The Provincial Government released details today on the Newfoundland and Labrador COVID-19 Essential Worker Support Program. This program, which is cost-shared with the Federal Government, will provide a one-time payment to individuals who meet eligibility criteria and who work in professions included in the Government of Canada’s “Guidance on Essential Services and Functions in Canada During the COVID-19 Pandemic” document, available on the Public Safety Canada website.
In order to determine whether individuals qualify for compensation, in addition to working in an identified essential worker position they must also fall within the following hours and income thresholds during the 16-week eligibility period between March 15 and July 4, 2020.
| Total Hours Worked (16 Week period) |
Maximum Monthly Income (Gross) |
Lump Sum Payment Amount |
| 190-259 | $1,000 | $600 |
| 260-349 | $1,400 | $900 |
| 350-449 | $2,000 | $1,200 |
| 450-559 | $2,500 | $1,350 |
| 560+ | $3,000 | $1,500 |
Employers will begin to receive payments on behalf of the employees starting in July, and will then submit payments as part of their regular payroll remittance.The application for compensation will be available after the 16-week eligibility period, and will be administered by the provincial Department of Advanced Education, Skills and Labour. Employers must complete the application on behalf of all qualifying employees, providing proof of the employees’ eligibility. Employers can begin submitting applications on July 6, 2020 and will have until July 30, 2020 in which to apply.
The province will provide an additional 10 per cent of the eligible amount to employers to offset mandatory related payroll costs from this process. Recipients of the Canada Emergency Response Benefit are not eligible for compensation through this essential worker program.
Funding for this program includes an estimated $13.8 million from the Provincial Government and $52.5 million from the Federal Government. More information can be found in the backgrounder below.
Quotes
“Essential workers are not just first responders and those who work in health care, but also those on the front lines of retail, transportation, the restaurant industry and many other professions. Through this program, a diverse range of essential workers will receive compensation that recognizes their support in providing critical services during the COVID-19 pandemic. Thank you for your commitment to the people of Newfoundland and Labrador.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador
“We are encouraging all employers to help us support their staff through the application process, and are providing compensation to help them offset their related costs. The Federal Government is contributing just under 80 per cent of funding for this program, allowing us to support lower income essential workers despite the economic challenges we currently face.”
Honourable Tom Osborne
Minister of Finance and President of Treasury Board
– 30 –
Learn More
Public Safety Canada List of Essential Services and Functions in Canada During the COVID-19 Pandemic
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Media contacts
Jeremy Reynolds
Office of the Premier
709-729-3558
Marc Budgell
Finance
709-729-2477, 689-0430
marcbudgell@gov.nl.ca
BACKGROUNDER
Information on the COVID-19 Essential Worker Support Program
What is the Essential Workers Support Program?
On April 15, 2020, the Government of Canada announced it would provide up to $3 billion in support to increase the wages of low-income essential workers across the country. Details of Newfoundland and Labrador’s program can be found here.
I am an essential worker, how do I know if I am eligible and qualify under the program?
To be eligible under the program, you must meet all of the following conditions:
- Be a resident of Newfoundland and Labrador and legally authorized to work in Canada;
- Be employed or self-employed in any business or organization providing ‘essential services’ as defined in Public Safety Canada’s Guidance on Essential Services and Functions in Canada during the COVID-19 Pandemic;
- Have not received the Canada Emergency Response Benefit (CERB) during the eligibility period from March 15 – July 4, 2020;
- Have worked in both Alert Levels 4 and 5; and
- Meet the eligibility criteria for hours worked and income earned as detailed in the news release.
How much can an essential worker receive through the program?
Designated essential workers will be eligible for the benefit based on the total number of hours worked over the 16-week period from March 15 – July 4, 2020, as outlined below:
| Total Hours Worked (16 Week period) |
Maximum Monthly Income (Gross) |
Lump Sum Payment Amount |
| 190-259 | $1,000 | $600 |
| 260-349 | $1,400 | $900 |
| 350-449 | $2,000 | $1,200 |
| 450-559 | $2,500 | $1,350 |
| 560+ | $3,000 | $1,500 |
Why is my employer being paid 10 per cent MERC?
This is a taxable benefit for the employee. The ten per cent the employer will receive for Mandatory Employer Related Costs (MERC) is related to Canada Pension Plan (CPP), Employment Insurance (EI), and other related payroll costs (which could include payroll tax or other administrative costs) incurred by employers for any wages or benefits paid to employees.
How do I apply for this benefit?
This is an employer application process. The employer will apply on behalf of their employees. More information can be found online.
How do I know if my employer is applying on my behalf?
You will have to speak directly to your employer to confirm that an application has been submitted.
My employer is not applying on my behalf. What can I do?
Applying for the EWSP should be important to employers, as their success depends on the success of their employees. The COVID-19 pandemic has placed particular demands on lower-income workers in certain sectors, including those on the front-line in hospitals and nursing homes, those ensuring the integrity of the food supply, or providing essential retail services to this Province. Government needs employer’s assistance to help these essential workers.
The EWSP is an employer application based program. If your employer has not applied, and you meet both the eligibility criteria and are an essential worker under the Federal Government’s listing, please contact your employer to request them to apply on your behalf.
Why does my employer have to apply when the money is meant for the workers?
We all need to work together to increase the wages of lower-income essential workers during this pandemic. Due to the large number of essential workers providing critical services in this province, the most efficient way to get this much needed income to those workers is through employer payroll.
Where can I get further information?
More information on the program can be found online.
How long will it take individuals to receive their money?
Employers will begin to receive payments on behalf of the employees starting in July 2020. Employers will then submit payments as part of their regular payroll remittance.