If you want to hire a summer student in Prince Edward Island, the Jobs for Youth Program wage subsidy can help cover much of your payroll costs. Many employers don’t realize that the subsidy is always based on the provincial minimum wage. It does not matter if you pay your student more per hour. Knowing this formula helps you set your budget and avoid surprises when you get reimbursed.
The Jobs for Youth Program is run by the Government of Prince Edward Island. It helps employers who hire students aged 15–29 for summer jobs, usually for 8 to 12 weeks and up to 40 hours per week per student.
There are two main employer types:
Non-profit and public sector employers
Private sector employers
The subsidy uses the PEI minimum wage rate, not the wage you pay. For 2024, PEI’s minimum wage is:
If you pay more than minimum wage, you pay the extra amount yourself.
All subsidies include 4% vacation pay. This is added on top of the wage subsidy, not subtracted from it.
Example 1: Private Sector Employer
Calculation:
Weekly subsidy: $320.32
If you pay the student $17.00/hour, you pay the difference above the subsidized amount.
Example 2: Non-Profit Employer
Calculation:
Weekly subsidy: $560.56
Budgeting based on your own wage rate
The subsidy is always based on minimum wage, not what you choose to pay.
Forgetting the 40-hour weekly cap
Hours above 40 per week are not eligible for subsidy.
Missing minimum wage changes
Make sure you use the current minimum wage for each pay period.
Assuming private businesses get full coverage
Private sector employers only get 50% of minimum wage, not 100%.
If you want to compare wage subsidy programs for students, GrantHub’s eligibility matcher can filter by province and employer type in seconds.
Q: Is the Jobs for Youth Program wage subsidy taxable income?
Yes. The subsidy is considered government assistance and must be reported as business income. Your accountant can help you with the details.
Q: Can I claim overtime hours under the Jobs for Youth Program?
No. The subsidy only covers up to 40 hours per week per student. Overtime is not included.
Q: Does vacation pay count toward the hourly cap?
No. The 4% vacation pay is added to the wage subsidy and does not reduce the number of eligible hours.
Q: What if minimum wage increases during the summer?
If the minimum wage changes, use the new rate for hours worked after the change takes effect.
Q: Can I hire more than one student?
Yes, if you get approval. Each student is calculated separately using the same rules.
GrantHub tracks hundreds of grants and wage subsidies across Canada to help you find the right fit for your business.
Now that you know how the Jobs for Youth Program wage subsidy is calculated, you can plan your summer hiring budget with confidence. If you want to compare other student or wage subsidy programs, see Federal vs Provincial Wage Subsidy Programs in Canada: Key Differences or How to fund summer student hires and youth employment programs in Canada. GrantHub helps you compare your options so you can choose what works best for your business in PEI.
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