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Home  ->  Federal Budget ->  COVID-19 Financial Relief  ->   Canada Recovery Hiring Program (CRHP)

Canada Recovery Hiring Program (CRHP) For Employers

Income Tax Act s. 125.7

Canada Revenue Agency (CRA) CRHP

Details on when and how to apply for the additional CRHP periods and the new wage and rent subsidies were announced on December 21, 2021.

Canada Recovery Hiring Program Frequently Asked Questions

Local Lockdown Program

February 9, 2022:  Proposal to expand access to the Local Lockdown Program by one month, until March 12, 2022.

bulletfor businesses, charities, and non-profits affected by a qualifying public health restriction
bulletDecember 22, 2021 Temporarily Expanding Eligibility for the Local Lockdown Program and the Canada Worker Lockdown Benefit
bulletfor December 19, 2021 until February 12, 2022, temporarily expanding eligibility
bulletbusiness can qualify if subject to a public health order that reduces the entity's capacity at the location bo 50% or more, and
bulletactivities restricted by the public health order accounted for at least 50% of the entity's total qualifying revenues during the prior reference period
bulletcurrent-month revenue loss threshold reduced from 40% to 25%. No requirement for a historical 12-month revenue decline.


The legislation for the CRHP is found in Bill C-30, Budget Implementation Act, 2021, No. 1, which received Royal Assent on June 29, 2021.

Bill C-2 was introduced on November 24, 2021, to extend the CRHP until May 7, 2022 for eligible employers with current revenue losses above 10% and increase the subsidy rate to 50%.  See the November 24, 2021 News Release, and the December 21, 2021 News Release.  This new legislation replaces the CEWS and CERS.  

CRHP Periods

The CRHP is available for the CEWS periods 17 (Jun 6 to Jul 3, 2021) to 21 (Sep 26 to Oct 23, 2021), and for 1 additional period, the 4 weeks ending Nov 20, 2021.  Those eligible in periods 17 to 21 can apply for the CEWS or the CRHP, whichever subsidy gives them the higher amount.

For periods 22 and later, October 24, 2021 to May 7, 2022, for each claim period, employers can claim either the higher of the CRHP, or the wage portion of one of these programs:

the Tourism and Hospitality Recovery Program (THRP), or

the Hardest-Hit Business Recovery Program (HHBRP)

Video Tax News article with useful links regarding the new programs.

Revenue Reduction Periods 17 to 22

The required revenue reduction to be eligible for the CRHP is more than 0% in period 17, and more than 10% in periods 18 to 22.

CRHP Base Period Remuneration

The base period for the CRHP is March 14 to April 10, 2021.  Your overall pay (eligible remuneration) for each claim period is compared to the base period to determine the increase from that period.

Recovery Wage Subsidy Rate / Application Deadlines

Period 4 Wk Period
Ending Date
17 Jul 3/21 50% Dec 30/21
18 Jul 31/21 50% Jan 27/22
19 Aug 28/21 50% Feb 24/22
20 Sep 25/21 40% Mar 24/22
21 Oct 23/21 30% Apr 21/22
22 Nov 20/21 20% May 19/22

The above deadlines are for applications for the CRHP, or to increase the amount of a previous claim.

The deadline is 180 days after the end of the claim period.

There is no deadline to cancel or reduce the amount of a previous claim.

Recovery Wage Subsidy Calculation

The subsidy is calculated as:

subsidy rate x [total amount of current period remuneration for all eligible employees less the total amount of base period remuneration (Mar 14 to Apr 10, 2021) for all eligible employees]


bulletThe amounts used in the calculation for both current period and base period remuneration cannot exceed
bullet$1,129 per week for each eligible employee
bulletif the employee is a non-arm's-length employee, the pre-crisis remuneration of the employee determined for that week
bulletif the employee is on leave with pay, $0

Greater of Wage Subsidy and Recovery Subsidy

Income Tax Act s. 125.7(9.2)

Both the wage subsidy (CEWS) and recovery subsidy (CRHP) must be calculated, and whichever provides the greater subsidy must be claimed.

The Income Tax Act deems the amount of the lesser subsidy to be zero, or if the CEWS and CRHP are equal, it deems the CRHP to be zero.

Thus, if the calculations for both CEWS and CRHP are equal, the employer must claim the CEWS subsidy and not the CRHP subsidy.

When is the CRHP Included in Taxable Income?

As with the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS), the CRHP is included in income "immediately before the end of the qualifying period to which it relates".  This provision is in S. 125.7(3) of the Income Tax Act.

Revised: January 24, 2024


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