What does Canada Summer Jobs (CSJ) fund? Eligible costs and coverage
Canada Summer Jobs (CSJ) is a federal wage subsidy that helps employers create quality summer work experiences for youth aged 15 to 30. Understanding exactly what CSJ will pay for—and what it will not—is essential to budgeting your placements and submitting accurate claims.
This guide explains CSJ eligible expenses, funding rates by employer type, MERCs coverage, examples of funded projects, and how reimbursement works. As of December 3, 2025, the 2025–2026 call for applications is open and closes December 11, 2025, at 11:59 p.m. Pacific Standard Time.
Program funding overview
CSJ funds a share of youth wages for approved summer jobs in Canada. Not‑for‑profit employers can receive up to 100% of the adult minimum wage plus MERCs; public and private sector employers can receive up to 50% of the adult minimum wage (MERCs not covered). Costs must fall within approved job dates and hours.
Key timing context for the 2025–2026 cycle:
Application window: November 4 to December 11, 2025 (11:59 p.m. PST)
Funding confirmations: expected to begin in April 2026
Typical job delivery window: between late April and late August 2026 (for example, April 20 to August 29)
Budgets are limited and funding is competitive. Your agreement will state the approved number of positions, weeks, hours per week, and the maximum reimbursable rate.
Funding amounts and rates
CSJ uses cost‑sharing. The percentage depends on your employer category and the wage reference used (adult minimum wage in the job’s province or territory).
Not‑for‑profit employers
Up to 100% of the applicable adult minimum hourly wage.
MERCs (Mandatory Employment Related Costs) are also eligible for reimbursement.
Paying above minimum wage is allowed; the top‑up is your responsibility.
Public sector employers (for example, municipalities, public libraries)
Up to 50% of the applicable adult minimum hourly wage.
MERCs are not reimbursed.
Any wage paid above the reimbursable threshold is fully employer‑funded.
Private sector employers (50 or fewer full‑time employees)
Up to 50% of the applicable adult minimum hourly wage.
MERCs are not reimbursed.
You may pay above minimum wage; the excess is employer‑funded.
Important notes on coverage:
The “adult minimum wage” benchmark applies even if a province has a student wage. CSJ reimbursement is capped at the adult minimum rate set by the province/territory where work occurs.
The approved weekly hours are typically 30 to 40; hours must align with your agreement to be reimbursable.
Duration is generally 6 to 16 consecutive weeks per position unless an exception is pre‑approved.
Eligible expenses
CSJ focuses on wages, with limited MERCs coverage for not‑for‑profits. To be eligible, expenses must be:
Directly tied to an approved CSJ position and the youth’s paid hours
Incurred within the approved job start and end dates
Paid to the youth as an employee with standard payroll deductions
Supported by proper payroll records
Eligible cost categories include:
Hourly wages for approved hours worked, up to:
100% of the adult minimum wage for not‑for‑profits
50% of the adult minimum wage for public and private sector employers
For not‑for‑profits only: MERCs proportionate to eligible wages, which typically include:
Employer contributions to CPP/QPP
Employer EI premiums
Workers’ compensation premiums (WSIB/WCB/CSST, as applicable)
Vacation pay and statutory holiday pay, when these are paid as required by law and attributable to the eligible employment period
Approved paid statutory holidays that fall within the youth’s employment period, consistent with labour standards (NFPs may claim the wage and related MERCs; public/private can claim only the wage portion up to 50% and not MERCs)
In limited cases and with pre‑approval, reasonable accommodation costs for youth with disabilities to enable participation (for example, adaptive equipment or services directly linked to the job). These must be clearly identified and approved in your agreement or by your project officer.
Eligibility conditions that affect costs:
Work must take place in Canada; remote work is eligible if performed from within Canada.
Duties must align with the job description approved in your application.
Youth must be new or returning seasonal hires engaged specifically for the CSJ placement; displacing existing employees is not permitted.
Ineligible expenses
CSJ does not fund general operating or project costs outside wages (and, for NFPs, MERCs). Common ineligible items include:
MERCs for public and private sector employers (not reimbursable)
Any wage portion above the applicable adult minimum wage benchmark
Equipment, tools, uniforms, safety footwear, and personal protective equipment
Training fees, certifications, courses, or exams
Travel, transportation, accommodation, or relocation expenses
General administrative overhead (rent, utilities, office supplies, internet, phone)
Supervision and mentoring time for existing staff
Recruitment costs (job postings, background checks, medicals)
Overtime premiums or hours beyond the maximum weekly hours approved in the agreement
Bonuses, honoraria, allowances, tips, or other non‑wage payments
Costs incurred before the approved start date or after the approved end date
Costs linked to activities taking place outside Canada
Costs for roles that do not meet workplace health, safety, and inclusivity standards
When in doubt, treat any non‑wage item as ineligible unless your agreement explicitly authorizes it.
Expense documentation requirements
To receive reimbursement, you must demonstrate that eligible wages were paid and, for not ‑for‑profits, that eligible MERCs were incurred. Keep clear, complete records such as:
Signed employment agreements and the CSJ job description
Proof of youth eligibility to work in Canada and SIN validation in accordance with privacy rules
Time sheets or electronic timekeeping records showing dates and hours worked
Payroll registers for each pay period covering the placement
Pay stubs (or equivalent) confirming gross pay, deductions, and net pay
Proof of payment (bank statements or payroll remittance confirmations)
For MERCs (NFPs): employer CPP/QPP and EI remittance statements, and workers’ compensation premium statements
For statutory holidays and vacation pay: calculations demonstrating compliance with employment standards and attribution to the funded period
If pre‑approved accommodations for a youth with a disability are included: invoices and proof of payment
Retention: Maintain records for audit for at least six years after project completion, or longer if your agreement specifies.
