On Monday morning, Prime Minister Justin Trudeau addressed Canadians from Rideau Cottage and unveiled the details of the updated wage subsidy program for small and medium-sized businesses.
All businesses that suffer at least a 30% loss in wages as a result of the COVID-19 outbreak in Canada will qualify, regardless if they have '10 or 10,000' employees. This also includes non-profit organizations and charities.
According to Trudeau, the federal government will cover up to 75% of the first $58,700 each employee earns, which is up to $847/week.
However, the prime minister did offer a word of caution to businesses and encouraged employers to cover the remaining 25%, "We are trusting you to do the right thing," said Trudeau, adding that there will be "serious consequences" for any company that tries to take advantage of the system.
Trudeau introduced the wage subsidy program Friday, saying the new measures would help small businesses avoid layoffs or closures because of economic uncertainty caused by the COVID-19 pandemic.
The federal government had previously announced a 10% wage subsidy for business, but last week Trudeau said that was not enough. The Prime Minister said the wage subsidies will be retroactive to March 15, 2020.
More to come.