What the CRA Said

Canada Worker Lockdown Benefit

On December 22, 2021, the Government of Canada announced that it would be expanding eligibility for the Canada Worker Lockdown Benefit (CWLB). Canadians in designated regions affected by lockdowns or qualifying capacity restrictions can apply for the benefit.

Currently, British Columbia, Alberta, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador and Nunavut are included in the list of designated lockdown regions. This list will be updated as provincial or territorial governments introduce changes to public health restrictions.

• The Canada Worker Lockdown Benefit includes workers in regions where provincial or territorial governments have introduced or acknowledged capacity restrictions of 50% or more. This benefit will provide $300 a week in income support to eligible workers who are directly affected by a COVID-19-related public health lockdown, and who have lost 50% or more of their income as a result.  Payments will be retroactive to December 19, 2021. To be eligible for the CWLB, you must meet the eligibility criteria which includes, but is not limited to:
  • You earned at least $5,000 in 2020, 2021, or in the 12 months leading up to the day you apply for the benefit;
  • You filed a 2020 tax return;
  • A region where you work or provide a service is designated as a COVID-19 lockdown region during the application period;
  • A designated COVID-19 lockdown in your region resulted in one of the following during the application period:
    • you lost your job and are unemployed
    • you are self-employed but unable to continue your work
    • you are employed or self-employed but had a reduction of at least 50% in your average weekly income as compared to the previous year.
• These updated regulations will apply from December 19, 2021, to February 12, 2022.

Targeted COVID-19 Support Measures for Canadian Businesses

On December 17, 2021, the targeted COVID-19 support measures received Royal Assent. These measures include:

• Increasing the subsidy rate for the Canada Recovery Hiring Program from 20 per cent to 50 per cent. The increased rate will help organizations continue to hire back workers and create the additional jobs Canada needs for a full recovery.
• The Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy ended on October 23, 2021, and have been replaced by targeted support to organizations that are still facing significant pandemic-related challenges. Support will be available through two streams:
  • Tourism and Hospitality Recovery Program, which will provide support through wage and rent subsidies to, for example, hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent. Eligible organizations would be required to meet the following two conditions to qualify for this program:
    • An average monthly revenue reduction of at least 40 per cent over the first 13 claim periods for the CEWS (12-month revenue decline); and
    • A current-month revenue decline of at least 40 per cent.
  • Hardest-Hit Business Recovery Program, which will provide support through wage and rent subsidies. It will support other organizations that have faced deep losses, with a subsidy rate of up to 50 per cent. Eligible organizations would be required to meet the following two conditions to qualify for this program:
    • An average monthly revenue reduction of at least 50 per cent over the first 13 claim periods for the CEWS (12-month revenue decline); and
    • A current-month revenue decline of at least 50 per cent.
• Increasing the monthly cap on eligible rent expenses that can be claimed. To better respond to the needs of organizations, the government is increasing the aggregate monthly cap on eligible expenses that can be claimed from $300,000 to $1 million (including amounts claimed by affiliated entities) starting on October 24, 2021.

These COVID-19 programs are extended until May 7, 2022, with the authority to further extend them, through regulation, until July 2, 2022.

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