To make the top-up subsidy more responsive to sudden changes in revenue, the revenue-decline test for the base subsidy and the top-up subsidy would be harmonized from September 27 onward.
Instead of using the current three-month revenue-decline test for the top-up subsidy, both the base and top-up would be determined by the change in an eligible employer’s monthly revenues, year-over-year, for either the current or previous calendar month.
This means an employer with a 70 per cent or greater revenue loss in a period would be eligible for a 65 per cent wage subsidy.
Included is an extension of the funding until June 2021, from its original end date on December 19th, 2020.
The wage subsidy includes a base subsidy for all employers whose revenues have been impacted by the pandemic. The base subsidy rate for Period 8 (September 27 to October 24, 2020) would continue to apply for Periods 9 and 10 (October 25 to December 19, 2020). As such, the maximum base subsidy rate would be set at 40 per cent for this period. Table 1, below, shows the new rate structure of the base subsidy.
| Table 1 New Rate Structure of the Base Subsidy, Periods 8-10 | |||
| Timing | Period 8: September 27 – October 24 | Period 9: October 25 – November 21 | Period 10: November 22 – December 19 |
| Maximum weekly benefit per employee | Up to $452 | Up to $452 | Up to $452 |
| Revenue drop | |||
| 50% and over | 40% | 40% | 40% |
| 0% to 49% | 0.8 x revenue drop (e.g., 0.8 x 20% revenue drop = 16% base subsidy rate) | 0.8 x revenue drop (e.g., 0.8 x 20% revenue drop = 16% base subsidy rate) | 0.8 x revenue drop (e.g., 0.8 x 20% revenue drop = 16% base subsidy rate) |
For information on if you are eligible, and for how to apply, click here.
For background information on the program, click here.