ninister Patty Hajdu introduced Well being Canada has launched an app the place Canadians can get up-to-date info on the COVID-19 pandemic in Canada, together with recommendation for stopping the unfold of the coronavirus, vital contact info, steerage for looking for medical assist and a symptom-checker.
The app is known as Canada COVID-19 and is accessible from the Apple and Google app shops.
As well as, Hajdu stated the federal government will launch a web based mental-health toolkit to assist Canadians who’re scuffling with nervousness, melancholy or different mental-health points.