UPDATE: APPLICATIONS FOR THIS PROGRAM ARE NO LONGER BEING ACCEPTED. THOSE EMPLOYERS APPROVED THROUGH EARLY 2020 APPLICATIONS CAN PARTICIPATE.
The federal government announced temporary changes to the Canada Summer Jobs program. To encourage small businesses to hire summer staff, they’re going to cover up to 100% of the minimum wage costs (up from 50%).
The boost to the program will help Canadian businesses hire summer help. And help Canadian youth find work in a tough job market impacted by the COVID-19 crisis.
The government estimates the program will cost $263 million, which they say will create up to 70,000 jobs for youth between 15 and 30 years of age.
What Is the Canada Summer Jobs Program?
The Canada Summer Jobs Program previously encouraged employers to hire summer staff by paying up to 50% of the local minimum wage towards their salary.
If you’re an employer that hires summer staff, you can apply for a subsidy that covers up to 100% of the provincial or territorial minimum wage.
The application closed at the end of February, but it will re-open for organizations that provide essential services.
Job placements could begin as early as May 11, 2020 and end as late as February 28, 2021, since many businesses were forced to scale back their operations and jobs may start later than usual.
Employers will also be able to employ student hires part-time.
Does My Business Qualify?
If you’re a private sector employer:
- You must have 50 or fewer full-time employees across Canada to be eligible for Canada Summer Jobs funding.
- Full-time employees are those working 30 hours or more per week.
- Unincorporated and incorporated businesses both qualify, which includes partnerships and sole proprietorships.
To receive the subsidy, you must apply for approval from Service Canada before hiring anyone.
How Do I Apply?
Employers will have to submit an application to be approved for the subsidy.
What Information Will I Need?
Some of the information you will need for your application includes:
- The date that you want the youth to begin employment. The earliest start date is May 11, 2020. The job’s latest end date is February 28, 2021.
- The number of weeks for which you are requesting funding; it must be between six and sixteen weeks. You are encouraged to employ the youth longer than the requested number of weeks.
- The number of hours per week that the youth will be required to work; it must be between 30 and 40 hours per week. The salary must respect minimum wage requirements in your province or territory.
The salary must respect minimum wage requirements in your province or territory.
Minimum Wage in Canada
Province or Territory Minimum Hourly Wage*
$15.00 (as of October 1, 2018). Note that Alberta has a separate minimum hourly wage for students under 18 ($13.00).
$13.85 (as of June 1, 2019) and $14.60 (as of June 1, 2020)
$11.65 (as of October 1, 2019)
$11.50 (as of April 1, 2019)
Newfoundland and Labrador
$11.40 (as of April 1, 2019)
$11.55 for experienced employees, and $11.05 for inexperienced employees (as of April 1, 2019).
$14.00 (as of January 1, 2018)
Prince Edward Island
$12.25 (as of April 1, 2019)
$13.10 (as of May 1, 2020)
$11.32 (as of October 1, 2019)
*Minimum hourly wage given at of the time of publication.
If you’d like to learn more about this or other COVID-19 programs for Canadian businesses, please call us at 1-800-265-1002 or email firstname.lastname@example.org. Unlimited consultation related to tax matters is a key benefit of FBC Membership. You can also book an appointment online.
For the latest information, advice and insights for small business owners, visit our COVID-19 Resource Centre.
Disclaimer: The material above is provided for educational and informational purposes only.