Prime Minister Justin Trudeau announced today businesses and non-profit organizations seeing a drop of at least 30 per cent in revenue due to COVID-19 will qualify for the government’s 75 per cent wage subsidy program.
The number of people a business employs will not determine its eligibility. Charities and companies big and small will qualify, he said.
For those companies experiencing a decrease in revenues of at least 30 per cent, the government will cover up to 75 per cent of a salary on the first $58,700, which could mean payments of up to $847 a week. The prime minister also encouraged businesses to top up their employees wages with the remaining 25 per cent of their salaries.
Wage subsidies will be retroactive to March 15, 2020.
More details of the program will be unveiled tomorrow by Finance Minister Bill Morneau.
Trudeau also said that the program must operate on a basis of good faith and trust — and warned that there will be “serious consequences” for those who abuse it.
“We are trusting you to do the right thing,” he said. “If you have the means to pay the remaining 25 per cent that is not covered by the subsidy, do it.
Trudeau said there will be measures in place to prevent exploitation but added that, in a time of “unprecedented” emergency, the government had to act quickly.
He said those who do take advantage of the program will face “stiff consequences” from society and the government.
Information obtained from: www.cbc.ca
