Helping businesses impacted by COVID-19 hire more workers
The 2021 Federal Budget introduced the new Canada Recovery Hiring Program (CRHP) to provide support to eligible employers that continue to experience decreases in revenue because of the pandemic. The CRHP is designed to offset a portion of the extra costs employers take on as they reopen, encouraging business owners to increase wages and hours of operation and to ultimately bring back furloughed or laid-off employees and hire new staff.
With the added support, employers are encouraged to hire at their own pace, as different regions reopen at different times across the country, serving the overall goal to make it as easy as possible for businesses to hire workers as the economy reopens. The program provides eligible employers a subsidy of up to 50% of incremental remuneration paid to eligible active employees between June 6, 2021, and November 20, 2021.
As the rates for both the Wage Subsidy and the Hiring Program will slowly ramp down over time, employers will have a strong incentive to begin hiring as soon as possible and maximize their benefit.
The program will be available through the Canada Revenue Agency, just like the Wage Subsidy and Rent Subsidy.
There are eligibility criteria for employers and employees, as well as a business’ revenues. It should be noted that a business can apply for the CEWS or the CRHP, but not both.