Employ PEI (Wage Subsidy)

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.

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.

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.

Application Steps

Required Documents 6

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

Compatible Programs

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.