Hours cut before retirement? New Work-Sharing and retraining support

What is the news?

On October 22, 2026, Employment and Social Development Canada announced the launch of an online employer application for the Workforce Retention and Retraining Program (WRRP). It brings together Work-Sharing and retraining support to help employers keep workers during periods of economic change.

For someone approaching retirement, reduced hours can put pressure on the household budget. This program may provide another option to discuss with your employer or union before changing your retirement plans.

Source: official October 22 launch announcement

Who is affected?

The program supports eligible employers and employees in an approved Work-Sharing arrangement. Workers can remain employed with fewer hours and receive Employment Insurance (EI) support if they qualify.

• Older employees can be included. Being over 50 or close to retirement does not itself establish eligibility.
• Your employer must participate. You cannot arrange a personal reduction in hours and assume the program will pay you.
• You must qualify for EI. Service Canada assesses an employee's eligibility after their EI application.
• Different rules can apply. Standard Work-Sharing requirements and temporary tariff measures have different employer and employee conditions.

Source: employer and employee eligibility, including special measures

How can the program help with income?

Eligible workers may receive a combination of wages for hours worked, Work-Sharing EI benefits, and additional income support while participating in eligible training. The aim is to keep income closer to normal while workers build skills.

Under the WRRP terms checked on October 26, 2026, employers may also receive up to $1,000 per eligible participant for training and administration. That funding is for the employer's eligible costs; employee income support is separate.

Source: how WRRP supports employees · Official grant terms and employer funding

A simple reduced-pay example

Suppose your usual pay is $900 a week before deductions. Your hours fall by 20%, and your hourly rate stays the same. Assume no overtime or other pay changes.

This example shows the wage gap only. It does not calculate an EI benefit or a training supplement, or promise that the full $180 will be replaced. Your approved support and deductions determine the amount you receive.

What should you ask your employer or union?

1. Could our workplace qualify? Ask which Work-Sharing stream applies and whether an agreement is already in place.
2. What would I receive? Ask for separate estimates of wages, EI and any training supplement, including deductions and payment timing.
3. What training would I need to complete? Confirm the training schedule and attendance requirements. Eligible training takes place during non-working hours.
4. What happens to my workplace pension and benefits? Ask the plan administrator how reduced hours and training affect your particular plan and insurance coverage.

The employer starts the workplace application. Employees must follow Service Canada's instructions for their own EI application. Employers with an active agreement do not need to submit a new application simply because of the WRRP launch; they should confirm which new supports apply.

Official employer application instructions · Official training requirements · Existing agreements and employee information

Review the effect on your retirement budget

Compare your expected income with essential spending before changing your retirement date or planning withdrawals from savings. Use the annual-review checklist and Income Estimator to review your broader plan. The estimator does not calculate WRRP entitlement.

If you have already lost your job, read our separate EI relief and claim-deadline explainer. Work-Sharing arrangements and regular EI after a job loss have different requirements.