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% |
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 decline | 65% | 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 decline | Revenue 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 decline | Revenue 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