Canada Recovery Hiring Program
Recently, the federal government proposed a federal budget that included a new support program for businesses impacted by the COVID-19 pandemic. This new support program is the Canada Recovery Hiring Program (CRHP). The intention of this program is to help businesses grow and recover through the hiring of more employees by providing a subsidy.
The CRHP is included in Bill C-30 which is currently before Parliament, and if approved will help offset a portion of reopening costs for businesses caused by increased employee wages and hours.
The program would provide eligible employers with up to 50% of incremental remuneration paid to eligible active employees between the dates of June 6, 2021, and November 20, 2021.
To qualify for the CRHP, a revenue decline of more than 0 percent between June 6, 2021, and July 3, 2021, is required. Additionally, the revenue must drop a minimum of 10 percent for the periods between July 4, 2021 and November 20, 2021.
Revenue comparison periods
Period | Period 17 | Period 18 | Period 19 | Period 20 | Period 21 | Period 22 |
June 6 – July 3 | July 4 – July 31 | August 1 – August 28 | August 29 – September 25 | September 26 – October 23 | October 24 – November 20 | |
General approach | June 2021 over June 2019 or May 2021 over May 2019 | July 2021 over July 2019 or June 2021 over June 2019 | August 2021 over August 2019 or July 2021 over July 2019 | September 2021 over September 2019 or August 2021 over August 2019 | October 2021 over October 2019 or September 2021 over September 2019 | November 2021 over November 2019 or October 2021 over October 2019 |
Alternative approach | June 2021 or May 2021 over average of January and February 2020 | July 2021 or June 2021 over average of January and February 2020 | August 2021 or July 2021 over average of January and February 2020 | September 2021 or August 2021 over average of January and February 2020 | October 2021 or September 2021 over average of January and February 2020 | November 2021 or October 2021 over average of January and February 2020 |
The criterion for eligibility is similar to the existing Canada Emergency Wage Subsidy (CEWS) program and incremental remuneration for a qualifying period is the difference between total eligible remuneration paid during the qualifying period and total eligible remuneration paid during the baseline. The maximum eligible remuneration per employee that qualifies for the CRHP is $1,129 per week.
Dates used for incremental remuneration calculation
Qualifying period | Period 17 | Period 18 | Period 19 | Period 20 | Period 21 | Period 22 |
Period dates | June 6 to July 3, 2021 | July 4 to July 31, 2021 | August 1 to August 28, 2021 | August 29 to September 25, 2021 | September 26 to October 23, 2021 | October 24 to November 20, 2021 |
Baseline period | March 14 to April 10, 2021 |
Subsidy amount should the employer be eligible
Period | Period 17 | Period 18 | Period 19 | Period 20 | Period 21 | Period 22 |
Period Dates | June 6 – July 3 | July 4 – July 31 | August 1 – August 28 | August 29 – September 25 | September 26 – October 23 | October 24 – November 20 |
Hiring subsidy rate | 50% | 50% | 50% | 40% | 30% | 20% |
Applications for the CRHP will open once Bill C-30 receives Royal Assent and must be made no later than 180 days after the end of the qualifying period.
For more information regarding the CRHP please contact our office at 780-532-4641 or visit https://www.canada.ca/en/department-finance/news/2021/06/helping-hard-hit-businesses-hire-more-workers-with-the-canada-recovery-hiring-program.html.