- Canadian lawmakers have adopted a $ 73 billion Canadian relief program to stem layoffs in the country’s workforce.
- Businesses can receive up to CAN $ 847 per week per employee for 12 weeks.
- Organizations will need to post a loss of 15% or more from their revenues in January and February 2020 or from March, April or May of last year.
- Visit the Business Insider home page for more stories.
Canada’s House of Commons, at an emergency meeting held on Saturday, passed a law to use more than a quarter of the country’s emergency budget plan to prevent layoffs in companies affected by COVID- 19, reported Bloomberg.
Prime Minister Justin Trudeau called the package, known as the Canada Emergency Wage Subsidy – the country’s largest economic policy since World War II, according to Business in Vancouver. According to the report, the program will cost some 73 billion Canadian dollars, or about 52 billion US dollars.
CEWS will cover up to 75% of the first $ 58,700 earned by an employee for up to three months. Canadian businesses can receive up to $ 847 CAD per week – about $ 607 USD – per employee to help supplement the wages of each employee. The funds would be sent to businesses within two to five weeks. Companies can receive funding for up to 12 weeks as long as they can prove that they have suffered losses as a result of COVID-19.
To be eligible to apply for emergency funding, companies must be able to demonstrate at least a 15% drop in their revenues in March, April or May 2020 compared to the company’s revenues in the same months in 2019 or during the first two. month of 2020.
Businesses who have lied or inflated lost revenue will be fined 25% of the aid they received as part of the emergency aid. In order to release the funds, an organization will have to prove that it paid its employees, Business in Vancouver reported.
All sectors of activity – except the public sector – are eligible for aid.
In the past few weeks, more than five million people in Canada – about a quarter of the country’s workforce – have applied for emergency income support, reported Bloomberg News.
According to data from Johns Hopkins University, at least 23,717 people have been infected with the new coronavirus in Canada and 675 people have died from the virus. Last month, President Trump suspended all non-essential travel between the United States and Canada.
Although some Canadian legislators have expressed concerns about the relief bill, all federal parties have previously agreed to support the law, according to Business in Vancouver.