The federal wage and rent subsidies have been officially extended another month, and will now expire Oct. 23. Federal Finance Minister Chrystia Freeland said the country's economy is recovering but uncertainty about the COVID-19 Delta variant means many businesses continue to need help.
"Give credit to the federal government for listening to concerns that recovery continues to be uneven and many businesses, specifically in tourism and travel, will need more time," Chamber CEO Bruce Williams said. "An extra month is helpful, but these businesses will need support until they can fully participate in the recovery."
As well as the extension, the maximum rate for the wage and rent subsidies is 40% for the period between Aug. 29 and Sept. 25. instead of being reduced to 20%, as announced in Budget 2021.
"Eligible employers would still also be able to apply for the new Canada Recovery Hiring Program instead of the wage subsidy if they so choose," states the federal announcement.
The hiring program helps employers hire staff, and increase workers' hours or wages, as their business picks up. The program is available from June 6 until Nov. 20, and is designed to help employers move away from subsidies at their own pace.