Hiring & wage subsidy grants in Ontario — see which you qualify for

Canada Summer Jobs is the most widely used youth wage subsidy in Ontario. Not-for-profit organizations and public-sector employers receive up to 100% of the provincial or territorial minimum wage for each hired youth. Private-sector small businesses with fewer than 50 full-time employees receive 50% of minimum wage. Jobs must be full-time (30–40 hours/week), temporary (4–16 weeks), and must provide meaningful work experience. Applications open annually in December and close in January for positions running the following summer. Toronto, Ottawa, Hamilton, and London employers receive the Ontario minimum wage rate ($17.20/hr in 2026).

Student Work Placement Program funds employers who create co-op and work-integrated learning (WIL) placements for Canadian post-secondary students. The standard payment is $5,000 per placement, rising to $7,000 if the student is from an underrepresented group (Indigenous students, persons with disabilities, women in STEM, visible minorities, first-year students). Delivered through sector-specific partners including Magnet, SWPP-BC, and TECHNATION in Ontario. Toronto, Waterloo, and Ottawa employers hire through all three delivery channels. Students must be enrolled in a recognized Canadian post-secondary institution and the placement must be tied to their program of study.

Apprenticeship Service Employer Grant pays $5,000 per first-year apprentice hired in a Red Seal trade, rising to $10,000 when the apprentice belongs to an underrepresented group. Employers can claim up to $20,000 if hiring multiple apprentices in a single intake. Red Seal trades in Ontario include electricians, plumbers, carpenters, welders, sheet metal workers, and HVAC technicians. The program targets small and medium-sized employers — businesses with more than 500 employees are ineligible. Applications are submitted through the employer's ESDC Service Canada account. Ontario construction sectors in the Greater Toronto Area, Hamilton, and London have historically captured the largest share of provincial uptake.

Apprenticeship Job Creation Tax Credit is a non-refundable federal tax credit of 10% of eligible wages paid to first- and second-year Red Seal apprentices, up to a maximum of $2,000 per apprentice per tax year. Eligible wages are capped at $20,000 per apprentice per year, so the credit reaches its maximum when the apprentice earns $20,000 or more. The credit is non-refundable, meaning it reduces taxes owed but does not result in a cash payment if the employer has no tax liability. Stack AJCTC with ASEG — an employer hiring a new Red Seal apprentice can receive the $5,000–$10,000 ASEG cash grant in year one and the $2,000 AJCTC credit for years one and two simultaneously.

Mitacs Accelerate funds structured research internships between Canadian companies and universities. Each $15,000 unit is split: Mitacs contributes $7,500 and the company contributes $7,500 in matching cash, giving the intern a $15,000 stipend. Internships are a minimum of 4 months at 4.5 days/week. Multiple units can be stacked for longer or larger projects — a 12-month placement would be 3 units ($22,500 company cash, $22,500 Mitacs, $45,000 total intern stipend). Ontario universities actively participating include University of Toronto, University of Waterloo, McMaster, Western, Queen's, York, Ryerson (Toronto Metropolitan), Carleton, and the University of Ottawa. Companies in the Greater Toronto Innovation Corridor, the Waterloo tech cluster, and Ottawa's high-tech corridor are the most active Ontario Mitacs users.

Worker Retention Grant supplements the federal Work-Sharing program, which lets employers reduce employee hours (to a minimum of 10%) instead of laying staff off, with EI benefits topping up reduced income. The retention grant tops income replacement from the standard EI 55% to approximately 70% of insurable earnings per worker per week, making it more financially viable for employees to accept reduced hours. Employers in Ontario manufacturing sectors in Windsor, Oshawa, Cambridge, and Brantford, and forestry employers in Northwestern Ontario, have historically used Work-Sharing most frequently. The training subsidy component lets employers use reduced-hours time for skills development paid through the grant. Active Work-Sharing agreement with ESDC is a hard prerequisite.

Youth Employment and Skills Program addresses employment barriers for vulnerable youth 15–30. Employers do not apply directly to ESDC — instead, ESDC funds non-profit organizations and community groups who then place youth with employer partners. Toronto organizations such as the Centre for Immigrant and Community Services, the Urban Alliance on Race Relations, and multiple settlement agencies hold YESP delivery agreements. Similarly, Ottawa-Carleton's community employment organizations, Hamilton's workforce development groups, and the Peel Region's newcomer support sector are active YESP channels. Employers benefit from pre-screened, supported candidates; ESDC-funded organizations handle wages for the placement period. Call your closest ESDC Service Canada centre to identify the delivery org nearest you.

FedNor's Youth Internship program is the most generous per-hire hiring subsidy available to Northern Ontario employers, covering up to 90% of a graduate's salary and benefits. The program targets post-secondary graduates under 30 who have not yet held full-time work in their field — making it ideal for employers in Sudbury, Thunder Bay, Sault Ste. Marie, North Bay, Timmins, Kenora, and Kapuskasing looking to attract and retain skilled graduates who might otherwise relocate south. Internships run 6 to 18 months. The additional $5,000 per intern for equipment and training is unique — most wage-subsidy programs do not cover ancillary costs. FedNor Community Futures Development Corporations (CFDCs) across Northern Ontario region process applications and provide wrap-around support.