If you plan to hire, train, or upskill staff, workforce development and wage subsidy programs can help lower your costs. But it is important to know which expenses are eligible and which are not. Most programs only reimburse certain costs. Submitting ineligible claims is a common reason for funding delays or money being taken back.
This guide explains the expenses usually covered by workforce development and wage subsidy programs in Canada. We focus on the Alberta Jobs Now Program and similar federal or sector-based programs.
Most workforce development and wage subsidy programs help cover direct employment and training costs. Each program has its own rules, but the main categories below are covered by most major Canadian programs.
Wages are the main eligible expense.
Most wage subsidy programs reimburse:
Example: Alberta Jobs Now Program
This program gives a wage subsidy to employers who hire and train unemployed or underemployed Albertans. The subsidy is based on wages paid during the approved training period and is capped by program rules.
Other examples:
Some programs allow certain payroll costs, but many do not.
May be eligible:
Often not eligible:
For example, the BioTalent Entry-Level Career Program does not allow employer CPP and EI contributions as eligible costs.
Always check the program’s cost guide before including payroll extras.
Workforce development programs often fund training that is directly related to the job.
Eligible training costs may include:
Under the Alberta Jobs Now Program, the subsidy supports training while the employee is on payroll, not general professional development.
You can use tools like GrantHub’s eligibility matcher to filter programs by province and training type, which helps if you need to cover training costs.
A few workforce programs offer extra funding for participant supports.
These may cover:
These supports are specific to each program and are usually capped. For example, some sector wage subsidies allow small amounts for wraparound supports, but most provincial programs do not.
Most workforce development and wage subsidy programs do not cover the following costs:
Claiming these costs can lead to smaller reimbursements or audit problems.
Many employers think CPP, EI, and benefits are included. Most programs only cover gross wages unless they say otherwise.
Wage subsidies almost never cover wages paid before approval. If an employee starts before you get the green light, those wages are usually not eligible.
General leadership or soft-skills training is often excluded unless it is clearly linked to the job.
Some programs, like BioTalent, do not let you use other federal funding for the same position.
Q: Does the Alberta Jobs Now Program cover all employee wages?
No. The program covers only a portion of wages. You must pay the employee first, then claim the eligible part based on program rules.
Q: Are current employees eligible for wage subsidies?
Usually not. Most wage subsidies are for new hires who meet certain criteria, such as being unemployed or underemployed.
Q: Can I claim both training costs and wages?
Sometimes. Some programs include training support in the wage subsidy. Others treat training as a separate cost. Always check the program details.
Q: Are part-time employees eligible?
Many programs require full-time work (30+ hours per week), such as the BioTalent Entry-Level Career Program.
Q: How do wage subsidies get paid out?
Most programs pay employers after wages are paid, based on payroll records and progress reports.
Workforce development and wage subsidy programs can help reduce hiring costs, but only if you claim the right expenses. Program rules change by province, sector, and worker group. GrantHub tracks active workforce development and wage subsidy programs across Canada. This helps you check which expenses are eligible for your business before you apply.
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