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Wage Subsidy

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PPGPortal > Home > Concept Dictionary > W, X, Y, Z > Wage Subsidy

Wage Subsidy  

A wage supplement the government provides to low wage individuals.

(Canada Revenue Agency)


A wage subsidy is usually administered through the tax system based on a declining rate of income. In the United States, the wage subsidy is referred to as the Earned Income Tax Credit. In Canada, it is referred to as the Working Income Tax Benefit, designed to provide tax relief to working low-income families who are in the workforce and to encourage those not working to enter the workforce. Wage subsidies are not only in the form of income tax benefits as it can range to include benefits such as the National Child Benefit.


Working Income Tax Benefit. Canada Revenue Agency. Retrieved from

A unique partnership of the Government of Canada, Provinces and Territories and First Nations. National Child Benefit. (2011). Retrieved April 8, 2011 from


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School of Public Policy and Governance