How the revenue drop and subsidy rate are calculated: Canada Emergency Wage Subsidy (CEWS)

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Canada Emergency Wage Subsidy (CEWS)



How the revenue drop and subsidy rate are calculated

Calculations for closed claim periods are for information purposes only.

On this page

Revenue drop and subsidy rate calculation for claim periods 5 and later

For claim periods 5 to 17 (claims that cover July 5, 2020 to July 3, 2021), there is no minimum revenue drop required to qualify for the subsidy.

For claim periods 18 and 19 (claims that cover July 4 to August 28, 2021), you must have had a revenue drop of more than 10% to qualify for the subsidy for active employees, although you may still qualify for a CEWS amount for your employees on leave with pay if your revenue drop is 10% or less.

For claim periods 20 and 21 (claims that cover August 29 to October 23, 2021), you must have had a revenue drop of more than 10% to qualify for the subsidy.

The rate your revenue has dropped is used to calculate how much subsidy you receive for these periods.

Calculate your revenue drop online

You can use the online calculator or spreadsheet to find your revenue drop for periods 5 and later while calculating how much subsidy you may receive.

or

Read about the calculation

You can read the in-depth details of how the revenue drop and subsidy rate are calculated for claim periods 5 and later.

Overall subsidy rate

For claim periods 1 to 4, the subsidy calculation was based on a fixed rate of 75%. However, for claim periods 5 and later, the CEWS rate is variable and depends on the amount your revenue dropped. It is made up of two parts.

Overall subsidy rate = base rate + top-up rate

  • Base rate
    The base rate uses your base revenue drop
  • plus Top-up rate
    The top-up rate is available to employers that have had a certain revenue drop of more than 50%
  • equals Overall CEWS rate

For periods 11 and later, the top-up rate is calculated using the same revenue drop as the base rate.

You can calculate your overall subsidy rate (base and top-up) using the online calculator or spreadsheet.

You can learn how the subsidy rate is used when calculating your CEWS amount by reading more about how the overall subsidy amount is calculated.

Optional “safe harbour” calculation for periods 5 and 6

For periods 5 and 6 only, if your:

  • base revenue drop is at least 30%, and
  • overall subsidy rate is less than 75%
  • you may benefit from using the rules and calculations from period 4 to calculate your subsidy amount.

This is referred to as a “safe harbour” rule for periods 5 and 6. 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.


Rounding your rates

The CEWS application accepts rates up to two decimal places. If the rate you calculated has more than two decimal places, you can round up or down to the nearest hundredth (second decimal place). However, you cannot round a rate up to reach a threshold.

For example:

  • If your calculated revenue drop in period 5 is 29.99…%, your rate would be 29.99%. You may not round it up to 30% to qualify for the "safe harbour" rule.
  • If your calculated top-up revenue drop is 69.99…%, you may not round it up to 70% to qualify for the maximum top-up rate.

Base revenue drop calculation

The revenue drop you use to calculate the base subsidy rate is the decline in eligible revenue you experienced when comparing your claim period revenue with your revenue from a specific period of time prior to March 2020 (the “prior reference period”):

Revenue drop (%) = 1 – (Claim period revenue / prior reference period revenue)

For periods 11 and later, this revenue drop is used to calculate both your base rate and your top-up rate.

Using the current or prior claim period revenue drop (the “deeming rule” for periods 5 and later)

For claim periods 5 and later, you will calculate two revenue drops and use the higher result in your base rate calculation. If you use the online calculator or spreadsheet to calculate your subsidy amount, both rates will be calculated when you enter your revenues and the higher rate will automatically be applied.

Current period

Revenue drop (%) = 1 – (Current claim period revenue divided by revenue from the prior reference period for the claim period)

or

Previous period

Revenue drop (%) = 1 – (Previous claim period revenue divided by revenue from the prior reference period for the previous claim period)

The higher rate that results is the one you will use to calculate your subsidy amount. This is your base revenue drop. You must repeat this calculation and comparison for each claim period.

Prior reference period options

There are two prior reference period options when calculating your revenue from before the pandemic.

