To support that recruitment, the update sets out a series of incentives. The government is promising an apprenticeship grant that will provide a $400 per week income top-up to apprentices while they complete in-class training. There will also be a one-time bonus of $5,000 for apprentices who complete their Red Seal certification.
For employers, the document proposes a first-year wage subsidy of up to $10,000 for those who hire apprentices. Additional funding is also being allocated to modernize training programs, including the introduction of online exams and digital logbooks.
The fiscal plan further notes that Ottawa intends to provide $25 billion dollars in seed money to launch a new vehicle called the Canada Strong Fund. The government describes this amount as capital to kick start the fund. The spring statement does not specify in detail within the publicly released summary where the $25 billion dollars will be sourced from.
CPP contribution cut and tax credit changes
The update also confirms a change to Canada Pension Plan contribution rates for workers and employers. The government says it will introduce legislation to lower the combined CPP rate from 9.9% to 9.5% of an employee’s paycheque, starting next year.
Tuesday’s economic update cites the most recent actuarial report on the CPP, which the government says indicates there is room to reduce the contribution rate while keeping the plan solvent. The document adds that provincial finance ministers have agreed to the change. According to the estimates in the update, the rate reduction will translate into annual savings of about $133 for an employee earning $70,000 a year.
