CEWS: What the Canadian Emergency Wage Subsidy Was — and How It Worked

The Canada Emergency Wage Subsidy (CEWS) helped employers keep workers on payroll during the COVID-19 pandemic. While the program has ended, many Canadians still want a simple explanation of what CEWS was, who qualified, how the subsidy was calculated, and whether payments were taxable.

Here’s a clear breakdown.

What CEWS Was

CEWS was a temporary federal program that covered part of an employee’s wages when a business experienced a drop in revenue during COVID-19. The goal was to prevent layoffs and help employers rehire staff.

How the Wage Subsidy Worked

The subsidy amount depended on how much revenue a business lost during each claim period.

• At its highest point, CEWS covered up to 75% of wages.
• Later periods used a sliding scale.
• The program ran from March 2020 to October 2021.

Employers applied through the CRA online portal for each period.

Who Was Eligible

CEWS was available to:

• Most businesses and charities
• Certain non-profits
• Some public institutions

To qualify, an employer needed a CRA payroll account and had to show a revenue drop for the period they were claiming.

Was CEWS Taxable?

Yes. CEWS was considered taxable income for employers.
It didn’t change how employees’ wages were taxed — it simply helped employers cover payroll costs.

What Happened After CEWS Ended

After the program ended, the government offered short-term replacement programs like the Canada Recovery Hiring Program (CRHP). These supports have also ended.

What Employees Should Know Today

Even though CEWS is over, employment rights remain the same. If your employer:

• Ends your employment
• Reduces your hours or pay
• Makes major changes to your job
• Pressures you to resign

…you are owed full severance pay — as much as 24 months. Whether your employer received CEWS has no impact on your entitlements.

Get Advice Before You Sign Anything

If you’re facing a layoff, termination, or job change, speak to an employment lawyer before accepting a severance offer. You may be owed much more than you’ve been told.

Contact Samfiru Tumarkin LLP for a confidential consultation.

Additional Resources

Learn more about additional benefits available during the pandemic:

• Canada Emergency Response Benefit (CERB)
• Canada Recovery Benefit (CRB)
• Canada Emergency Student Benefit
• Canada Worker Lockdown Benefit (CWLB)