Canada announced Monday it is effectively nationalising many private payrolls by offering businesses large and small a 75 per cent wage subsidy for their employees amid the coronavirus pandemic.
Prime Minister Trudeau said businesses that have seen a 30 per cent decrease in revenue are eligible.
"For people to get through this tough time and for the economy to rebound, people have to keep their job," Trudeau said.
The prime minister said the government will cover up to 75 per cent of salary on the first 58,700 Canadian dollars (USD 41,474) that is earned. That means up to 847 Canadian dollar (USD 598) a week.
Trudeau did not put a price tag on it or say how long it would last but he called it a bridge to better times.
Trudeau previously announced the 75 per cent wage subsidy for small businesses but announced Monday the number of employees a company has will not determine whether or not it gets support.
He also said non-profits and charities are also eligible.
The Canadian government reversed course after initially only offering a 10 per cent wage subsidy earlier this month. The new offer is backdated to March 15.
These are measures that will make a huge difference, Trudeau said.
Trudeau warned of severe penalties if companies try abuse the subsidy program.
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