General prior reference period

the eligible revenue you earned in the corresponding month(s) in a specific earlier year

or

Alternative prior reference period

the average of the eligible revenue you earned in January and February, 2020

You must choose one of these prior reference period options and use it when calculating your revenue drop for both the base rate and top-up rate for all claims in periods 5 and later. However:

  • if you used one approach for claims you made in periods 1 to 4, you may switch to the other option beginning with your claim in period 5
  • if you were not operating on March 1, 2019, you may elect to use the alternative approach for claim periods 14 to 17, even if you used the general approach for prior claims New: September 1, 2021

Note: If you choose to use the alternative prior reference period (January and February 2020), you need to check the "prior reference period" election box when completing your CEWS application form.

If you were not operating as a business throughout January and February 2020, read more about how to calculate your base revenue drop if you choose the alternative prior reference period.

Base revenue drop comparison months for periods 5 to 21

Base revenue drop prior reference period comparison options for claim periods 5 to 21
Claim period Reference months for comparison under the
general year-over-year approach		 Reference months for comparison under the
alternative approach
Period 5
  • July 2020 over July 2019
    or
  • June 2020 over June 2019
  • July 2020 over average of January and February 2020
    or
  • June 2020 over average of January and February 2020
Period 6
  • August 2020 over August 2019
    or
  • July 2020 over July 2019
  • August 2020 over average of January and February 2020
    or
  • July 2020 over average of January and February 2020
Period 7
  • September 2020 over September 2019
    or
  • August 2020 over August 2019
  • September 2020 over average of January and February 2020
    or
  • August 2020 over average of January and February 2020
Period 8
  • October 2020 over October 2019
    or
  • September 2020 over September 2019
  • October 2020 over average of January and February 2020
    or
  • September 2020 over average of January and February 2020
Period 9
  • November 2020 over November 2019
    or
  • October 2020 over October 2019
  • November 2020 over average of January and February 2020
    or
  • October 2020 over average of January and February 2020
Periods 10 and 11
  • December 2020 over December 2019
    or
  • November 2020 over November 2019
  • December 2020 over average of January and February 2020
    or
  • November 2020 over average of January and February 2020
Period 12
  • January 2021 over January 2020
    or
  • December 2020 over December 2019
  • January 2021 over average of January and February 2020
    or
  • December 2020 over average of January and February 2020
Period 13
  • February 2021 over February 2020
    or
  • January 2021 over January 2020
  • February 2021 over average of January and February 2020
    or
  • January 2021 over average of January and February 2020
Period 14
  • March 2021 over March 2019
    or
  • February 2021 over February 2020
  • March 2021 over average of January and February 2020
    or
  • February 2021 over average of January and February 2020
Period 15
  • April 2021 over April 2019
    or
  • March 2021 over March 2019
  • April 2021 over average of January and February 2020
    or
  • March 2021 over average of January and February 2020
Period 16
  • May 2021 over May 2019
    or
  • April 2021 over April 2019
  • May 2021 over average of January and February 2020
    or
  • April 2021 over average of January and February 2020
Period 17
  • June 2021 over June 2019
    or
  • May 2021 over May 2019
  • June 2021 over average of January and February 2020
    or
  • May 2021 over average of January and February 2020
Period 18
  • July 2021 over July 2019
    or
  • June 2021 over June 2019
  • July 2021 over average of January and February 2020
    or
  • June 2021 over average of January and February 2020
Period 19
  • August 2021 over August 2019
    or
  • July 2021 over July 2019
  • August 2021 over average of January and February 2020
    or
  • July 2021 over average of January and February 2020
Period 20
  • September 2021 over September 2019
    or
  • August 2021 over August 2019
  • September 2021 over average of January and February 2020
    or
  • August 2021 over average of January and February 2020
Period 21
  • October 2021 over October 2019
    or
  • September 2021 over September 2019
  • October 2021 over average of January and February 2020
    or
  • September 2021 over average of January and February 2020


Examples of revenue drop calculation for claim periods 5 and later

Example: Choosing a revenue comparison option in period 6

Poppy’s Doggy Daycare is preparing to claim the subsidy for the first time for period 6, and so has not chosen a prior reference period option before.

