Maximizing Wage Subsidies: Government Funding for Employers in the New Fiscal Year

As we step into a new fiscal year, businesses across Canada have fresh opportunities to leverage government funding programs designed to support hiring and training development. Many wage subsidy programs have reopened, offering employers financial incentives to hire students, recent graduates, and young professionals.

Understanding the types of funding programs available and their eligibility criteria can help businesses maximize their funding potential while fostering talent development.

In this blog post, we will explore the different categories of wage subsidy programs, including tax credits, student hiring grants, and new graduate/youth internship grants.

Whether your organization is looking to hire co-op students, recent graduates, or skilled youth, these funding programs can significantly offset payroll expenses and support workforce growth.

Please keep in mind that eligibility criteria and funding programs change frequently. Connect with our Ryan Canada Government Funding team to learn more about your eligibility for current funding opportunities.

Types of Canadian Wage Subsidy Programs Available

While specific funding programs may vary by region, industry, and business size, there are three primary categories of wage subsidies that employers should be aware of:

Student (Co-op) Hiring Grants

For employers looking to hire post-secondary students, various government funding programs provide wage subsidies to offset payroll costs. These grants are designed to encourage businesses to provide students with real-world work experience, particularly in high-demand fields such as STEM (Science, Technology, Engineering, and Mathematics), digital technology, and environmental sectors.

Funding

• 50% to a maximum of $5,000; or
• 70% to a maximum of $7,000 for under-represented groups.

Employer Eligibility

• Registered Canadian business or nonprofit; and
• Not a federal, provincial, or municipal government organization; and
• Financially capable of hiring a student for a part- or full-time work term, paying them consistently, and providing meaningful work experience.

Placement Eligibility

• Can be full-time or part-time positions; and
• Must take place in Canada; and
• Must be on payroll, not as a contractor; and
• Cannot already be federally funded.

Student Eligibility

• A Canadian citizen, permanent resident, or protected person as defined by the Immigration and Refugee Protection Act; and
• Registered as a full-time student in a post-secondary institution program; and
• Not an international student requiring (or on) a work permit; and
• Registered in a program or course with a Work-Integrated Learning (WIL) component as part of their study plan; and
• Not an immediate family member of the employer.

Many student hiring grants are provided through federal programs such as the Student Work Placement Program (SWPP) or provincial initiatives tailored to specific industries. Employers interested in hiring co-op students should be aware of application deadlines and program funding caps, as these grants are often in high demand.

New Graduate/Youth Internship Grants

New graduate and youth hiring grants support businesses that hire recent graduates and young professionals, particularly in emerging and high-growth sectors. These programs are designed to ease the transition from school to full-time employment and help businesses access fresh talent.

Funding

• Varies: 50–80% to a maximum of $25,000.

Employer Eligibility

• Registered Canadian business or nonprofit.

Placement Eligibility

• STEM roles; and
• Minimum of six months in length; and
• Not funded by another federally funded program.

Candidate Eligibility

• A Canadian citizen, permanent resident, or protected person as defined by the Immigration and Refugee Protection Act; and
• Be between the ages of 15–30 (inclusive) at the start of the internship; and
• Be new (not yet employed) to the organization applying for funding; and
• Receive CPP/EI contributions for the duration of the funding period as a payroll employee; and
• Not an immediate family member of the employer.

Employers who qualify for these grants can benefit from skilled, motivated employees while reducing hiring costs. These programs may have eligibility requirements related to the graduate’s field of study, the employer’s industry, and the duration of the internship or employment period.

Tax Credits for Hiring

Tax credits are a valuable form of financial assistance that allow businesses to reduce their tax liability when hiring certain types of employees. These credits are typically aimed at employers who hire students, apprentices, or individuals from underrepresented groups.

Common tax credit programs include:

• Apprenticeship Job Creation Tax Credit (AJCTC): A federal tax credit offering up to $2,000 per apprentice per year.
• Provincial Hiring Tax Credits: Many provinces provide additional tax incentives for hiring youth, Indigenous employees, or individuals with disabilities.

Eligibility for tax credits varies based on program requirements, industry, and the employment duration of the hired individual. These credits can be claimed when filing annual corporate taxes, making them an effective long-term funding strategy for businesses.

Eligibility for Canada’s Wage Subsidy Programs

With a variety of government funding programs available, it can be challenging to determine which one aligns best with your business needs. Generally, eligibility depends on factors such as:

• Business Size and Industry: Some programs are designed for small and medium-sized enterprises (SMEs), while others focus on specific industries such as technology, agriculture, or clean energy.
• Employment Type: Programs may have restrictions on full-time vs. part-time roles, contract duration, and job responsibilities.
• Candidate Eligibility: Many student and youth grants require candidates to be enrolled in a post-secondary program, recently graduated, or under a certain age limit (e.g., under 30 years old).

Since eligibility criteria and funding programs change frequently, we recommend connecting with our Ryan Canada Government Funding team to assess your eligibility for current funding opportunities.

Accessing Government Funding Opportunities

Navigating government funding programs can be complex, but taking advantage of available wage subsidies can provide a competitive edge in workforce development. As the new fiscal year begins, now is the perfect time to explore funding opportunities that align with your hiring strategy.

To learn more about how your business can qualify for wage subsidies, contact our team today. Our team of government funding experts can provide up-to-date information on available funding programs and guide you through the application process to ensure you receive the maximum funding possible.