Canada Emergency Wage Subsidy (CEWS)

• Go to navigation menu
• Skip to main content

Sections

• What the changes are: Canada Emergency Wage Subsidy (CEWS)
• Compare the CEWS and the CRHP: Canada Emergency Wage Subsidy (CEWS)
• Who can apply: Canada Emergency Wage Subsidy (CEWS)
• Periods you can apply for: Canada Emergency Wage Subsidy (CEWS)
• Which of your employees qualify: Canada Emergency Wage Subsidy (CEWS)
• Calculate your amount: Canada Emergency Wage Subsidy (CEWS)
  
  • How the revenue drop and subsidy rate are calculated: Canada Emergency Wage Subsidy (CEWS)
  • How the subsidy is calculated: Canada Emergency Wage Subsidy (CEWS)
• How to apply: Canada Emergency Wage Subsidy (CEWS)
• After you apply: Canada Emergency Wage Subsidy (CEWS)
• Contact us about CEWS: Canada Emergency Wage Subsidy (CEWS)

How the subsidy is calculated

Calculation for claim periods 1 to 4

For each claim period, A-B-C+D, where:

A =

The total of all amounts—each of which is for an eligible employee in respect of a week in the claim period—equal to the greater of E or F, where:

E =

The least of the following:

• 75% of the eligible remuneration paid to the employee in respect of that week
• $847, or
• $0 – if non-arm's-length employee

F =

The least of the following:

• the eligible remuneration paid to the employee in respect of that week
• 75% of the pre-crisis remuneration of the employee determined for that week, or
• $847

B =

The total of all amounts claimed (or intended to be claimed) for the 10% Temporary Wage Subsidy for Employers in the claim period

C =

The total of any work-sharing benefit amounts received by eligible employees during the claim period through ESDC's Work-Sharing program

D =

For an eligible employee for each whole week in the claim period that the employee was on leave with pay, the total of the employer contributions to:

• Employment Insurance (EI)
• Quebec Parental Insurance Plan (QPIP)
• Canada Pension Plan (CPP)
• Quebec Pension Plan (QPIP)

Calculation for claim periods 5 and 6

For each qualifying period, A-B+C, where:

A =

The total of all amounts—each of which is for an eligible employee in respect of a week in the qualifying period:

• if the employee is active (not on leave with pay for that week), the greater of E or F, where
  • E = either:
    • $0, if the eligible employer’s revenue drop for the claim period is less than 30.00%, or
    • the amount for the employee for that week using the calculation under A for periods 1 to 4, if the employer’s revenue drop for the claim period is 30.00% or more

    and

  • F = the eligible employer’s overall subsidy rate for the period, multiplied by the least of:
    • the amount of eligible remuneration paid to the employee in respect of that week
    • $1129, and
    • If the employee is a non-arm's-length employee, the pre-crisis remuneration of the employee determined for that week

    and

• if the employee is on leave with pay (furloughed) for that week, either:
  • $0, if the eligible employer’s overall subsidy rate for the period is 0%, or in any other case
  • the amount for the employee for that week using the calculation under A for periods 1 to 4

B =

The total of any work-sharing benefit amounts received by eligible employees during the claim period through ESDC's Work-Sharing program

C =

For an eligible employee, for each whole week in the claim period that the employee was on leave with pay, the total of the employer contributions to:

• Employment Insurance (EI)
• Quebec Parental Insurance Plan (QPIP)
• Canada Pension Plan (CPP)
• Quebec Pension Plan (QPIP)

Calculation for claim periods 7 to 21

For each qualifying period, A-B+C, where:

A =

• The total of all amounts—each of which is for an eligible employee in respect of a week in the qualifying period:
  • if the employee is active (not on leave with pay for that week), the amount determined by the eligible employer’s overall subsidy rate for the period, multiplied by the least of:
    • the amount of eligible remuneration paid to the employee in respect of that week
    • $1129, and
    • If the employee is a non-arm’s-length employee, the pre-crisis remuneration of the employee determined for that week

    or

  • if the employee is on leave with pay (furloughed) for that week:
    • for periods 7 and 8, either:
      • $0, if the eligible employer’s overall subsidy rate for the period is 0%, or in any other case
      • the amount for the employee for that week using the calculation under A for periods 1 to 4
    • for periods 9 and 10, the least of the following:
      • the eligible remuneration paid to the employee in respect of that week
      • the greater of
        • $500, or
        • 55% of the employee’s pre-crisis remuneration determined for that week
      • $573, or
      • $0, if either of the following applies
        • the employee is a non-arm’s-length employee and the pre-crisis remuneration of the employee determined for that week is $0
          or
        • the eligible employer’s overall subsidy rate for the period is 0%
    • for periods 11 to 19, the least of the following:
      • the eligible remuneration paid to the employee in respect of that week
      • the greater of
        • $500, or
        • 55% of the employee’s pre-crisis remuneration determined for that week
      • $595, or
      • $0, if either of the following applies
        • the employee is a non-arm’s-length employee and the pre-crisis remuneration of the employee determined for that week is $0
          or
        • the eligible employer’s overall subsidy rate for the period is 0%
    • for periods 20 and 21, $0

B =

The total of any work-sharing benefit amounts received by eligible employees during the claim period through ESDC's Work-Sharing program

C = Either:

• if the eligible employer’s overall subsidy rate for the period is greater than 0%, the total of the employer contributions to:
  • Employment Insurance (EI)
  • the Quebec Parental Insurance Plan (QPIP)
  • the Canada Pension Plan (CPP), and
  • the Quebec Pension Plan (QPP)

  for an eligible employee, for each whole week in the claim period that the eligible employee was on leave with pay
  or

• if the eligible employer’s overall subsidy rate for the period is 0%, this amount is $0.

Periods 5 and 6

The "safe harbour" rule for periods 5 and 6

For periods 5 and 6 only, if you have an eligible revenue drop of at least 30% in the current or previous period, you are entitled to the higher CEWS rate between two calculations:

• the rate calculated using the rules for the current period (period 5 or 6), or
• the rate calculated using the rules that were in place for period 4

This means that in periods 5 and 6, if you had a revenue drop of 30% or more in the current or previous period, you would receive an overall CEWS rate of at least 75% and will not receive an amount less than what you would have under the old rules.

If you use the online calculator or spreadsheet to calculate your subsidy amount, the safe harbour rule is automatically applied if you qualify and it is to your benefit.

You cannot round your rate to reach the 30% needed to qualify for the safe harbour rule.

Read more about how the revenue drop and subsidy rate are calculated for a claim period.

Rounding your rates

Section navigation

• Calculate your subsidy amount
• How to apply