Canada offers a 75% wage subsidy amid the pandemic

Canadian Prime Minister Justin Trudeau said Monday large businesses are eligible for a 75% wage subsidy for their employees amid the coronavirus pandemic.

The moves means Canada is effectively nationalizing many private payrolls.

Trudeau said businesses that have seen a 30% decrease in revenue are eligible.

"For people to get through this tough time and for the economy to rebound, people have to keep their jobs," Trudeau said.

The prime minister said the government will cover up to 75% of salary on the first 58,700 Canadian dollars (US$4,488) that is earned. That means up to $847 Canadian (US$598) a week.

Trudeau previously announced the 75% wage subsidy for small businesses but announced Monday the number of employees a company has will not determine whether or not it gets support. He also said non-profits and charities are also eligible.

The Canadian government reversed course after initially only offering a 10% wage subsidy earlier this month. The new offer is backdated to March 15.

"This subsidy will make a real difference in your lives and help everyone affected bridge to better times," Trudeau said.

Trudeau warned of severe penalties if companies try abuse the subsidy program.