Updated June 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 up to 20 weeks
Ongoing
Visit Official Program →
Difficulty
Easy
Payment
Reimbursement
Trend
Stable
First-Timers
Friendly ✓
Co-Funding
50%
Employ PEI (Wage Subsidy) provides Up to 50% of wages (max $12.50/hr) for up to 20 weeks. 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. The program covers up to 50% of eligible costs. Applications are accepted on an ongoing basis.

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Eligibility & Details

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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

  • Registered private sector businesses, organizations (including non-profits), municipalities and band/tribal councils on Prince Edward Island
  • New employee must be unemployed and looking for full-time work, and legally authorized to work in Canada (Canadian citizen or permanent resident)
  • 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
  • The wage rate paid to the new employee must be within the wage range for the targeted occupation
  • The application also screens for employees on layoff or awaiting recall, displacement of existing staff, a labour stoppage or dispute in progress, and union concurrence where applicable
Provinces
Industries
All
Business Stage
Startup Growth Established Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
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

Competition
Low
Deadline
Ongoing
Approval
Good
Accessibility
5/5

Very accessible — simple application

Competition
2/5

Below average competition

Difficulty
1/5

Simple — quick application

Approval Rate
Processing Time
Budget Trend
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How to Win

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

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Insider Tip

One of the most accessible wage subsidies in Canada — a short form, but it needs a week-by-week training plan and a sustainability plan before SkillsPEI will assess it and fast approval.

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Success Profile

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Evaluation Criteria

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How SkillsPEI judges your application

What the reviewer scores, what gets applications rejected, and what to write.

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Written answers7no length limits stated
Judged on5 criteria
Can reject you7 rules
To attach6 documents

Distilled from 3 source documents on princeedwardisland.ca, condensed into one brief. Sources as of 2026-09-11.

3 sources

What SkillsPEI favours

Wage subsidy for on-the-job training of a new full-time employee◦

“An employer receives a temporary wage subsidy to provide on-the-job training for a new full-time employee.”

2 more, in their words

The form2 prompts shown

Applicant information2 sections
  1. 1A - Applicant Informationshort answer
  2. 2A - Contact Information and Primary Contactshort answer
Screening and government history4 sections
  1. BB - Additional Informationyes/no + written

    Is the proposed position full-time year round?; Is the proposed position full-time seasonal?; Are there any employees on layoff and/or waiting for notice of recall?; Will this proposed subsidy result in displacement of existing employees?; Is there a labour stoppage or labour management dispute in progress?; Is there union concurrence with this proposed subsidy (if applicable)?; Is there a reasonable opportunity that the proposed employee(s) be retained as part of the applicant's regular workforce after the subsidy ends?

  2. CC - Legal Signing Officerstable
  3. DD - Previous Experience with Governmentwritten answer

    Please describe past agreements with the Government of Prince Edward Island and/or Federal Government (if applicable).

  4. EE - Amounts Owing to Government of Prince Edward Islandyes/no + written
Job and business detail4 sections
  1. FF - Job Description & Activities (position table)table
  2. F.1-2F.1-2 - Job Title and Detailed Job Descriptionwritten answer
  3. F.3F.3 - Description of Your Business (Company Profile)written answer
  4. F.4F.4 - Location of Activityshort answer
Training and sustainability2 sections
  1. F.5F.5 - Detailed Training Planwritten answer
  2. 12Sustainability Plan (supporting document)written answer
Budget1 section
  1. GG - Budgettable
Declaration and signatures2 sections
  1. JJ - Declarationcheckbox
  2. KK - Organization Signaturesshort answer

SkillsPEI states no length limits for these answers.

11 more prompts, in the funder’s words

Judged against4 questions · 5 criteria

  1. 1

    Will this job last after the subsidy?

    Show them Show how the wage is paid once the subsidy ends and why this hire becomes part of your regular workforce.◦

    In the funder’s words · 2
    • Employ PEI is an employment program developed to help employers create long term employment opportunities for job seekers.
    • Sustainability plan to maintain the new employee following the subsidy period.
  2. 2

    Is this a real training position?

    What to show, and the funder’s 2 criteria behind it in Premium

  3. 3

    Do the wage and budget add up?

    What to show them in Premium

  4. 4

    Does your organization and hire qualify?

    What to show, and the funder’s 1 criterion behind it in Premium

3 questions the reviewer answers about you, in Premium.

Where applicants failin SkillsPEI’s words

“Please note, the information requested below is required prior to the assessment of your application.”
“If the information provided in this Application is false or misleading, the Applicant may be required to repay some or all of the funding that may be approved by the Department under the Program”
“Any amounts payable to the Applicant under the Program may be set-off against any debts owed to the Government of PEI, which are in default.”

