Featured
article
- Get link
- X
- Other Apps
New Federal Budget to Deliver $1,100 Tax Credit for Personal Support Workers
Jobs and Families Minister Patty Hajdu
The federal government has announced a major new measure in Budget 2025 aimed at supporting Canada’s personal support workers (PSWs). The initiative introduces a refundable tax credit of up to $1,100 per year for eligible PSWs, a move expected to benefit more than 200,000 frontline care workers across the country.
Unveiled by Jobs and Families Minister Patty Hajdu, the credit is designed to recognize the essential role PSWs play in Canada’s healthcare system, particularly in caring for seniors and vulnerable populations. The refundable nature of the credit means that even low- and modest-income workers, who may not owe income tax, will still be able to claim the benefit.
The program will allow PSWs to claim five per cent of their eligible earnings, up to the $1,100 maximum, for the next five years. This measure comes after sustained advocacy from healthcare unions, including SEIU Healthcare, which had been calling for financial relief for PSWs since 2024 Newswire.
Alongside the tax credit, Budget 2025 also includes a $75 million investment in the Union Training and Innovation Program to expand apprenticeship opportunities in the skilled trades, as well as commitments to speed up the recognition of foreign professional credentials.
Union leaders and healthcare advocates have welcomed the announcement, calling it a “long overdue recognition” of the sacrifices and contributions made by PSWs, especially during the pandemic years. The government has framed the measure as part of a broader effort to make life more affordable for workers while strengthening Canada’s healthcare system.
With Canada’s aging population driving up demand for long-term care, the new tax credit is being positioned as both a financial relief measure and a recruitment tool to help attract and retain workers in a sector facing chronic shortages.
In short: Budget 2025 delivers a landmark win for PSWs, offering direct financial support while reinforcing their critical role in the country’s healthcare system.
Popular Posts
Trump's Six Words: "I'm Going to Stop the Wars"
- Get link
- X
- Other Apps
Smart Savings for a Sharp School Start: Canadian Parents’ 2025 Guide
- Get link
- X
- Other Apps
Comments
Post a Comment