  • Its monthly eligible revenue in 2020 so far is as follows:
    • January: $11,400
    • February: $13,200
    • April: $14,900
    • May: $12,900
    • June: $8,100
    • July: $8,700
    • August: $10,100
  • For the same months in 2019, its eligible revenue was:
    • January: $14,400
    • February: $16,000
    • April: $16,300
    • May: $16,600
    • June: $9,400
    • July: $10,900
    • August: $11,200

General prior reference period (option 1)

Calculating Poppy’s current period revenue drop:

  • August 2019 eligible revenue: $11,200
  • August 2020 eligible revenue: $10,100
  • Current period revenue drop: 1 - ($10,100 ÷ $11,200) = 9.82%

Calculating Poppy’s previous period revenue drop:

  • July 2019 eligible revenue: $10,900
  • July 2020 eligible revenue: $8,700
  • Previous period revenue drop: 1 - ($8,700 ÷ $10,900) = 20.18%

Poppy’s base revenue drop will be 20.18% if it chooses to use the general prior reference period revenue comparison option for period 6. The base revenue drop is the greater of the current period revenue drop (9.82%) and the previous period revenue drop (20.18%).

and

Alternative prior reference period (option 2)

Calculating Poppy’s average monthly eligible revenue from January and February 2020:

  • January 2020 eligible revenue: $11,400
  • February 2020 eligible revenue: $13,200
  • Average monthly eligible revenue from January and February 2020: ($11,400 + $13,200) ÷ 2 = $12,300

Calculating Poppy’s current period revenue drop:

  • August 2020 eligible revenue: $10,100
  • Average monthly eligible revenue from January and February 2020: $12,300
  • Current period revenue drop: 1 - ($10,100 ÷ $12,300) = 17.89%

Calculating Poppy’s previous period revenue drop

  • July 2020 eligible revenue: $8,700
  • Average monthly eligible revenue from January and February 2020: $12,300
  • Previous period revenue drop: 1 - ($8,700 ÷ $12,300) = 29.27%

Poppy’s base revenue drop will be 29.27% if it chooses to use the alternative prior reference period revenue comparison option for period 6. The base revenue drop is the greater of the current period revenue drop (17.89%) and the previous period revenue drop (29.27%).

The alternative prior reference period (option 2) results in the higher base revenue drop for this claim period.

Note: If it uses the alternative prior reference period for period 6, Poppy’s must use the alternative prior reference period for its revenue comparison for periods 5 to 10 also, even if the general prior reference period revenue comparison option results in the higher base revenue drop for those periods.

Example: Current period's revenue drop is lower than previous period's

Denfield Kitchen is preparing to claim the subsidy for period 6. It uses the alternative prior reference period revenue comparison option.

  • Its monthly eligible revenue in 2020 for the last two months was:
    • July: $63,700
    • August: $76,400
  • Its monthly eligible revenue at the beginning of the year was:
    • January: $74,000
    • February: $80,100

Calculating Denfield Kitchen’s average monthly eligible revenue from January and February 2020:

  • January 2020 eligible revenue: $74,000
  • February 2020 eligible revenue: $80,100
  • Average monthly eligible revenue from January and February 2020: ($74,000 + $80,100) ÷ 2 = $77,050

Current period revenue drop

Calculating Denfield Kitchen’s current period revenue drop

  • August 2020 eligible revenue: $76,400
  • Average monthly eligible revenue from January and February 2020: $77,050
  • Current period revenue drop: 1 - ($76,400 ÷ $77,050) = 0.84%
and

Previous period revenue drop

Calculating Denfield Kitchen’s previous period revenue drop

  • July 2020 eligible revenue: $63,700
  • Average monthly eligible revenue from January and February 2020: $77,050
  • Previous period revenue drop: 1 - ($63,700 ÷ $77,050) = 17.33%

The previous period revenue drop (17.33%) results in a higher base rate for this claim period.

