By Chris Brown

Update from the PM

Federal wage subsidy will be based on revenues lost, not number of employees

Mar 30, 2020 | 9:34 AM

Prime Minister Justin Trudeau revealed more details this morning on the wage subsidy announced last week.

Trudeau said that if a business will be eligible if revenue has decreased by at least 30 per cent as a result of COVID-19. The number of employees has no bearing on the eligibility requirement.

Non-profits and charities who meet the requirements will be eligible, as will businesses large and small, the prime minister said.

According to Trudeau, the subsidy will cover 75 per cent of a worker’s salary on the first $58,700 earned, for a total of $847 each week. The payments will be backdated to March 15.

money to buy groceries right now and a job to come back to later.

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Trudeau said the subsidy is to ensure Canadians have “money to buy groceries right now and a job to come back to later.”

He also warned of severe consequences for businesses that try to take advantage of or game the system.

“We are trusting you to do the right thing,” imploring them to pay the remaining 25 per cent for employees still on the payroll and re-hire any they’ve already had to lay off.

When asked about the energy industry, Trudeau acknowledged it and other industries are struggling more than others.

“There are significant areas where we are going to have to do more and we will be doing more,” but did not give further details.

The federal bailout package to date is now valued at more than $200 billion, including $52 billion in direct spending, $85 billion in tax deferrals for individuals and businesses, and $65 billion in loans. Last week, TD Economics estimated the increased wage subsidy could add $25 billion in direct spending to the total.

Information from the Canadian Federation of Independent Business on Monday suggests one in five small and medium-sized businesses remain open during the economic shutdown linked to COVID-19, while two in five are worried about having to permanently close.

During the news conference outside his Ottawa home, Trudeau was also asked about provinces requesting the army be deployed. He says no requests have been made so far but will be ready if that happens.

“The armed forces will be prepared to answer the call as they’ve done in our history. Our men and women in uniform are there for you.”

Trudeau again asked Canadians to take the pandemic seriously and self-isolate if need be and follow the mandatory quarantine rules put in place last week. He called self-isolation measures crucial as the government continues to increase its testing.

As of Monday morning, Canada had 6,255 confirmed cases, three probable cases and 63 deaths. There have been 210,435 Canadians tested.

Alberta has 661 cases, with three deaths. A total of 44,999 Albertans have been tested.

With files from the Canadian Press