Hiring and training skilled workers is expensive, especially for small and mid-sized employers. Newfoundland and Labrador’s Apprenticeship Wage Subsidy helps offset hiring costs. It covers a large share of an apprentice’s wages while they gain on-the-job experience. The program is open now and helps employers build long-term skilled labour capacity in the province.
The Apprenticeship Wage Subsidy is a provincial funding program delivered by the Department of Advanced Education, Skills and Labour. It provides employers with a wage subsidy of up to 75%, capped at $14 per hour, for hiring and training registered apprentices in eligible skilled trades.
Key program facts:
Important: If employers do not follow the program’s terms and conditions (for example, if they do not submit proper payroll records or if the apprentice is not properly registered), the province may require repayment of funding already provided. This is sometimes called a clawback or recapture of funds, not a repayable loan. Always review your obligations to avoid having to return the subsidy.
Eligibility is assessed on a case-by-case basis, but the program generally supports:
The province also checks that the job placement provides meaningful skills development, not just short-term labour.
Funding is based on the apprentice’s wages:
For example, if you pay an apprentice $18/hour, the program may reimburse up to $14/hour for approved hours. If the wage is lower, the subsidy is 75% of the actual wage.
The duration of the subsidy depends on the approved work and training period and is confirmed during the application process.
The application process is employer-driven and usually follows these steps:
Confirm apprentice registration
Make sure your apprentice is officially registered in a recognized apprenticeship program in Newfoundland and Labrador.
Prepare employment details
Gather wage rates, job duties, and proof that the work helps the apprentice build skills in their trade.
Submit an application to the province
Apply through the Department of Advanced Education, Skills and Labour. Approval is usually needed before or early in the employment period.
Track wages and hours worked
Keep accurate payroll records to support your subsidy claims.
Receive reimbursement
Payments are issued after you pay wages and meet reporting requirements.
Tools like GrantHub’s eligibility matcher can help you filter wage subsidy programs by province and workforce needs in seconds, especially if you employ multiple apprentices.
Sometimes, the Apprenticeship Wage Subsidy may be stackable with federal incentives, such as apprenticeship-related tax credits. Stacking rules can vary, and total government help usually cannot go over a set percentage of your costs.
Check stacking rules before you apply for more than one program.
For more context, see:
Applying after the apprentice has already worked too long
Many wage subsidies need early approval. Late applications risk rejection.
Using unregistered apprentices
Only registered apprentices are eligible. Informal trainees do not qualify.
Incomplete payroll records
Missing or unclear wage documents can delay or reduce reimbursement.
Ignoring repayment (clawback) conditions
If program terms are not met, funding may have to be returned. Review your obligations carefully.
Q: Who is eligible for the Apprenticeship Wage Subsidy in Newfoundland and Labrador?
Employers who hire registered apprentices in recognized skilled trades are generally eligible. The apprentice must be formally registered and gaining relevant work experience.
Q: How much funding does the program provide?
The subsidy covers up to 75% of wages, capped at $14 per hour, depending on approved hours and wage rates.
Q: Do I have to pay back the Apprenticeship Wage Subsidy?
You do not have to repay the subsidy if you follow all program terms. However, if you do not meet requirements (such as proper apprentice registration or reporting), the province may ask for the money back (a “clawback” or “recapture”).
Q: How long does the wage subsidy last?
The duration depends on the approved training or work period and is confirmed during application approval.
Q: Is the subsidy considered taxable income?
Wage subsidies are usually treated as business income for employers. Check with your accountant for proper reporting.
If you employ or plan to hire apprentices, the Apprenticeship Wage Subsidy can help lower your payroll costs and build skilled talent in-house. Visit GrantHub to see which wage subsidy programs you qualify for and find out how provincial and federal programs can work together for your workforce plans.
You may also find these guides helpful:
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