Example: Current period's revenue drop is higher than previous period's

XYZ Inc. is preparing to claim the subsidy for period 6. It uses the general prior reference period revenue comparison option.

  • Its monthly eligible revenue in 2020 for the last two months was:
    • July: $145,900
    • August: $154,500
  • For the same months in 2019, its eligible revenue was:
    • July: $180,900
    • August: $210,200

Current period revenue drop

Calculating XYZ’s current period revenue drop:

  • August 2019 eligible revenue: $210,200
  • August 2020 eligible revenue: $154,500
  • Current period revenue drop: 1 - ($154,500 ÷ $210,200) = 26.50%
and

Previous period revenue drop

Calculating XYZ’s previous period revenue drop:

  • July 2019 eligible revenue: $180,900
  • July 2020 eligible revenue: $145,900
  • Previous period revenue drop: 1 - ($145,900 ÷ $180,900) = 19.35%

The current period revenue drop (26.50%) results in a higher base rate for this claim period.


Base subsidy rate calculation

The base rate is added to the top-up rate to determine the overall subsidy rate for active employees.

The base rate is calculated by multiplying your base revenue drop for the claim period by the factor for the claim period shown in the table below.

If your base revenue drop for a claim period is at least 50%, you will receive the maximum base rate for that claim period. The maximum base rate changes for each claim period.

Base CEWS rate for claim periods 5 to 21
Claim period Revenue drop of more than 50% Revenue drop of higher than 10% up to 50% Revenue drop of 10% or less
Periods 5 and 6 60% 1.2 x revenue drop 1.2 x revenue drop
Period 7 50% 1.0 x revenue drop 1.0 x revenue drop
Periods 8 to 17 40% 0.8 x revenue drop 0.8 x revenue drop
Period 18 35% 0.875 x (revenue drop - 10%) 0 Footnote *
Period 19 25% 0.625 x (revenue drop - 10%) 0 Footnote *
Period 20 25% 0.625 x (revenue drop - 10%) 0
Period 21 10% 0.25 x (revenue drop - 10%) 0


Footnote 1

if you have employees on leave with pay during claim period 18 or 19, you may still qualify for CEWS for those employees, even with a revenue drop of 10% or less. Use the online calculator or downloadable spreadsheet to find out.

Return to footnote *referrer


Top-up revenue drop calculation

The top-up rate applies to eligible employers whose revenue has dropped by more than 50% in a particular period.

The top-up revenue drop is used to calculate the top-up rate. For claim periods 11 and later, you only need to calculate one revenue drop. The base revenue drop is used to determine both your base rate and your top-up rate for these periods.

For claim periods 5 to 10, the top-up revenue drop is calculated separately from the base revenue drop. It is the decline in eligible revenue you experienced when comparing your average monthly revenue for the specified month(s) for that claim period with either:

General prior reference period

the specified month(s) in the previous year

or

Alternative prior reference period

January and February 2020

You must use the same prior reference period comparison option (general or alternative) for the top-up revenue drop that you chose for the base rate revenue drop.

Top-up revenue drop calculation for periods 5 to 7

For periods 5 to 7, the top-up revenue drop is calculated by comparing the average monthly revenue of the 3 months prior to the claim period with either:

  • the average monthly revenue of the same 3 months in the previous year, or
  • the average monthly revenue of January and February 2020

Top-up revenue comparison months for periods 5 to 7

Top-up prior reference period comparison options for claim periods 5 to 7
Claim period General prior reference period comparison Alternative prior reference period comparison
Period 5
  • average of April, May, and June 2020
    over
  • average of April, May, and June 2019
  • average of April, May, and June 2020
    over
  • average of January and February 2020
Period 6
  • average of May, June, and July 2020
    over
  • average of May, June, and July 2019
  • average of May, June, and July 2020
    over
  • average of January and February 2020
Period 7
  • average of June, July, and August 2020
    over
  • average of June, July, and August 2019
  • average of June, July, and August 2020
    over
  • average of January and February 2020

Top-up revenue drop calculation for periods 8 to 10

For periods 8 to 10, the top-up revenue drop is the higher of these two amounts:

  • the revenue drop you used to calculate your base rate
    or
  • the average revenue drop from the 3 months prior to the claim period (the top-up revenue drop calculation used in periods 5 to 7)

This is sometimes referred to as the “safe harbour” rule for periods 8 to 10.

