Targeted Wage Subsidy

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Objective

The Targeted Wage Subsidy (TWS) Program applies to individuals who are having difficulties finding work. The program offers a temporary wage subsidy to employers as an incentive to hire individuals who may not ordinarily be considered for employment due to barriers such as limited work experience or a disability. It is also intended to assist with employment positions which require above entry-level qualifications which may not be addressed by other LDM programming where the employer is required to contribute a portion of the associated costs.

Ineligible Proposals

  1. Training already being funded through other programs
  2. Training where there is high employee turnover resulting from substandard working conditions and/or non-competitive wage levels.

Eligible Participants

Unemployed individuals:

  1. Currently receiving Employment Insurance benefits, or
  2. Whose EI benefit period ended within the last three (3) years, or
  3. Who received EI Maternity or Parental benefits within the past five (5) years and are re-entering the labour force after having left it to care for newborn or newly-adopted children.

Duration

A TWS can be used for up to 26 weeks and, in normal circumstances, the wage subsidy should not exceed 75% of the total wages paid to the individual for the period.

Financial Assistance

  1. The maximum wage subsidy available to employees under this program is $10.00 per hour to a maximum of 40 hours per week.
  2. The maximum contribution for Mandatory Employment Related Costs, or benefits, is 8%.
  3. Training supports may be approved up to a maximum of $1,000.00.
Overhead costs are NOT an eligible cost. All overhead costs are the responsibility of the employer.

Conditions

  1. The Targeted Wage Subsidy program cannot be used to replace existing personnel.
  2. A “Letter of Intent” detailing the sponsor or employer’s intention to hire the trainee upon completion of the training program must accompany the application or proposal.

Employers/Sponsors/Family

Employers/sponsors will not be allowed to hire immediate family. Immediate family shall include:

  • Spouse
  • A parent, grandchild
  • A son, daughter, brother or sister