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3 more criteria · 11 more prompts

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Do you pass?7 checks

Each one can rule you out. Tick the ones you meet.

Your organisation

  • Registered business, organization, municipality or council

    Registered private sector businesses; Organizations; Municipalities; Band/tribal councils.

The project

  • Full-time job with on-the-job training

    An employer receives a temporary wage subsidy to provide on-the-job training for a new full-time employee.

  • Wage within occupation's wage range

    The wage rate paid to the participant must be within the wage range for the targeted occupation.

  • Wait for approval before hiring

    To be eligible for funding, you must wait for this approval before your new employee begins working.

The trainee

  • New hire unemployed and seeking full-time work

    Unemployed and looking for full-time work;

  • Employee authorized to work in Canada

    Legally authorized to work in Canada (Canadian citizen or permanent resident);

  • New hire lacks relevant work experience

    If you are hiring a new employee who lacks the work experience necessary for the position, we can subsidize up to 50% of the wages to a maximum of 20 weeks.

Documents to attach6

Ticks are kept on this device.

The money

Wage subsidyUp to 50%, $12.50/hour

SkillsPEI can subsidize up to 50% of the wages by making a maximum contribution of $12.50 per hour for the new employee's wages during the training period.

Maximum subsidy weeksUp to 50% for 20 weeks

If you are hiring a new employee who lacks the work experience necessary for the position, we can subsidize up to 50% of the wages to a maximum of 20 weeks.

CPP and EI costsEmployer covers CPP and EI

The Employer is responsible to cover the mandatory employment related costs including CPP, and EI.

Your shareEmployer pays the remaining wage share

If you are hiring a new employee who lacks the work experience necessary for the position, we can subsidize up to 50% of the wages to a maximum of 20 weeks.

Costs before approvalApproval needed before employee starts work

To be eligible for funding, you must wait for this approval before your new employee begins working.

What it pays for · 1
  • SkillsPEI can subsidize up to 50% of the wages by making a maximum contribution of $12.50 per hour for the new employee's wages during the training period.
What it does not pay for · 1
  • The Employer is responsible to cover the mandatory employment related costs including CPP, and EI.

From application to money

  1. Submit the applicationSubmit by email or drop-off
  2. Officer contacts youOfficer contacts within a few days
  3. Sign the agreementSign agreement before work starts
  4. Employee starts workEmployee starts after approval
  5. Claims and reportingSigning officers sign claims
In the funder’s words · 5
Submit the application
Submit the completed application and supporting documentation by email to [email protected] or drop-off at a SkillsPEI office.
Officer contacts you
A Program Officer will contact you within a few days to discuss your application.
Sign the agreement
The proposed project(s) will not commence until an agreement has been signed with the Government of Prince Edward Island and an agreement start date has been established.
Employee starts work
Once you receive confirmation that your application has been approved for the Employ PEI program, your new employee can start work.
Claims and reporting
Signing officers sign any payment claim form or other report submitted to SkillsPEI.

Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.

What's in this Playbook

Everything you need to win Employ PEI (Wage Subsidy)

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Complete the Employ PEI Application for Employers form

Required Documents 9

✓ Employ PEI employer application form
✓ Job description for subsidized position

Eligible Expenses 2

Ineligible Expenses 7

Intake Periods

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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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

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How Employ PEI (Wage Subsidy) Compares

Side-by-side with similar programs

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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...
Atlantic Canada Opportunities Agency ... Up to 50% of capital costs Moderate Reimbursement Ongoing
Business Development Program (BDP) - ... Varies (Repayable Contribution) Moderate Reimbursement Ongoing
PEI Small Business Investment Grant Up to $3,750 Easy Reimbursement March 31, 2027 (annual...

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Frequently Asked Questions

Quick answers to the questions founders most often ask about Employ PEI (Wage Subsidy)

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Can I apply if I already hired someone?
No — applications must be approved and a funding agreement signed, with an agreed start date, before the employee starts work. Submit before the hire date to avoid rejection. Funding is only available for new hires meeting all eligibility criteria.
What's the realistic subsidy amount per hire?
Typically $3,000-$5,000 (20 weeks at $12.50/hr, 50% subsidy). Maximum $5,000 per employee. Does not cover full wages — you pay 50% of wages during the subsidy period.
Do I need to match the subsidy amount?
Yes — you must pay 50% of wages during the subsidy period. For example, if employee earns $25/hr, you pay $12.50/hr and get $12.50/hr subsidy.
Can I stack this with other grants?
Yes — combine with Canada Summer Jobs (for different employees), ACOA BDP, or Innovation PEI programs. Must use for different hires or different business costs.
Why do applications get rejected?
Common reasons: employee not unemployed, still in school, replacing existing staff, or no retention plan. Submit before hire date to avoid common pitfalls.

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