Government announces proposal to extend the Canada Recovery Hiring Program to support new and existing workers



On October 21, 2021, the Minister of Finance announced a proposal to extend the Canada Recovery Hiring Program (CRHP) until May 7, 2022.

  • The CRHP is not just for hiring new employees: it can be used for both new and existing employees.
  • The CRHP is calculated based on increases in an employer’s total eligible remuneration paid to active employees (i.e. employees who are not on leave with pay) for a claim period when compared to a base period (March 14, 2021 to April 10, 2021).
  • For-profit corporations are only eligible for the CRHP if they are Canadian Controlled Private Corporations (CCPCs).
  • Employers cannot claim both the CRHP and the CEWS, they must claim whichever subsidy is greater.
  • To qualify for the CRHP, employers must have a revenue reduction of at least:
    • 0% for claim period 17 (June 6, 2021 to July 3, 2021)
    • 10% for claim periods 18 to 22 (from July 4, 2021 to November 20, 2021)
  • The subsidy rates are the following fixed rates:
    • 50% for periods 17 (June 6 to July 3, 2021), Period 18 (July 4, 2021 to July 31, 2021) and Period 19 (August 1 to August 28, 2021)
    • 40% for period 20 (August 29 to September 25, 2021)
    • 30% for period 21 (September 26 to October 23, 2021)
    • 20% for period 22 (October 24 to November 20, 2021)

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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