Updated March 2026 · Verified against SkillsPEI (Government of PEI) guidelines
✓ First-Timer Friendly Reimbursement Est. 2005
Grant Provincial Active

Employ PEI (Wage Subsidy)

SkillsPEI (Government of PEI)
Maximum Funding
Up to 50% of wages (max $12.50/hr) for...
Ongoing
Visit Official Program →
Difficulty
Easy
Payment
Reimbursement
Trend
Stable
First-Timers
Friendly ✓
Co-Funding
50%
Employ PEI (Wage Subsidy) provides up to Up to 50% of wages (max $12.50/hr) for up to 20 weeks subsidy covering up to 50% of wages (maximum $12. The program covers up to 50% of eligible costs. Applications are accepted on an ongoing basis. (As of March 2026, verified against SkillsPEI (Government of PEI) program guidelines)

Eligibility & Details

What this program funds and who can apply

Free

Program Description

Wage subsidy covering up to 50% of wages (maximum $12.50/hour) for up to 20 weeks for PEI businesses hiring unemployed workers who have been out of high school for 2+ years. One of the most accessible provincial wage subsidy programs in Canada with minimal application requirements.

Eligibility Requirements

  • Private sector business on Prince Edward Island
  • Employee must be unemployed at time of hiring
  • Employee must have been out of high school for 2+ years
  • Position must be a new addition to workforce (not replacing existing employee)
  • Employer must demonstrate ability to retain employee after subsidy period
Provinces
Prince Edward Island
Industries
All
Business Stage
Startup Growth Established Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
Est. Hours
4h
First-Timer
Friendly

Funding Details

Amount
Up to 50% of wages (max $12.50/hr) for up to 20 weeks
Type
Grant
Level
Provincial
Co-Funding
Up to 50% of eligible costs
Deadline
Ongoing

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
Low
Effort
~4 hours
Approval
Good
Accessibility
--/5
Competition
--/5
Approval Rate
--%

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Approval likelihood, realistic amounts, competition level, and what winners look like
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What You Need to Get Approved
Everything reviewers look for — so you apply with confidence, not guesswork

How to Win

Insider tips, common pitfalls, and what successful applicants look like

Premium
Insider Tip

One of the most accessible wage subsidies in Canada — minimal paperwork and fast approval. Apply before the employee starts to ensure approval. The program is designed to reduce barriers for both employers and job seekers, so the eligibility criteria are deliberately broad. Can be used strategically to trial new positions with reduced financial risk. Combine with other SkillsPEI programs (like Graduate Mentorship) for different hires to maximize workforce development funding.

See what trips up most applicants for this program — and how to avoid it. Unlock with Premium →

Success Profile

PEI small businesses across all sectors — restaurants, tourism operators, tradespeople, retail, agriculture, and professional services. Most effective for businesses expanding their team or replacing seasonal workforce gaps with permanent positions. Employers who demonstrate retention after the subsidy period build a track record for faster future approvals.

See what successful applicants for this program actually look like. Unlock with Premium →

Evaluation Criteria

Applications assessed on: employee is currently unemployed, employee has been out of high school for 2+ years, position is a genuinely new addition to the workforce (not replacement), employer demonstrates ability and intent to retain employee after subsidy period, position offers meaningful full-time employment and on-the-job training.

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Application Steps

1 Complete the Employ PEI Application for Employers form
2 Prepare a detailed job description including duties, education requirements, and timelines
3 Gather the new employee's contact information and confirm their unemployment status
+6 more steps

Required Documents 6

Employ PEI employer application form
Job description for subsidized position
Confirmation employee is currently unemployed
Confirmation employee has been out of high school 2+ years
Business registration and payroll information
Retention plan post-subsidy

Eligible Expenses 2

  • Wages for the new full-time employee during the training/subsidy period (up to 50%, max $12.50/hr)
  • On-the-job training costs embedded in the wage subsidy period

Ineligible Expenses 7

  • CPP employer contributions (employer responsibility)
  • EI employer premiums (employer responsibility)
  • Workers' Compensation premiums (employer responsibility)
  • Employee benefits beyond statutory minimums
  • Equipment, tools, or materials for the new position
  • Training provider fees (use Workplace Skills Training program for those)
  • Wages above $12.50/hr (employer covers the difference)

Intake Periods

Continuous intake year-round with no fixed deadlines. Applications accepted on a first-come, first-served basis subject to available funding. Apply and receive approval before the employee's start date.

Deadline Notes

Ongoing program with continuous intake. Applications accepted year-round on a first-come, first-served basis subject to available funding. Approval typically required before employee start date.

Ineligible Organizations

  • Public sector employers and government departments
  • Companies in the tobacco industry
  • Companies in the adult entertainment industry

Get the step-by-step application guide — documents, timeline, and what to prepare. Unlock with Premium →

Compatible Programs

Canada Summer Jobs Atlantic Immigration Program ACOA — Business Development Program (BDP) Innovation PEI Programs
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk

Very low. Reimbursement-based — funds only flow after wages are paid and documented. If employee leaves or is terminated during the subsidy period, remaining subsidy payments stop but no clawback of amounts already reimbursed.

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See your total funding potential across 4 programs
Stacking amounts, clawback details, government stacking limits, and tax implications
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How Employ PEI (Wage Subsidy) Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
Employ PEI (Wage Subsidy) Up to 50% of wages Easy Reimbursement Ongoing
Canada Summer Jobs Up to 100% wage subsidy Easy Reimbursement Annual — 2026 cycle...
Ocean Supercluster Up to $5 million Hard Reimbursement Call-specific — no open...
Atlantic Canada Opportunities Agency ... Varies Moderate Reimbursement Ongoing
Business Development Program (BDP) - ... Varies (Repayable Contribution) Moderate Reimbursement Ongoing

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