NRC IRAP Funding to Hire Young Graduates: Eligibility and Wage Support Explained

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NRC IRAP Funding to Hire Young Graduates: Eligibility and Wage Support Explained

Hiring new graduates is a challenge for small and mid-sized businesses. You need fresh skills, but payroll costs can strain your budget. NRC IRAP funding to hire young graduates helps Canadian companies bring in early-career talent for innovation and technology projects while reducing wage expenses.

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) offers this wage support as part of the Youth Employment Program under the Youth Employment and Skills Strategy (YESS). The goal is to help innovative SMEs grow without risking their cash flow.


Overview: How NRC IRAP Funding Works

The NRC IRAP Youth Employment Program gives wage support to help your business hire a young graduate for eligible innovation-related activities. This support is non-repayable, meaning you do not have to pay it back.

What the funding covers

NRC IRAP shares the cost of the young graduate’s salary. Funding amounts depend on your project and business profile. Support applies directly to eligible salary and mandatory benefits, which lowers your payroll costs.

Eligible activities include:

  • Research and development (R&D)
  • Engineering or technical development
  • Multimedia or digital product development
  • Market analysis for new technology-based products
  • Business development connected to science and technology
  • Improving customer services using technology

The role must clearly support your company’s innovation goals. This program does not cover general hiring for non-technical or administrative roles.


Eligibility Requirements for Employers

To qualify for NRC IRAP funding to hire young graduates, your business must meet these criteria:

  • Be a for-profit small or medium-sized enterprise (SME) in Canada
  • Have 500 or fewer full-time equivalent employees
  • Work on or plan an innovation or technology-driven project
  • Be accepted as an NRC IRAP client

An NRC Industrial Technology Advisor (ITA) will review your project and confirm if the role fits IRAP’s objectives.


Who Qualifies as a Young Graduate?

The person you hire must also meet certain requirements.

A young graduate must:

  • Be 15 to 30 years old at the start of employment
  • Be a Canadian citizen, permanent resident, or protected person
  • Have completed post-secondary education (college, university, or equivalent)
  • Be hired into a new position, not an existing role
  • Work at least 30 hours per week

The placement must last at least 6 months and can extend up to 12 months, depending on your project and NRC IRAP approval.


Application Process: Steps to Apply

NRC IRAP funding is relationship-based and assessed case by case. There is no public online application form.

The process includes:

  1. Contact NRC IRAP to discuss your innovation project
  2. Work with an Industrial Technology Advisor to define the role and scope
  3. Confirm eligibility for your business and the young graduate
  4. Receive approval and funding terms before hiring

Approval must happen before the employee starts. Funding cannot be backdated.

GrantHub helps you identify hiring grants by province, industry, and employee type so you can prepare before reaching out to NRC IRAP.


Stacking NRC IRAP Youth Funding With Other Grants

You may combine NRC IRAP youth funding with provincial hiring incentives or tax credits, but there are limits.

You must:

  • Avoid reimbursing the same salary costs twice
  • Keep total government assistance within allowed limits
  • Disclose all funding sources to NRC IRAP

Stacking rules are checked during your funding assessment.

For more information, see:

  • How Student Work Placement Wage Subsidies Stack With Provincial Hiring Incentives
  • How to Use Wage Subsidy and Student Hiring Programs to Reduce Staffing Costs

Common Mistakes to Avoid

Hiring before approval
If the graduate starts work before NRC IRAP approves funding, the wages are not eligible.

Role is too operational
General admin, sales-only, or non-technical roles are usually rejected. The job must support innovation.

Graduate does not meet age or education rules
Missing even one requirement can disqualify the placement.

Assuming a fixed funding amount
There is no standard dollar value. Funding depends on your project, role, and business capacity.


Frequently Asked Questions

Q: Is NRC IRAP funding to hire young graduates repayable?
No. This is non-repayable wage support, not a loan.

Q: How much wage support can my business receive?
There is no published maximum. NRC IRAP covers a portion of salary costs, and the amount varies by project and assessment.

Q: Can I hire more than one young graduate?
Yes, sometimes. Each position must be justified and approved based on your innovation needs.

Q: Do remote or hybrid roles qualify?
They can, as long as the graduate is employed by your Canadian business and works on eligible activities.

Q: Is this program available in every province?
Yes. NRC IRAP is a federal program available across Canada.


Next Steps

If you plan to grow your team and need technical or innovation skills, NRC IRAP funding to hire young graduates can help reduce your wage costs. Make sure the role supports a clear innovation project and start your application early.

GrantHub tracks hundreds of hiring and wage subsidy programs across Canada, including federal and provincial options. This makes it easier to find programs that match your business before you apply.

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