Canada Recovery Hiring Program (CRHP) Overview

What is the Canada Recovery Hiring Program?

The Canada Recovery Hiring Program (CRHP) is a hiring subsidy program announced in the April 2021 budget. It can help you hire more staff even if you are still experiencing qualifying revenue declines between June 6 and November 20, 2021.

Subsidy amounts will ramp down slowly over time for both the Canada Emergency Wage Subsidy (CEWS) and the CRHP. Retailers can apply for whichever program offers the higher subsidy in a given claim period. Claim periods for the CRHP have the same start and finish dates as those for CEWS, for the periods to which the CEWS has been extended. But you can only apply for one of these subsidies, not both, in a claim period.

On June 3, the government announced that the CRHP should be available retroactively to June 6. Note that the details below are subject to potential Parliamentary negotiations as the budget moves toward being passed in the legislature.

Who can apply?

Employers eligible for the Canada Emergency Wage Subsidy would generally be eligible for the hiring subsidy. However, a for-profit corporation would be eligible for the hiring subsidy only if it is a Canadian-controlled private corporation (CCPC).

The Canada Recovery Hiring Program is for Canadian-controlled private corporations, individuals, charities, non-profits and certain partnerships. Eligible employers (or their payroll service provider) would be required to have had a payroll account open with the Canada Revenue Agency on March 15, 2020.

How does the subsidy work?

The CRHP will begin in the June 6 – July 3 claim period with a 50% subsidy rate for incremental costs for active employees. The subsidy rate will decrease over the duration of the subsidy, going down to 20% by the October 24 – November 20 claim period.

The amount you get from the subsidy will be equal to that claim period’s subsidy rate multiplied by your incremental costs. Incremental costs refer to the difference between your baseline payroll and your payroll in a given claim period. Baseline payroll for every CRHP claim period is equal to your payroll amount from March 14 to April 10, 2021. 

Eligible payroll includes salary, wages, and other remuneration for which employers are required to withhold income taxes – and is limited to $1129/week per employee in both the baseline and qualifying period.

The hiring subsidy is not available for furloughed employees.

Claim and Reference Periods

To qualify for a hiring subsidy, an eligible employer would have to have experienced a decline in revenues sufficient to qualify for the Canada Emergency Wage Subsidy in that qualifying period. Since recent changes to the CEWS mean it will not be available from July 4, 2021 onward to retailers with revenue declines of less than 10%, neither will the hiring subsidy.

For qualifying periods where the Canada Emergency Wage Subsidy is no longer in effect, an eligible employer would have to have experienced a decline in revenues of more than 10 per cent.

In other words, the CRHP qualifying revenue decline criteria are generally the same as those under CEWS.  If for your CEWS applications you are using the reference period alternative of an average of January and February 2020 revenue, you will need to use the same approach for the hiring subsidy.  

How to Apply

Retailers should apply for the CRHP through the CRA.

More information

Federal Budget Chapter 4.1

June 2 government news release

Q&As

  • How do I know if my company is a Canadian-controlled private corporation (CCPC)?

    The CRA has a list of requirements that you must meet at the end of the tax year in order to be a Canadian-controlled private corporation (CCPC).

    The general theme is that the CCPC label is restricted to private companies controlled by Canadian individual and private corporate residents. 

    View CRA CCPC Requirements

  • How do I know if my company is a Canadian-controlled private corporation (CCPC)?

    The CRA has a list of requirements that you must meet at the end of the tax year in order to be a Canadian-controlled private corporation (CCPC).

    The general theme is that the CCPC label is restricted to private companies controlled by Canadian individual and private corporate residents. 

    View CRA CCPC Requirements

  • Qu’est-ce que le Programme d’embauche pour la relance économique du Canada ?

    Afin d’aider les détaillants subissant des baisses de revenus à engager et à retenir du personnel, le Programme d’embauche pour la relance économique du Canada (PEREC) consent aux employeurs admissibles des subventions pour qu’ils puissent payer leurs employés du 6 juin au 20 novembre 2021.

    Dans sa phase initiale, les subventions du PEREC peuvent atteindre 50 % de la rémunération supplémentaire versée aux employés actifs. Le taux de subvention à l’embauche diminuera ensuite jusqu’à 20 % en novembre.  Les employeurs admissibles peuvent se prévaloir du PEREC ou et de la SSUC, pas des deux, pour une même période d’admissibilité.

    Consulter l’Aperçu du PEREC du CCCD

  • Comment puis-je obtenir de l’aide pour payer mon personnel si la SSUC prend fin cet été ?

    Afin d’aider les détaillants subissant des baisses de revenus à engager et à retenir du personnel, le Programme d’embauche pour la relance économique du Canada (PEREC) consent aux employeurs admissibles des subventions pour qu’ils puissent payer leurs employés du 6 juin au 20 novembre 2021.

    Dans sa phase initiale, les subventions du PEREC peuvent atteindre 50 % de la rémunération supplémentaire versée aux employés actifs. Les employeurs admissibles peuvent se prévaloir du PEREC ou de la SSUC, pas des deux, pour une même période d’admissibilité.

    Les rémunérations admissibles – qui comprennent le salaire, les traitements et toute autre rémunération sur lesquels les employeurs sont tenus d’effectuer des retenues d’impôt – sont limitées à 1 129 $ par semaine par employé.

    Consulter l’Aperçu du PEREC du CCCD

  • How can I get help paying my staff if the CEWS subsidies are going away this summer?

    To help retailers experiencing revenue reductions to hire and retain staff, the Canada Recovery Hiring Program (CRHP) will be available to eligible employers to subsidize payroll between June 6 and November 20, 2021.

    The CRHP will begin by paying up to 50% of incremental costs for active employees. Eligible employers may claim either CRHP or CEWS for a particular qualifying period, but not both.

    Eligible remuneration includes salary, wages, and other remuneration for which employers are required to withhold income taxes – and is limited to $1129/week per employee.

    View RCC’s CHRP Overview

  • What is the Canada Recovery Hiring Program?

    To help retailers experiencing revenue reductions to hire and retain staff, the Canada Recovery Hiring Program (CRHP) hiring subsidy will be available to subsidize payroll at eligible employers between June 6 and November 20, 2021.

    The CRHP will begin by paying up to 50% of incremental costs for active employees and will ramp down this subsidy rate to 20% by November. Eligible employers may claim either CRHP or CEWS for a particular qualifying period, but not both.

    View RCC’s CHRP Overview

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