Hiring in Prince Edward Island can be challenging, especially when training costs add up before a new employee becomes productive. The Employ PEI wage subsidy helps reduce this burden by covering up to half of a new hire’s wages during their training period. For eligible employers, this support can mean thousands of dollars in short-term payroll help while you build your team.
Employ PEI is a provincial wage subsidy program delivered by SkillsPEI. It is designed to help employers hire and train unemployed people who are looking for full-time work in PEI.
The length of the training period is set by SkillsPEI based on the job and your training plan. The subsidy is paid to the employer to help cover payroll costs during training.
Eligible employers include:
Your business must be legally registered and operating in Prince Edward Island.
The person you hire must:
Employ PEI does not cover existing employees or internal promotions. The position must be for a new hire.
Applying is straightforward, but timing is important. You should apply before the new employee starts work.
Before making a job offer, check that:
Tools like GrantHub’s eligibility matcher can help you quickly see which wage subsidy programs fit your business.
SkillsPEI expects a training plan that explains:
A short or unclear training plan is a common reason applications are delayed.
Send your application to SkillsPEI. You may need to provide:
Do not hire the employee before you get approval, unless SkillsPEI says it is allowed.
Once SkillsPEI approves your application, you can start onboarding and training. You must:
Employ PEI funding may need to be repaid if you do not meet program terms. For example, if the training period is not completed or the employee is let go without cause, you may have to repay some or all of the subsidy.
Hiring before approval
If the employee starts work before SkillsPEI approves your application, those wages may not be eligible.
Weak training plans
A vague or incomplete training plan can delay approval or shorten the subsidy period.
Assuming the subsidy is always non-repayable
Repayment may be required if you do not follow the program rules. Make sure you understand your obligations before applying.
Using the program for existing staff
The wage subsidy only covers new hires who were unemployed when hired.
Q: How much does the Employ PEI wage subsidy pay?
Employ PEI covers up to 50% of wages, up to $12.50 per hour during the approved training period.
Q: Is Employ PEI a grant or a loan?
It is a wage subsidy that may need to be repaid if program terms are not met, such as not completing the training period.
Q: How long does the wage subsidy last?
The support lasts for the approved training period, which depends on the role and skills needed.
Q: Can non-profits or municipalities apply?
Yes. Non-profits, municipalities, and band or tribal councils can apply for Employ PEI.
Q: Can I combine Employ PEI with other wage subsidies?
Stacking may be limited. SkillsPEI checks other funding sources to avoid double wage coverage.
If you plan to hire in Prince Edward Island, the Employ PEI wage subsidy can help cut your payroll costs during training. GrantHub tracks hundreds of wage subsidy and hiring programs across Canada—see which ones fit your business and hiring plans before you apply.
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