CEWS periods 8, 9 and 10

On October 14, 2020, the Department of Finance released details on how periods 8, 9 and 10 of the CEWS program will work.

Non-furloughed employees.

  • The maximum base subsidy rate would be set at 40% for this period, and the maximum top-up subsidy rate would remain at 25%.

  • Instead of using the current three-month revenue-decline test for the top-up subsidy, both the base and top-up would be determined by the change in an eligible employer's monthly revenues, year-over-year, for either the current or previous calendar month.

  • For employers using the alternative revenue-decline test (announced on April 8, 2020), both the base subsidy and the top-up subsidy would be determined by the change in an eligible employer's monthly revenues relative to the average of its January 2020 and February 2020 revenues.

  • The wage subsidy program would include a “safe harbour” rule applicable from September 27 to December 19, 2020. This rule would entitle an eligible employer to a top-up subsidy rate that is no less than it would have received under the three‑month revenue-decline test.

Furloughed employees

As of October 25, 2020, the subsidy per week in respect of an arm’s length employee (or a non-arm’s length employee who received pre-crisis remuneration for the relevant period) would be: the amount of eligible remuneration paid in respect of the week; or, if the employee receives remuneration of $500 or more in respect of the week, the greater of $500 and 55 per cent of pre-crisis remuneration for the employee, up to a maximum subsidy amount of $573.

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