Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP)
The Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP) is a subsidy for employers that hire temporary foreign workers (TFW) to work in occupations related to the food supply chain, such as agriculture, fishing, food production, and processing. The program reimburses employers for costs associated with the mandatory 14-day isolation period for temporary foreign workers after entering Canada. Employers are reimbursed for expenses incurred after March 25th, 2020 up to a maximum of $1,500 per TFW. PBO estimates 39,689 workers will be eligible for the program and the program will have a total cost of $59.5 million in 2020-2021.
The Mandatory Isolation Support for Temporary Foreign Workers Program (MISTFWP) is a subsidy for employers that hire temporary foreign workers (TFW) to work in occupations related to the food supply chain, such as agriculture, fishing, food production, and processing. The program reimburses employers for costs associated with the mandatory 14-day isolation period for temporary foreign workers after entering Canada.
Employers are reimbursed for expenses incurred after March 25th, 2020 up to a maximum of $1,500 per TFW.
PBO used the number of TFW whose work permits became effective between April 1st, 2019 and December 31st, 2019, and who worked in occupations that are eligible for the subsidy, to estimate the number of TFW who would have been eligible for the program had it been in place in 2019. The percentage decline in TFW who entered Canada in April 2020 relative to April 2019 (14%) was then applied to this estimate to approximate the number of TFW in the eligible occupations who will enter Canada between April 1st, 2020 and December 31st, 2020.
The total cost of this program was then calculated by multiplying the projected number of eligible TFW by the maximum $1,500 subsidy per worker.
PBO estimates 39,689 workers will be eligible for the program and the program will have a total cost of $59.5 million in 2020-2021.
The estimate is sensitive to the number of TFW who will enter Canada this year, which is highly uncertain due to COVID-19. The historical data that was used contains information on when TFW work permits become effective. If there is a lag between work permits becoming effective and workers entering Canada, it could be a source of error in the cost estimate.
- Estimates are presented on an accrual basis as would appear in the budget and public accounts.
- A positive number implies a deterioration in the budgetary balance (lower revenues or higher spending). A negative number implies an improvement in the budgetary balance (higher revenues or lower spending).
- “-“ = PBO does not expect a financial cost