Indigenous workforce, internship, and wage subsidy programs in Canada

By GrantHub Research Team · · Lire en français

Indigenous workforce, internship, and wage subsidy programs in Canada

Many Canadian employers want to hire Indigenous talent. They often face challenges such as training costs, wage risk, or finding the right programs. Governments across Canada fund Indigenous workforce, internship, and wage subsidy programs. These programs help reduce barriers and support long-term employment for First Nations, Métis, and Inuit peoples. Depending on the program and region, they can cover 50% to 90% of wages, plus mandatory employer costs.

Below is a practical breakdown of the main public programs, who they are for, and how employers can use them.


Core Indigenous workforce funding programs for employers

Indigenous Workforce Development Program (Northern Ontario)

The Indigenous Workforce Development Program is delivered by the Northern Ontario Heritage Fund Corporation (NOHFC). It supports paid internships that help Indigenous participants gain work experience while reducing employer payroll costs.

Who can apply

  • Businesses, municipalities, Indigenous communities, and not-for-profits
  • Must be located in Northern Ontario
  • Must have operated for at least one year
  • Must have at least one full-time employee

Eligible interns

  • First Nations, Métis, or Inuit individuals
  • At least 18 years old
  • New entrants to the workforce, career changers, or underemployed
  • Cannot have previously participated in an NOHFC-funded internship

Funding amounts

  • Businesses:
    • Up to 75% of an Indigenous intern’s wages, including the employer portion of MERCs
    • Maximum $52,500 per year
  • Municipalities, Indigenous communities, and not-for-profits:
    • Up to 90% of wages and MERCs
    • Maximum $35,000 per year

Employers can usually support up to two internship positions at one time. Interns must receive direct, on-site supervision.


The First Nations and Inuit Skills Link Program is a federal program delivered by Indigenous Services Canada. Unlike a traditional wage subsidy, it funds projects that help Indigenous youth gain employability skills and work experience.

Who can apply

  • First Nations and Inuit communities or governments
  • Indigenous organizations and not-for-profits
  • Private sector employers (as project partners)

Eligible participants

  • First Nations youth living on reserve or in recognized communities
  • Inuit youth living in Canada outside Inuit Nunangat
  • Ages 15 to 30

Funding

  • Up to 100% of eligible project costs
  • Supports training, mentoring, job readiness, and work experience

This program is best for employers willing to partner with Indigenous organizations on structured workforce development projects.


Innovator Skills Initiative (British Columbia)

While not Indigenous-specific, the Innovator Skills Initiative from Innovate BC includes Indigenous peoples as an under-represented group. Employers often use it when hiring Indigenous candidates into tech roles.

Who can apply

  • BC-based tech companies hiring for tech or business roles
  • Non-tech organizations hiring for tech roles

Funding

  • Up to $10,000 per new hire
  • Covers wages and mandatory payroll costs
  • Multiple grants per employer allowed

Funding is first come, first served. It can be combined with other wage subsidies up to 100% of salary costs, as long as the funding is not duplicated.


Ontario People & Talent Program — Indigenous Workforce Stream

This stream complements the NOHFC internship programs and targets Indigenous workforce participation in Northern Ontario.

Key details

  • Conditional contribution funding
  • Same wage coverage levels as the Indigenous Workforce Development Program
  • Supports salary and employer-paid MERCs

Check which stream applies before you apply. Public and private employers are assessed differently.


How employers typically use Indigenous wage subsidies

Most successful employers use Indigenous workforce funding to:

  • Offset first-year wage risk for new hires
  • Create entry-level or career-transition roles
  • Provide structured mentorship and supervision
  • Build long-term Indigenous recruitment pipelines

Tools like GrantHub’s eligibility matcher help you filter programs by province, Indigenous focus, and hiring type in seconds.


Common mistakes to avoid

  1. Hiring before approval
    Most programs will not reimburse wages paid before funding approval. Always wait for written confirmation.

  2. Missing supervision requirements
    Internship programs require direct supervision. Failing to document this can lead to funding clawbacks.

  3. Hiring ineligible candidates
    Self-identification and eligibility must match program rules exactly. Assumptions can void an application.

  4. Overlapping funding incorrectly
    Stacking is allowed in some cases, but double-dipping on the same wage costs is not.

(See also: Common Mistakes Employers Make When Applying for Wage Subsidy Grants)


Frequently Asked Questions

Q: Can Indigenous wage subsidy programs be stacked with other grants?
Yes, some programs allow stacking up to 100% of wage costs, as long as funding does not come from the same source or cover the same expenses.

Q: Do interns need to be students?
No. Most Indigenous workforce programs focus on career entry or transition, not student status.

Q: Are small businesses eligible?
Yes. Many programs require only one full-time employee and one year of operations.

Q: Can family members be hired?
Usually no. Immediate family members of owners or directors are typically ineligible, with limited exceptions in small Northern communities.

Q: Are these programs available outside Northern Ontario?
Yes. Federal programs and provincial programs in BC and other regions support Indigenous workforce development nationwide.


Next steps

Indigenous workforce, internship, and wage subsidy programs can significantly reduce hiring costs and support meaningful employment outcomes. The challenge is finding the right program for your location, business type, and role.

GrantHub tracks hundreds of active workforce and wage subsidy programs across Canada — including Indigenous-specific funding — so you can quickly see which options fit your business profile.

See also:

  • Federal vs Provincial Wage Subsidy Programs in Canada: Key Differences
  • Training and Workforce Development Grants in Canada: Eligibility Guide

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