How to Hire Indigenous Talent Using Wage Subsidies in Canada

Hiring Indigenous talent is a priority for many Canadian employers, but covering wages and training costs can be a challenge. Wage subsidy programs offer support by paying part—or sometimes all—of an employee’s wages while they gain experience. In Atlantic Canada, the JEDI — Indigenous Internship Program can fund Indigenous hires for up to two years.

How Indigenous Wage Subsidies Work for Employers

Wage subsidies are funding programs that reimburse a portion of wages when you hire an eligible Indigenous employee. Most programs support new graduates, youth, or underemployed workers. You must provide real work experience and offer proper supervision.

Across Canada, Indigenous wage subsidy programs usually cover:

50% to 100% of wages, depending on the program
Internship or term roles, often 6 months to 2 years
Full-time or part-time positions, as long as minimum wage rules are met

These programs do not replace your regular HR steps. You still recruit, onboard, and manage the employee. The subsidy reduces your payroll costs while you build long-term talent.

You can use tools such as GrantHub’s eligibility matcher to find Indigenous wage subsidy programs suited to your province and role type.

Eligibility Requirements

Each wage subsidy program has its own rules, but some requirements are common:

Employee requirements

Must self-identify as First Nations, Inuit, or Métis
Must have the right to work in Canada
Usually must be unemployed or underemployed
Some programs require a recent post-secondary degree or diploma

Employer requirements

Must be a Canadian business, non-profit, or public sector employer
Must provide a role that gives real skill development
Must follow all provincial employment standards
May need to offer training, mentoring, or supervision

For example, the JEDI — Indigenous Internship Program in New Brunswick is for recent Indigenous post-secondary graduates who finished school in the last three years and are not fully employed.

How to Apply

Applying for wage subsidies usually follows these steps:

Check eligibility
Review the program guidelines to make sure both your business and the candidate qualify.
Prepare your job description
Write a clear role that matches the program’s focus on skill development.
Find your candidate
You can recruit on your own, or ask for help from Indigenous organizations or job boards.
Submit your application
Apply before hiring. Most programs do not pay for wages before approval.
Wait for approval
Approval can take 2 to 8 weeks. Make sure you submit all required documents.
Hire and onboard
Once approved, you can officially hire and start the employee.
Report and claim reimbursement
Send payroll records and progress reports as required to get your wage subsidy.

Platforms like GrantHub can remind you of deadlines and required documents for different wage subsidy programs.

JEDI — Indigenous Internship Program (New Brunswick)

The JEDI — Indigenous Internship Program (IIP) is one of the strongest Indigenous hiring programs in Canada for New Brunswick employers.

What the program offers

Pays up to 100% of eligible wage costs
Internship can last up to 2 years
Designed for recent Indigenous post-secondary graduates

Who can be hired The Indigenous intern must:

Self‑identify as First Nations, Inuit, or Métis
Hold a post-secondary degree or diploma
Have graduated within the last 3 years
Be unemployed or underemployed
Be legally entitled to work in Canada

Employer expectations

Provide a role related to the intern’s education
Offer on‑the‑job training, mentoring, and supervision
Follow provincial employment standards

This program is a good fit for professional, technical, and office roles where you want to keep the employee long-term.

Other Indigenous Wage Subsidy Programs Employers Should Know

Depending on your location and industry, these programs may also help you hire Indigenous talent:

Housing Internship Initiative for First Nations and Inuit Youth (Federal)

Wage subsidy pays wages in whole or in part
Internship must be at least 8 weeks
Employer must pay at least minimum wage
Open to Indigenous and non‑Indigenous employers

Indigenous Wage Subsidy Initiative (Nova Scotia)

Covers up to 80% of wages
Maximum $15,000 per employee
Up to 8 months of work experience
Focus on clean economy and technology roles

Indigenous Workforce Development Program – Private (Northern Ontario)

Supports internships for Indigenous job seekers
Employers must be in Northern Ontario
Focus on workforce entry or career transition roles

Future Wabanaki (New Brunswick)

Connects employers with Indigenous and other students
Funding amounts vary by placement
Emphasis on meaningful, skill‑building work experiences

Common Mistakes to Avoid

Hiring before approval
Most wage subsidies are not retroactive. If you hire before approval, you may not get funding for those wages.
Role does not fit program focus
Programs expect skill-building roles. General labour jobs may not qualify.
Stacking funding incorrectly
Using two programs to pay the same wages can cause funding to be taken back. Always report other funding.
Missing reporting deadlines
Wage subsidies often require payroll records and progress reports. Late reports can delay your reimbursement.

Frequently Asked Questions

Q: Can I hire an Indigenous employee I already know?
Yes, as long as the employee meets eligibility rules and you apply before their start date. Most programs do not allow funding for people already on your payroll.

Q: Do I have to keep the employee after the subsidy ends?
No, but programs encourage you to keep good employees. Many employers use subsidies as a trial period for permanent roles.

Q: Are wage subsidies taxable income for my business?
Usually, wage subsidies are business income and must be reported. Ask your accountant how this applies to you.

Q: Can small businesses apply, or only large employers?
Small and medium‑sized businesses can apply for most Indigenous wage subsidies, including JEDI and Future Wabanaki.

Q: How long does approval usually take?
It depends on the program. Most take 2 to 8 weeks, depending on how busy they are and if your application is complete.

Next Steps

Indigenous wage subsidies can support your hiring goals and advance reconciliation. The best program for you depends on your province, the role, and your hiring timeline.

GrantHub tracks hundreds of wage subsidy and employment grant programs across Canada—including Indigenous-specific funding—so you can compare your options and see which programs fit your business needs.

See also:

How to stack grants and loans without violating funding rules
What Business Expenses Are Eligible Across Canadian Grants and Loans?
Futurpreneur and BDC Loans for Indigenous Startups: Terms and What to Expect

How to Hire Indigenous Talent Using Wage Subsidies in Canada