Federal update: Proposed changes to wage, rent and lockdown support

Publié avril 20, 2021

As unveiled in Budget 2021, the federal government plans to extend the wage and rent subsidies and lockdown top-up support until Sept. 25, 2021. The budget also proposes to gradually decrease the rates for the wage subsidy and rent subsidy, beginning July 4, 2021, with the intention to phase out these programs as vaccinations are completed and the economy reopens.

With much of the country experiencing a third wave of the COVID-19 pandemic, which could prolong restrictions on foodservice operations well into the summer, Restaurants Canada is working with the federal government to ensure these critically vital programs will remain sufficient enough to support the operational realities of our hardest hit sector for as long as needed.

The following tables provide an overview of the proposed changes to the federal wage and rent subsidy programs:

Canada Emergency Wage Subsidy Base and Top-up Rate Structure, Periods 17 to 20

Period 17
June 6 – July 3
Period 18
July 4 – July 31
Period 19
Aug. 1 – Aug. 28
Period 20
Aug. 29 – Sept. 25
Maximum
weekly benefit
per employee*
$847$677$452$226
≥70% revenue decline
75%
(i.e., Base: 40%
+
Top-up: 35%)

60%
(i.e., Base: 35%
+
Top-up: 25%)

40%
(i.e., Base: 25%
+
Top-up: 15%)

20%
(i.e., Base: 10%
+
Top-up: 10%)
50%-69% revenue decline

Base: 40% +
Top-up:
(revenue
decline – 50%)
x 1.75
[e.g., 40% +
(60% revenue
decline – 50%) x
1.75 = 57.5%
subsidy rate]


Base: 35% +
Top-up:
(revenue
decline – 50%)
x 1.25
[e.g., 35% +
(60% revenue
decline – 50%) x
1.25 = 47.5%
subsidy rate]


Base: 25% +
Top-up:
(revenue
decline – 50%)
x 0.75
[e.g., 25% +
(60% revenue
decline – 50%) x
0.75 = 32.5%
subsidy rate]


Base: 10% +
Top-up:
(revenue
decline – 50%)
x 0.5
[e.g., 10% +
(60% revenue
decline – 50%) x
0.5 = 15%
subsidy rate]
>10%-50% revenue decline
Base: revenue
decline x 0.8
[e.g., 30%
revenue decline
x 0.8 = 24%
subsidy rate]



Base: (revenue
decline – 10%) x
0.875
[e.g., (30%
revenue decline
10%) x 0.875
= 17.5%
subsidy rate]


Base: (revenue
decline – 10%) x
0.625
[e.g., (30%
revenue decline
10%) x 0.625
= 12.5%
subsidy rate]


Base: (revenue
decline – 10%) x
0.25
[e.g., (30%
revenue decline
10%) x 0.25 =
5% subsidy
rate]
0%-10% revenue decline
Base: revenue
decline x 0.8
[e.g., 5%
revenue decline
x 0.8 = 4%
subsidy rate]

0%0%0%
*The maximum weekly benefit per employee is equal to the maximum combined base subsidy and top-up wage subsidy for the qualifying period applied to the amount of eligible remuneration paid to the employee for the qualifying period, on remuneration of up to $1,129 per week.

Canada Emergency Rent Subsidy Base Rate Structure*, Periods 17** to 20

Period 17
June 6 – July 3
Period 18
July 4 – July 31
Period 19
Aug. 1 – Aug. 28
Period 20
Aug. 29 – Sept. 25
≥70% revenue decline65%60%40%20%
50%-69% revenue decline
40% +
(revenue decline – 50%)
x 1.25
[e.g., 40% +
(60% revenue decline – 50%)
x 1.25
= 52.5% subsidy rate]

35% + (revenue
decline – 50%) x 1.25
[e.g., 35% +
(60% revenue
decline – 50%)
x 1.25 = 47.5%
subsidy rate]

25% + (revenue
decline – 50%) x 0.75
[e.g., 25% +
(60% revenue
decline – 50%)
x 0.75 = 32.5%
subsidy rate]

10% + (revenue
decline – 50%) x 0.5
[e.g., 10% +
(60% revenue
decline – 50%) x
0.5 = 15%
subsidy rate]
>10%-50% revenue declineRevenue
decline x 0.8
[e.g., 30%
revenue decline
x 0.8 = 24%
subsidy rate]

(Revenue
decline – 10%) x
0.875
[e.g., (30%
revenue decline
10%) x 0.875
= 17.5%
subsidy rate]

(Revenue
decline – 10%) x
0.625
[e.g., (30%
revenue decline
10%) x 0.625
= 12.5%
subsidy rate]

(Revenue
decline – 10%) x
0.25
[e.g., (30%
revenue decline
10%) x 0.25 =
5% subsidy
rate]
0%-10% revenue declineRevenue
decline x 0.8
[e.g., 5%
revenue decline
x 0.8 = 4%
subsidy rate]
0%0%0%

*Expenses for each qualifying period are capped at $75,000 per location and are subject to an overall cap of $300,000 that is shared among affiliated entities. **Period 17 of the Canada Emergency Wage Subsidy would be the tenth period of the Canada Emergency Rent Subsidy. Period identifiers have been aligned for ease of reference.

Help us raise your voice

Restaurants Canada is continuing to discuss our recommendations for strengthening these critical sources of emergency aid with key government policymakers engaged in our Restaurant Revival Working Group.

We welcome your feedback. Please provide input on the proposed changes to Olivier Bourbeau, Restaurants Canada Vice President, Federal and Quebec at: OBourbeau@restaurantscanada.org

Marlee Wasser

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