Top-up revenue comparison months for periods 8 to 10

Top-up prior reference period comparison options for claim periods 8 to 10
Claim period General prior reference period comparison Alternative prior reference period comparison General prior reference period comparison for safe harbour Alternative prior reference period comparison for safe harbour
Period 8
  • October 2020 over October 2019
    or
  • September 2020 over September 2019
  • October 2020 over average of January and February 2020
    or
  • September 2020 over average of January and February 2020
  • average of July, August, and September 2020
    over
  • average of July, August, and September 2019
  • average of July, August, and September 2020
    over
  • average of January and February 2020
Period 9
  • November 2020 over November 2019
    or
  • October 2020 over October 2019
  • November 2020 over average of January and February 2020
    or
  • October 2020 over average of January and February 2020
  • average of August, September, and October 2020
    over
  • average of August, September, and October 2019
  • average of August, September, and October 2020
    over
  • average of January and February 2020
Period 10
  • December 2020 over December 2019
    or
  • November 2020 over November 2019
  • December 2020 over average of January and February 2020
    or
  • November 2020 over average of January and February 2020
  • average of September, October, and November 2020
    over
  • average of September, October, and November 2019
  • average of September, October, and November 2020
    over
  • average of January and February 2020

Top-up revenue drop calculation for periods 11 and later

For periods 11 and later, the top-up revenue drop is the same as the revenue drop you used to calculate your base rate.


Top-up rate calculation

The top-up rate is added to the base rate to determine the overall subsidy rate for active employees.

Top-up rate calculation for claim periods 11 to 21

For periods 11 to 21, the top-up rate is calculated using your base revenue drop.

Top-up rate calculation for claim periods 11 to 17
Base revenue drop Top-up rate
70% or higher 35%
50.01% to 69.99% 1.75 x (base revenue drop - 50%)
50% or lower 0%
Top-up rate calculation for claim period 18
Base revenue drop Top-up rate
70% or higher 25%
50.01% to 69.99% 1.25 x (base revenue drop - 50%)
50% or lower 0%
Top-up rate calculation for claim periods 19 and 20
Base revenue drop Top-up rate
70% or higher 15%
50.01% to 69.99% 0.75 x (base revenue drop - 50%)
50% or lower 0%
Top-up rate calculation for claim period 21
Base revenue drop Top-up rate
70% or higher 10%
50.01% to 69.99% 0.5 x (base revenue drop - 50%)
50% or lower 0%

Top-up rate calculation for claim periods 5 to 10

For periods 5 to 10, the top-up rate is calculated using your top-up revenue drop.

Top-up rate calculation for claim periods 5 to 10
Top-up revenue drop Top-up rate
70% or higher 25%
50.01% to 69.99% 1.25 x (top-up revenue drop - 50%)
50% or lower 0%

Note: You cannot round your rate to reach the 70% maximum top-up.


Example of overall subsidy rate calculation for claim periods 5 and later

Example: Qualifying for the “safe harbour” top-up in period 8

Step 1: Determine your revenue drop

For this example, you’ve been using the general method to calculate your drop in eligible revenue since period 5 and have already figured out all the revenue drops you’ll need for period 8:

  • Claim period month: October 2020 divided by October 2019: 60% drop
  • Previous period month: September 2020 divided by September 2019: 58% drop
  • Average of July, August, and September, 2020, divided by the average of July, August, and September, 2019: 66% drop

Step 2: Calculate the subsidy rate

For the base rate, use the higher of these two amounts:

  • the claim period month revenue drop
    or
  • the previous month's revenue drop
  • In this example, you’ll use the October revenue drop of 60% because it is higher than the previous period month’s revenue drop of 58%.
  • Revenue drop of 60% = maximum base rate of 40%

For the top-up rate, use the higher of these two amounts:

  • the revenue drop you used when calculating your base rate (the higher of either the claim period month or the previous period month)
    and
  • the average revenue drop over the three months prior to the claim period compared to the average monthly revenue of the same 3 months in the previous year

In this example, you’ll use the three-month average drop (July, August, and September) of 66% because it is higher than the base revenue drop of 60%.

