Canada effectively nationalizing private payrolls amid virus

Canada announced Monday it is effectively nationalizing many private payrolls by offering businesses large and small a 75% wage subsidy for their employees amid the coronavirus pandemic.

Prime Minister Trudeau said businesses that have seen a 30% 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% of salary on the first 58,700 Canadian dollars (US$41,474) that is earned. That means up to $847 Canadian (US$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% 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% 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.