wage subsidy
The PICS Wage Subsidy Program (PWS) provides work placement assistance to unemployed individuals who face employment barriers in entering the full-time workforce. The wage subsidy provides an incentive to employers to hire eligible individuals who are motivated and ready to work. Partnership building is ongoing with local businesses to recruit employers for the program. We strive to create the best match between clients and employers who meet our clients’ needs and qualifications.
The duration of the PWS sub-agreement varies from client to client, depending on the type of work experience required. Normally a PWS placement does not exceed 26 weeks. The amount of the subsidy also varies, however, it may not exceed 60% of the wage paid by the employer to the employee.
For a list of available positions through the Wage Subsidy program, click here.
Information for Employers
A wage subsidy acts as an incentive for employers to hire ready-to-work individual/s in employment of their choice, by subsidizing, for a negotiated period of time, a percentage of the wages of an individual employed under the Wage Subsidy Program. The work experience should lead to long-term employment.
Employers may qualify for a Wage Subsidy:
- if your business is located anywhere in the Lower Mainland
- if you have a valid and current business license
- if you have been in business for at least two years
- if you have a company Revenue Canada Payroll Number
- if you have a WCB account in good standing
- if you are willing to provide a minimum of 30 hours of work experience per week for a position leading to long-term employment
- if you do not displace an existing employee in order to hire one on a Wage Subsidy
- if you are not related to the individual you wish to employ.
Eligibility criteria for a program participant
A program participant is one who is actively seeking to enter the full time work force. Wage Subsidy program participants’ come from all educational backgrounds. Participants’ educational backgrounds range from little or no formal education to vocational training or graduate degrees.
To qualify for the wage subsidy program, a program participant:
- must be currently unemployed and receiving Employment Insurance (E.I.) benefits, OR have received EI benefits in the past 3 years, OR have received Maternity/Parental benefits in the past 5 years (***Please note if a person is currently receiving Maternity/Parental benefits SHE/HE IS NOT ELIGIBLE FOR PWS)
- needs clearly defined long-term employment/career objective/s; should be ready and available for work; is seeking full-time work (minimum of 30 hours per week) and long-term employment; OR is underemployed and working less than 20 hours per week and seeking full-time employment
- is case managed and has a Return-to-Work Action Plan (RTWAP) which identifies work experience as a required intervention
- must reside in the Lower Mainland, preferably in South-East Vancouver, Burnaby, New Westminster or other parts of Vancouver and Richmond.
Frequently asked Q&A
What is the amount and duration of a wage subsidy?
The amount of the subsidy varies; however, it cannot exceed 60% of the wage paid by the employer to the employee. The duration of the PWS agreements also varies on an individual case-by-case basis and is dependent on the type of work experience required. Normally, the PWS placement does not exceed 26 weeks.How much do I have to pay the employee?
Employers are required to pay the employee at least the minimum wage. Under all circumstances, employers are expected to pay a reasonable market rate for the position.How does the “wage subsidy” work?
Employers will pay the new employee in the same manner as they would the rest of their employees. PICS Wage Subsidy Program will provide you with a Payment Claim Form that must be mailed or faxed to the PICS office at the end of each month. You pay the employee first and then we pay you. It’s that simple!
I am interested in hiring through the Wage Subsidy Program. What do I do next?
Simply call us at 604.324.7733 before the proposed start date. We will ask you to submit a Work Experience Plan based on the job description of the position you are hiring for. It is important to note that an eligible employee MAY NOT begin working before approval has been obtained for the Subsidy.
are there any special hiring procedures involved?
No, the hiring process for wage subsidy individuals is the same as any other employee you normally hire. The only difference is that you must negotiate the wage subsidy contract with PWS BEFORE the employee's starts working. All employers need to do due-diligence in their hiring practices, to ensure proper resume reviews, interviews with potential candidates, reference checks, etc. are conducted.
What if I want to receive a wage subsidy for an individual who is not registered with the PWS Program?
If you find a new employee you would like to hire and they meet the eligibility criteria for the wage subsidy, but is not yet registered then give call us and we can get them registered so you can receive financial assistance to cover the cost of training a new employee. The new employee MUST NOT begin working until they have registered with the PICS Wage Subsidy program.
What paperwork is involved?
Paperwork for employers is kept to a minimum and is a simple process. A one-page Employer Application form must be completed and signed by the employer for initial registration with PWS. Once the employer has offered the position to the EI-eligible individual, the employer and PWS Job Placement Officer negotiate a wage subsidy agreement which outlines the job description, wages, and amount and duration of the actual wage subsidy itself. Once the employee starts work, the employer is required to submit, on a monthly basis, a simple payment claim form and copies of the employee's statement of earnings for the claim period to show gross pay, deductions, hours of work paid for, etc.
What if I find the employee is not suitable for the position after signing the agreement?
If at any time you are dissatisfied with the employee’s performance and the situation has not improved after bringing it to the employee’s attention, involve, as required, the Job Placement Officer (JPO) in the mediation process. PICS will work with you and the said employee to develop a satisfying solution together. Please notify us prior to terminating the employment.
How long does the pre-approval process take?
The entire process usually takes no more than a couple of working days from your initial contact with PICS. However, the length of the pre-approval process will depend on a number of factors, such as your timely submission of requested wage subsidy documents and confirmation of your eligibility for the Wage Subsidy Program.