Top-up revenue drop of 66% = 1.25 x (66%-50%) = top-up rate of 20%

Step 3: Add the base rate and top-up rate to get your overall subsidy rate

Base rate of 40% + top-up rate of 20% = overall rate of 60%

Example: Calculating revenue drops CEWS in period 6 and qualifying for a partial top-up

Chez Riendeau is a cooking school who saw a significant drop in business as the pandemic began. Although their in-person classes have been cancelled since mid-March, they have managed to continue earning through their popular online courses.

Chez Riendeau is preparing to claim the subsidy for period 6. It uses the alternative prior reference period revenue comparison option.

  • Its monthly eligible revenue in 2020 so far is as follows:
    • January: $82,300
    • February: $81,800
    • March: $54,700
    • April: $32,500
    • May: $35,300
    • June: $39,500
    • July: $42,800
    • August: $40,600
  • Calculating Chez Riendeau’s average monthly eligible revenue from January and February 2020:
    • January 2020 eligible revenue: $82,300
    • February 2020 eligible revenue: $81,800
    • average monthly eligible revenue from January and February 2020: ($82,300 + $81,800) ÷ 2 = $82,050

Current period revenue drop

Calculating Chez Riendeau’s current period revenue drop

  • August 2020 eligible revenue: $40,600
  • average monthly eligible revenue from January and February 2020: $82,050
  • current period revenue drop: 1 - ($40,600 ÷ $82,050) = 50.52%
and

Previous period revenue drop

Calculating Chez Riendeau’s previous period revenue drop

  • July 2020 eligible revenue: $42,800
  • average monthly eligible revenue from January and February 2020: $82,050
  • previous period revenue drop: 1 - ($42,800 ÷ $82,050) = 47.84%

The previous period revenue drop (50.52%) results in a higher base rate.

Because its base revenue drop is at least 50%, it received the maximum base rate for period 6, which is 60%.

Top-up revenue drop

Calculating Chez Riendeau’s average monthly revenue from the 3 months prior to the claim period:

  • May 2020 eligible revenue: $35,300
  • June 2020 eligible revenue: $39,500
  • July 2020 eligible revenue: $42,800
  • average monthly eligible revenue from May, June, and July 2020: ($35,300 + $39,500 + $42,800) ÷ 3 = $39,200

Calculating Chez Riendeau’s top-up revenue drop:

  • average monthly eligible revenue from May, June, and July 2020: $39,200
  • average monthly eligible revenue from January and February 2020: $82,050
  • top-up revenue drop: 1 - ($39,200 ÷ $82,050) = 52.22%

Because Chez Riendeau uses the alternative prior reference period revenue comparison option, its top-up revenue drop is 52.22%, which compares the average monthly eligible revenue of the 3 months prior to the claim period to the average monthly eligible revenue of January and February 2020.

Calculating Chez Riendeau’s top-up rate:

  • top-up revenue drop: 52.22%
  • period 6 top-up rate: 1.25 × (52.22% - 50%) = 2.78%

Calculating Chez Riendeau’s overall CEWS rate:

  • base rate: 60.00%
  • top-up rate: 2.78%
  • period 6 top-up rate: 60.00% + 2.78% = 62.78%

Chez Riendeau is eligible to claim a basic CEWS amount that will be calculated using its overall subsidy rate of 62.78%.

Revenue drop calculation for claim periods 1 to 4

For periods 1 to 4, you must show that your eligible revenue dropped by a minimum amount to qualify for the subsidy. If you meet the minimum revenue drop, the subsidy calculation uses a fixed rate of 75%.

