The federal government has proposed to extend the Canada Emergency Wage Subsidy (CEWS) until December 19, 2020.
Effective July 5, 2020, the CEWS program would be adapted to make the subsidy available to more employers. The CEWS will now consist of 2 parts:
- A base subsidy: Available to all eligible employers with active employees and a decline in revenue. The subsidy amount varies based on the scale of revenue decline in a specific month.
- A top-up subsidy: Additional subsidy of up to 25% for employers who experience more than a 50% revenue decline in a specific month. An eligible employer’s top-up CEWS would be determined based on the revenue drop experienced when comparing revenues in the preceding 3 months to the same months in the prior year. Under the alternative approach, an eligible employer’s top-up CEWS would be determined based on the revenue drop experienced when comparing average monthly revenue in the preceding 3 months to the average monthly revenue in January and February 2020.
The table below shows the combined base and top-up CEWS rates for those employers that experienced an average revenue drop of 70% or more in the preceding 3 months.