PEI Labour Rebate (PLR)

Insider Tip

The rebate covers up to one year of eligible labour expenses per project regardless of how long the project runs — payments can be spread over up to 10 years. This means a company could secure a rebate for Year 1 salaries now and deploy the payments strategically. Key trap: business owners and their family members cannot be the rebated employees. Confirm with Innovation PEI whether positions receiving any other government labour funding (e.g., Canada Job Grant, Workforce Development Agreement programs) are still eligible under PLR.

Rejection Pitfalls 8

• Positions not incremental (replacing existing staff rather than net-new headcount)
• Gross salary below $35,000 per year
• Less than 1,850 hours worked annually per position

Success Profile

Growing PEI ICT, bioscience, advanced manufacturing, or clean-tech company adding at least one new full-time position for a PEI resident at $35,000+ salary in an export-oriented role. Strongest fit for companies with an established export track record adding headcount to scale product delivery or R&D capacity.

Evaluation Criteria

Applications assessed on: long-term business viability, degree of innovation, management qualifications and track record, market potential and export evidence, level of other government support, employment creation impact, and availability of program funds. First-come, first-served within budget. A letter of offer is issued upon approval, constituting the funding agreement.

Application Steps

Required Documents 8

Eligible Expenses 2

• Gross salaries and wages for incremental full-time positions (minimum $35,000/year, minimum 1,850 hours/year)
• Positions filled by PEI residents in export-oriented strategic sector roles

Ineligible Expenses 5

• Salaries for business owners, partners, or immediate family members
• Part-time positions (under 1,850 hours per year)
• Positions paying under $35,000 gross annually
• Positions receiving labour funding from other government sources
• Employer payroll taxes and benefits (only gross wages are eligible, not total employment costs)

Intake Periods

Continuous intake, first-come, first-served. No annual intake cycles. Apply before making hiring commitments.

Deadline Notes

First-come, first-served with no published deadline. Applications reviewed on a continuous basis. Apply before making hiring commitments — costs incurred before approval are ineligible.

Open Application Portal →

Ineligible Organizations

• Businesses not located and actively operating in PEI
• Businesses not primarily producing goods or services for export
• Businesses outside qualifying strategic sectors (retail, food service, consumer services, etc.)
• Businesses in default with PEI Central Default Registry or Innovation PEI

Compatible Programs

Clawback Risk

Medium Risk

If positions are terminated, reduced below 1,850 hours, or fall below the $35,000 salary threshold after the rebate begins, future payments may be suspended or terminated. The letter of offer includes specific terms for maintaining position eligibility. Material changes to business operations or ownership may also affect the rebate.