How the revenue drop is calculated for periods 1 to 4

Your revenue drop for a claim period is the decline in eligible revenue you experienced. It’s calculated by comparing your eligible revenue for the claim period month to your eligible revenue from a corresponding previous period (“baseline revenue”).

Math behind the revenue drop calculation

For each claim period, 1 – (A÷B), where:

  • A is your eligible revenue for the claim period, and
  • B is your eligible revenue from a corresponding prior period (baseline revenue).

The result, expressed as a percentage, is your revenue drop.

Your revenue drop can’t be negative. If the result is negative, then your actual revenue drop for the claim period is 0%.

Claim period revenue
Your claim period revenue is the eligible revenue for the month in 2020 specified for that claim period.
Baseline revenue
Your baseline revenue is the eligible revenue for one of two prior period comparison options specified for that claim period.

Revenue drop required to qualify for claim periods 1 to 4

Claim periods and revenue drops for the Canada Emergency Wage Subsidy
Claim period Start and end dates Baseline revenue Claim period revenue Required drop
Period 1 March 15 to April 11, 2020
  • March 2019
    or
  • average of January and February 2020
 March 2020 15%
Period 2 April 12 to May 9, 2020
  • April 2019
    or
  • average of January and February 2020
 April 2020 30%
Period 3 May 10 to June 6, 2020
  • May 2019
    or
  • average of January and February 2020
 May 2020 30%
Period 4 June 7 to July 4, 2020
  • June 2019
    or
  • average of January and February 2020
 June 2020 30%

You must choose one of these prior reference period comparison options and use it when calculating your revenue drop for all claims in periods 1 to 4. However, if you use one method for claims you made in periods 1 to 4, you may switch to the other method beginning with your claim in period 5.

If you were not operating as a business throughout January and February 2020, read more about how to calculate your baseline revenue for eligibility purposes if you choose the alternative prior reference period.

Note: If you choose to use the alternative prior reference period (January and February 2020), you need to check the "prior reference period" election box when completing your CEWS application form.

Automatically qualifying for later periods (the “deeming rule” for periods 1 to 4)

For periods 1, 2, and 3, if you determine that you qualify for the subsidy for one claim period, you will automatically qualify for the following claim period. For example, if your revenue drop is over 30% for period 3, you don’t need to re-calculate your drop for period 4 (you are “deemed” to have met this qualification).

Read about how the deeming rule works in claim periods 5 and later

Examples of revenue drop calculation and automatically qualifying for claim periods 1 to 4

Example: Automatically qualifying for a subsequent period

Business "A" eligibility

Period 1: March 15 to April 11 (15% revenue reduction required)
Example 1 - Period 1: March 15 to April 11 (15% revenue reduction required): Revenue
Jan 2020 Feb 2020 Mar 2020 Baseline (compare to Mar 2020)
$100,000 $140,000 $130,000
  • March 2019: $170,000 (23.5% reduction)
  • Jan/Feb 2020 average: $120,000 (0% reduction)

CEWS eligibility: Qualifies for period 1

Baseline chosen: Corresponding month in 2019

Note: Whatever baseline you initially choose, it must remain the same for claim periods 1 to 4

Period 2: April 12 to May 9 (30% revenue reduction required)
Example 1 - Period 2: April 12 to May 9 (30% revenue reduction required): Revenue
Jan 2020 Feb 2020 April 2020 Baseline (compare to Apr 2020)
$100,000 $140,000 $120,000
  • April 2019: $160,000 (25% reduction)
  • Jan/Feb 2020 average: $120,000 (0% reduction)

CEWS eligibility: Qualifies for period 2

Baseline chosen: Corresponding month in 2019

Although the employer's revenue has not met the 30% reduction for period 2, because they qualified for period 1, they automatically qualify for the following claim period.

