One of the main advantages of an apprenticeship compared to college or university programs is that you have the opportunity to earn while you learn. Still, there are costs associated with becoming an apprentice.
There are a range of potential funding supports available for apprentices. As you work through your journey to apprenticeship with your employment counsellor, consider some of these sources of funding to help you along. Remember, this list may not be complete – your labour market research may also help you to find other sources of funding.
The Government of Ontario and the Government of Canada both provide a number of financial supports and incentives for apprentices and employers who are also their apprentice’s sponsor.
For Apprentices
Provincially Administered Incentives:
Apprenticeship Scholarship
The Apprenticeship Scholarship, available through Employment Service providers, provides up to $1,000 to support individuals who require academic upgrading to meet the eligibility requirements for their chosen trade.
Loans for Tools
The Loans for Tools program provides loans for apprentices to purchase essential tools or equipment for their training program.
Support for Non-EI Eligible Apprentices during In-School Training
This initiative provides up to $1,500 of taxable financial supports for apprentices who attend full-time in-school apprenticeship training and are not eligible for Employment Insurance (EI).
Apprenticeship Completion Bonus in Non-Red Seal Trades
This bonus is a taxable cash grant of $2,000 available to apprentices after they complete their apprenticeship training and obtain their C of A and, where applicable, their C of Q, in any Ontario non-Red Seal trade.
For more Information on these financial supports, visit the Employment Ontario website: http://www.tcu.gov.on.ca/eng/employmentontario/training/financial.html
Federally Administered Incentives:
Canada Apprenticeship Loan
Started in January 2015, apprentices in Red Seal trades can apply for up to $4,000 in interest-free loans per period of technical training to: help pay for tuition, tools, equipment and living expenses; cover forgone wages; or to help support their family.
www.pca-cal.ca/en/home
Apprenticeship Incentive Grant
The Apprenticeship Incentive Grant (AIG) is a taxable cash grant of $1,000 per year (up to a maximum of $2,000 per person) that is available to apprentices once they have completed their first or second level (or equivalent) of an apprenticeship program in a Red Seal trade.
https://www.canada.ca/en/employment-social-development/services/funding/apprenticeship-incentive-overview.html
Apprenticeship Completion Grant
The Apprenticeship Completion Grant is a one-time taxable cash grant of up to $2,000 available to registered apprentices who have successfully earned their C of Q in a designated Red Seal trade.
https://www.canada.ca/en/employment-social-development/services/funding/apprenticeship-completion-overview.html
Source: The above information was sourced from an October 2016 Apprenticeship resource put together by the Ministry of Advanced Education and Skills Development (MAESD). The full pdf document can be found here: http://www.tcu.gov.on.ca/eng/eopg/publications/appr-resource-eo-sp-en.pdf
For Employers
As of November 14, 2017, the Graduated Apprenticeship Grant for Employers (GAGE) replaced other grants and tax credits that were previously available. GAGE is an incentive for employers to hire and keep apprentices. The employer receives between $2,500-$4,700 for each level an apprentice completes. (Details are available in the source document listed below, on page 6, Question # 13.) There is an additional monetary bonus to the employer for each level if the apprentice is from an underrepresented group (women, newcomers, visible minorities, Indigenous peoples, people with disabilities, Francophones).
- Employers registering an apprentice after November 14, 2017, will be automatically assessed for GAGE grant eligibility. Eligible employers will receive grant payments as the apprentice completes each level of training (payments will begin as early as June 2018).
- As part of GAGE, the government is also committed to developing an additional incentive for in-demand trades in June 2018 based on available labour market information.
- In order to support the new grant, employers that are eligible for GAGE will no longer be eligible for the Employer Completion Bonus (ECB). The ECB is a $1,000 grant that an eligible employer receives when apprentices complete their Apprenticeship training. The ECB will continue to be available to employers with apprentices in trades that would not be eligible for the new Graduated Apprenticeship Grant for Employers (GAGE).
- GAGE phases out previous employer grants, such as the Apprenticeship Training Tax Credit (ATTC). The ATTC was a tax credit employers could apply for, which was started in 2004. It is now in wind-down. The ATTC and ECB would be “grand-parented” for all eligible employers in respect of apprentices registered on or before November 14, 2017. This means that these employers would continue to be eligible for the ATTC for up to 36 months, and the ECB.
Source: The above information about the Graduated Apprenticeship Grant for Employers (GAGE) comes from a January 2018 update put together by the Ministry of Advanced Education and Skills Development (MAESD). You can view the full document here: http://www.tcu.gov.on.ca/eng/eopg/publications/appr-gage-attc-ecb-gsg-external-qs-as-en.pdf
For more Information on these financial supports, visit the Employment Ontario website: http://www.tcu.gov.on.ca/eng/employmentontario/training/financial.html
