The 2021 Federal Budget introduced the
new CRHP which would provide eligible
employers with a subsidy of up to 50% of
the incremental remuneration paid to
eligible employees in respect of June 6,
2021 to November 20, 2021. The higher
of the Canada Emergency Wage Subsidy
(CEWS) or CRHP may be claimed for a
particular qualifying period, but not both.

Eligible employers
Employers eligible for CEWS would generally be eligible
for CRHP. However, a for-profit corporation would be
eligible only if it is a Canadian-controlled private
corporation (subject to a few minor exceptions). Eligible
employers (or their payroll service provider) must have had a
CRA payroll account open March 15, 2020.

Eligible employees
The same employees eligible for CEWS are proposed to
be eligible for CRHP, except that CRHP will not be available
for furloughed employees.

Amount of subsidy
The subsidy is computed as the incremental remuneration
multiplied by the applicable hiring subsidy rate for that
period. The rate is 50% for the periods from June 6 – August
28, followed by 40% from August 29 – September 25, 30%
from September 26 – October 23, and 20% from October 24 –
November 20.

Incremental remuneration for a qualifying period means the
difference between:
– an employer’s total eligible remuneration paid to
eligible employees for the qualifying period, and
– its total eligible remuneration paid to eligible
employees for the base period (March 14 to April 10,
The same types of remuneration eligible for CEWS would
also be eligible for CRHP (e.g., salary, wages, and other
remuneration for which employers are required to withhold or
deduct amounts). The amount of remuneration for employees would be based solely on remuneration paid in respect of
the qualifying period.
Eligible remuneration for each eligible employee would be
subject to a maximum of $1,129 per week, for both the
qualifying period and the base period.
Similar to CEWS, the eligible remuneration for a non-arm’s
length employee for a week will also be limited based on
their “baseline remuneration" (that is, their pre-COVID
remuneration levels).
Required revenue decline
To qualify, the eligible employer would have to have
experienced a decline in revenues. For the qualifying period
between June 6, 2021 and July 3, 2021, the decline would
have to be greater than 0%. For later periods, the decline
must be greater than 10%.
Application deadline
Similar to CEWS and CERS, an application for a qualifying
period would be required to be made no later than 180 days
after the end of the qualifying period.

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