Note: Whatever baseline you initially choose, it must remain the same for claim periods 1 to 4

Period 3: May 10 to June 6 (30% revenue reduction required)
Example 1 - Period 3: May 10 to June 6 (30% revenue reduction required): Revenue
Jan 2020 Feb 2020 May 2020 Baseline (compare to May 2020)
$100,000 $140,000 $130,000
  • May 2019: $190,000 (31.6% reduction)
  • Jan/Feb 2020 average: $120,000 (0% reduction)

CEWS eligibility: Qualifies for period 3

Baseline chosen: Corresponding month in 2019

Note: Whatever baseline you initially choose, it must remain the same for claim periods 1 to 4

Example: Only qualifying for period 3

Business "B" eligibility

Period 1: March 15 to April 11 (15% revenue reduction required)
Example 2 - Period 1: March 15 to April 11 (15% revenue reduction required): Revenue
Jan 2020 Feb 2020 Mar 2020 Baseline (compare to Mar 2020)
$100,000 $140,000 $105,000
  • March 2019: $115,000 (8.7% reduction)
  • Jan/Feb 2020 average: $120,000 (12.5% reduction)

CEWS eligibility: Does not qualify for period 1

Baseline chosen: Corresponding month in 2019 and average of Jan/Feb are both below 15%.

Period 2: April 12 to May 9 (30% revenue reduction required)
Example 2 - Period 2: April 12 to May 9 (30% revenue reduction required): Revenue
Jan 2020 Feb 2020 April 2020 Baseline (compare to Apr 2020)
$100,000 $140,000 $120,000
  • April 2019: $160,000 (25% reduction)
  • Jan/Feb 2020 average: $120,000 (0% reduction)

CEWS eligibility: Does not qualify for period 2

Baseline chosen: Corresponding month in 2019 and average of Jan/Feb are both below 30%

Period 3: May 10 to June 6 (30% revenue reduction required)
Example 2 - Period 3: May 10 to June 6 (30% revenue reduction required): Revenue
Jan 2020 Feb 2020 May 2020 Baseline (compare to May 2020)
$100,000 $140,000 $120,000
  • May 2019: $180,000 (33.3% reduction)
  • Jan/Feb 2020 average: $120,000 (0% reduction)

CEWS eligibility: Qualifies for period 3

Baseline chosen: Corresponding month in 2019

Note: Whatever baseline you initially choose, it must remain the same for claim periods 1 to 4

Example: Qualifying for all 3 periods

Business "C" eligibility

Period 1: March 15 to April 11 (15% revenue reduction required)
Example 3 - Period 1: March 15 to April 11 (15% revenue reduction required): Revenue
Jan 2020 Feb 2020 Mar 2020 Baseline (compare to Mar 2020)
$100,000 $140,000 $110,000
  • March 2019: $140,000 (21.4% reduction)
  • Jan/Feb 2020 average: $120,000 (8.3% reduction)

CEWS eligibility: Qualifies for period 1

Baseline chosen: Corresponding month in 2019

Note: Whatever baseline you initially choose, it must remain the same for claim periods 1 to 4

Period 2: April 12 to May 9 (30% revenue reduction required)
Example 3 - Period 2: April 12 to May 9 (30% revenue reduction required): Revenue
Jan 2020 Feb 2020 April 2020 Baseline (compare to Apr 2020)
$100,000 $140,000 $120,000
  • April 2019: $160,000 (25% reduction)
  • Jan/Feb 2020 average: $120,000 (0% reduction)

CEWS eligibility: Qualifies for period 2

Baseline chosen: Corresponding month in 2019

Although the employer's revenue has not met the 30% reduction for period 2, because they qualified for period 1, they automatically qualify for the following claim period.

Note: Whatever baseline you initially choose, it must remain the same for claim periods 1 to 4

Period 3: May 10 to June 6 (30% revenue reduction required)
Example 3 - Period 3: May 10 to June 6 (30% revenue reduction required): Revenue
Jan 2020 Feb 2020 May 2020 Baseline (compare to May 2020)
$100,000 $140,000 $100,000
  • May 2019: $150,000 (33.3% reduction)
  • Jan/Feb 2020 average: $120,000 (16.6% reduction)

CEWS eligibility: Qualifies for period 3

Baseline chosen: Corresponding month in 2019

Note: Whatever baseline you initially choose, it must remain the same for claim periods 1 to 4


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Date modified:
2021-09-02