Student and Youth Wage Subsidies: Eligible Wages and Costs Explained

Hiring students or young workers can help with staffing needs. However, payroll costs can add up quickly. Student and youth wage subsidies cover part of those wages. Many employers are unsure which costs are actually eligible. This guide explains how student and youth wage subsidies work in Canada. You’ll find details on eligible wages and costs under real programs, including the Get Youth Working Program.

What Counts as Eligible Wages and Costs?

Most student and youth wage subsidies pay back a portion of what you pay a new hire. The details can change from program to program. Still, the rules are often similar across Canada.

Eligible wage costs usually include

Base hourly wages or salary paid to the student or youth
Mandatory employer payroll contributions, such as:
- CPP (Canada Pension Plan)
- EI (Employment Insurance)
- Employer Health Tax (where applicable)
Vacation pay, if required by provincial employment standards

These costs must be directly linked to the subsidized employee and paid during the approved work period.

Costs that are usually not eligible

Overtime premiums
Bonuses or commissions
Training costs not delivered on the job
Equipment, uniforms, or tools
Termination pay or severance
Wages paid before your funding agreement is signed

Claiming costs that are not eligible is one of the most common reasons for repayment requests.

How Eligible Wages Work Under Key Canadian Programs

Here are real examples of how student and youth wage subsidies define eligible wages.

Student Work Placement Program (SWPP) — Federal

The Student Work Placement Program helps employers hire post-secondary students through approved delivery partners.

Funding details

Up to $5,000 per student placement
Up to $7,000 per placement for students from under-represented groups
(including women in STEM, Indigenous students, persons with disabilities, newcomers, and first-year students)

Eligible wages

Student wages paid during the approved placement
Mandatory employer payroll contributions

Employers must hire students through a designated partner organization. The wages must relate to a real work-integrated learning placement.

Get Youth Working Program — Ontario

The Get Youth Working Program supports employers that hire youth aged 16 to 29.

Funding details

A negotiated wage subsidy based on job length and hours
Funded through the Canada–Ontario Workforce Development Agreement

Eligible wages

Hourly wages paid to the youth employee
Required statutory benefits

Key restrictions

Youth must be employed for at least 3 months
Employers must sign the funding agreement before hiring
Preference is given to non-seasonal roles over 6 months

Wages paid before the agreement start date are not eligible for reimbursement.

Clean Foundation — Green Jobs (Nova Scotia)

This program supports youth internships in natural resource sectors.

Funding details

Up to $24,000 per intern
Up to $30,000 for Indigenous youth, youth with disabilities, or those in northern or remote communities
Covers up to 75% of eligible project costs

Eligible wages

Intern wages
Mandatory employer payroll costs

The job must fit eligible sectors like energy, forestry, mining, or earth sciences.

Cooperative Education Incentive — Nova Scotia

This program supports employers hiring co-op students.

Funding details

Reimbursement of $8 per hour
Students must be paid at least $18 per hour plus vacation pay

Eligible wages

Hourly wages paid during a 12–16 week co-op term
Vacation pay required by law

Student Training and Employment Program (STEP) — Yukon

STEP helps Yukon employers hire post-secondary students.

Funding details

Hourly wage support ranging from $22.56 to $27.68 per hour, depending on education level
450 to 600 hours per placement

Eligible wages

Approved hourly wages during the placement period

How to Apply for Wage Subsidies

Applying for student and youth wage subsidies can take some planning. Here are the main steps:

Review program guidelines
Read the eligibility rules for each program. Some require you to apply before hiring.
Prepare your documents
Collect job descriptions, payroll details, and business information.
Submit your application
Many programs use online portals. Double-check all sections before sending.
Wait for approval
Do not hire or start paying the student or youth until you have a signed agreement.
Keep records
Track timesheets and pay stubs. You will need them for reimbursement.

Using tools like GrantHub’s eligibility matcher can help you find programs that fit your hiring plans and keep you on track with deadlines.

Common Mistakes to Avoid

Hiring before approval
Most programs will not reimburse wages paid before a signed funding agreement.
Including non-wage expenses
Equipment, training courses, and bonuses are rarely eligible.
Misunderstanding stacking rules
Some programs allow multiple subsidies, but you usually cannot claim more than 100% of wage costs.
Missing payroll documentation
Incomplete pay records can delay or reduce reimbursements.

For more information, see Common Mistakes Employers Make When Applying for Wage Subsidy Grants.

Frequently Asked Questions

Q: Can student and youth wage subsidies cover 100% of wages?
Most programs cap funding below 100%. For example, SWPP provides a fixed maximum per placement rather than full wage coverage.

Q: Are part-time students eligible for wage subsidies?
It depends on the program. SWPP placements must meet work-integrated learning requirements set by the delivery partner.

Q: Do wage subsidies cover employer CPP and EI?
Yes, many programs allow mandatory payroll contributions as eligible costs, but you must confirm this in your funding agreement.

Q: Can I combine federal and provincial wage subsidies?
Sometimes. Stacking is often allowed, but total funding cannot exceed actual wage costs.

Q: What proof do I need to claim wages?
Expect to submit payroll records, timesheets, and proof of payment.

GrantHub tracks hundreds of active student and youth wage subsidies across Canada. Check which ones match your business profile.

Next Steps

Student and youth wage subsidies can reduce payroll costs if you know which wages and costs qualify. Before hiring, confirm eligibility rules and approval timelines. Tools like GrantHub’s eligibility matcher help you filter programs by province, age group, and role type, so you focus on subsidies that fit your hiring plans.

Student and Youth Wage Subsidies: Eligible Wages and Costs Explained