The federal government will introduce a new tax credit for personal support workers (PSWs) in its upcoming 2025 budget, part of a broader package aimed at boosting employment, training, and worker protections across Canada.
Jobs Minister Patty Hajdu confirmed the measure Monday, announcing that the tax credit will take effect in 2026 and provide eligible PSWs with savings of up to $1,100 per year. The program will run for five years and is designed to support frontline care workers in provinces and territories that do not already have federal wage supplement agreements. Currently, only British Columbia, Newfoundland and Labrador, and the Northwest Territories have such agreements, meaning PSWs in all other regions will qualify for the new tax break.
“This credit recognizes the essential role that personal support workers play in caring for our aging population and people with disabilities,” Hajdu said. “It’s about giving back to those who give so much.”
The initiative will be included in the 2025 federal budget, which also sets aside $75 million over the next three years to strengthen the Union Training and Innovation Program, aimed at expanding apprenticeship opportunities in the skilled trades.
In addition, Ottawa plans to collaborate with provinces and territories to accelerate the recognition of foreign professional credentials, allocating $97 million from existing employment department funds to help new Canadians enter their professions more quickly.
The budget will also feature a significant labour reform: a proposed amendment to the Canada Labour Code that would ban or restrict non-compete agreements in federally regulated workplaces — a move intended to enhance worker mobility and ensure fair competition.
The combination of tax relief for essential care workers, new apprenticeship funding, and labour protections underscores the federal government’s stated focus on job creation, workforce development, and economic fairness heading into the 2026 fiscal year.