Examples of funded projects
To illustrate how CSJ funding applies in practice, consider these typical scenarios.
Not‑for‑profit community organization
Position: Youth Program Assistant, 35 hours/week for 12 weeks
Province adult minimum wage: $16.00/hour
Eligible wages: 35 × 12 × $16.00 = $6,720 (up to 100% reimbursable)
Eligible MERCs (NFP): CPP/QPP, EI, workers’ compensation, and statutory holiday pay attributable to the period
If the employer pays $17.50/hour, CSJ still reimburses up to the adult minimum wage reference; the $1.50/hour top‑up is employer‑funded.
Municipality (public sector)
Position: Park Maintenance Assistant, 40 hours/week for 10 weeks
Adult minimum wage: $17.00/hour
Eligible wage base: 40 × 10 × $17.00 = $6,800
Reimbursable amount: up to 50% of $6,800 = $3,400
MERCs are not reimbursable.
Small private business (≤50 full‑time employees)
Position: Front‑desk Associate in tourism, 30 hours/week for 14 weeks
Adult minimum wage: $15.50/hour
Eligible wage base: 30 × 14 × $15.50 = $6,510
Reimbursable amount: up to 50% = $3,255
Training fees and uniforms are not eligible; plan to self‑fund these.
These examples assume full weeks within approved dates. Any hours outside approved dates are ineligible.
Funding disbursement and claiming process
CSJ is typically paid on a reimbursement basis after you have paid wages. Your contribution agreement will detail the claiming method and deadlines.
What to expect:
Agreement issuance: If approved, your agreement will list positions, dates, hours per week, and the maximum reimbursable amounts and rates.
Payroll first: You pay the youth through your standard payroll, making all required deductions and employer contributions.
Interim claims (where applicable): For longer projects or multiple positions, you may submit periodic claims with payroll proof. Some not‑for‑profits may be eligible for an advance; this is not guaranteed and is agreement‑specific.
Final claim: Submit the final claim within 30 days after the last funded job ends. Claims after the deadline may not be paid.
Review and payment: Service Canada verifies hours, wage rates, and MERCs (for NFPs). Payment timelines vary based on volumes and the completeness of documentation.
Practical tips:
Align pay periods with CSJ reporting where possible.
Reconcile hours to the agreement weekly to avoid overclaims.
Flag any approved changes (start date shifts, hours adjustments) in writing before claiming.
Stacking rules with other programs
You can combine CSJ with other funding, but caps apply and double‑funding of the same cost is prohibited.
Not‑for‑profits: Total public funding for the same wage costs cannot exceed 100% of eligible wages. CSJ may be adjusted to keep within this ceiling.
Public and private sector employers: CSJ’s share remains capped at up to 50% of the adult minimum wage. Other public funds may contribute, but total public support for the same wage costs should not exceed 100%.
Disclosure: You must disclose all other funding when you apply and when you claim. Undisclosed stacking can lead to recoveries.
Real‑world budgeting tips
Set your wage rate strategically. Paying above minimum wage can help attract talent; budget the top‑up.
Plan hours within the approved weekly range. If your agreement says 35 hours/week, do not claim 40 hours without pre‑approval.
Map the job to the delivery window. Ensure all paid hours fall between the approved start and end dates.
For not‑for‑profits, forecast MERCs carefully. Use current CPP/QPP, EI, and workers’ compensation rates to avoid shortfalls.
Separate ineligible costs. Track equipment, training, and uniforms in a non‑CSJ cost centre.
Document statutory holidays properly. Keep records showing the youth’s entitlement and how pay was calculated.
Be ready for audit. Maintain a neat file of timesheets, payroll proofs, and remittances.
FAQs about covered costs
Does CSJ cover MERCs for private or public employers?
No. MERCs are only reimbursable for not‑for‑profits.
Does CSJ pay for equipment, uniforms, or PPE?
No. These are ineligible and must be employer‑funded.
Are workers’ compensation premiums reimbursable?
For not‑for‑profits, yes, as part of MERCs proportional to eligible wages. Not for public/private.
Does CSJ cover vacation pay and statutory holidays?
When required by law and attributable to the funded period, the wage portion is eligible. For NFPs, related MERCs are also eligible.
Can CSJ fund training or certifications?
No. Training and certification fees are not eligible costs.
Can we claim part‑time hours?
CSJ generally funds full‑time placements (30–40 hours/week). Exceptions require explicit pre‑approval.
Can we claim remote work outside Canada?
No. Work must be performed in Canada.
What is the final claim deadline?
Typically 30 days after the last funded job ends. Your agreement will confirm the exact deadline.
Conclusion
CSJ is a wage subsidy program focused on reimbursing a share of youth wages—up to 100% for not‑for‑profits (including MERCs) and up to 50% for public and private sector employers. Plan your budget around eligible wages, keep accurate payroll records, and submit complete claims by the deadline to receive timely reimbursement. If you are unsure about a specific cost, rely on your agreement details and seek clarification before incurring the expense.
