Hiring a co‑op student can ease short-term staffing pressure and build a future talent pipeline. In Nova Scotia, the Cooperative Education Incentive helps offset the cost by reimbursing part of a student’s wages if you meet specific conditions. For many employers, this incentive can make the difference between postponing a hire and bringing in extra support during a busy period.
The Cooperative Education Incentive is a provincial hiring incentive offered by the Government of Nova Scotia through Labour and Advanced Education. It is designed to encourage employers to hire post‑secondary students enrolled in formal co‑operative education programs.
Here’s what you need to know before deciding if it fits your business.
For a typical 15‑week term at 35–40 hours per week, this can add up to several thousand dollars in wage support, depending on hours worked.
The program is open to a wide range of employer types in Nova Scotia, including:
To qualify, you must hire a student who is enrolled in a recognized co‑operative education program at a Nova Scotia university or college and place them in a role related to their field of study.
To be eligible for reimbursement, the co‑op placement must:
Shorter placements, part‑time roles, or internships that are not part of an approved co‑op program do not qualify.
The Cooperative Education Incentive is listed as repayable funding. In practice, this means the province may require repayment if you do not meet the program conditions, such as ending the placement early or failing to pay the required wage. When all conditions are met, employers typically receive the reimbursement as expected.
Tools like GrantHub’s eligibility matcher can help you quickly confirm whether your business and the student you plan to hire meet all current criteria before you apply.
This incentive works best for businesses that:
If your staffing needs are short-term, part-time, or outside a student’s field of study, other wage subsidy programs may be a better fit. See also: How to Use Wage Subsidy and Student Hiring Programs to Reduce Staffing Costs.
Hiring a student who is not in a co‑op program
Not all students qualify. The student must be enrolled in a formal co‑operative education program at a Nova Scotia institution.
Paying below the $18 per hour minimum
Even a small shortfall can make the entire placement ineligible for reimbursement.
Assuming the subsidy covers part‑time roles
Only full‑time work terms of 12–16 weeks qualify under this program.
Ending the placement early without approval
Early termination can trigger repayment of funds already received.
For more on avoidable errors, see Common Mistakes Employers Make When Applying for Wage Subsidy Grants.
Q: How much funding can I receive per student?
You can receive $8 per hour for each eligible co‑op student. The total depends on the length of the work term and weekly hours worked.
Q: Are non‑profits and municipalities eligible?
Yes. Non‑profits, charities, social enterprises, and municipalities are all eligible employer types under this program.
Q: Does the student need to study a specific subject?
The role must be related to the student’s program of study, but there is no restricted list of disciplines. Approval comes through the co‑op program at the student’s institution.
Q: Is the reimbursement considered taxable income?
Wage subsidies are generally treated as business income. You should confirm the tax treatment with your accountant based on your specific situation.
Q: Can I stack this with other wage subsidies?
Stacking is sometimes limited. Provincial programs often restrict double‑funding for the same wages, so check program terms carefully before applying.
Co‑op student hiring incentives in Nova Scotia can reduce wage costs while helping you test future talent. The key is confirming eligibility early and planning for the upfront payroll expense.
GrantHub tracks hundreds of active grant and wage subsidy programs across Canada — including student hiring incentives — so you can quickly see which options match your business profile and hiring plans.
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