Minister Valdez highlights Budget 2025 investment in personal support workers and skilled professionals

WINNIPEG, MB, Nov. 13, 2025 /CNW/ - In a rapidly changing and uncertain world, the federal government is focused on what we can control. We are protecting our communities and our country. We are building our economy with major projects and millions more homes. And we are empowering Canadians through lower costs and new opportunities to help them get ahead. We cannot control what other nations do, but we can control what we choose to build--and we are building Canada strong.

Canada has a skilled and adaptable workforce--the most educated in the world--and Budget 2025 lays out a plan to deliver generational, transformational investments to grow our economy, empower workers, create high-paying careers, and protect and support those most affected by trade disruptions.

Today, the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), highlighted that Budget 2025 proposes to introduce new tax measures to support personal support workers and skilled professionals.

The temporary 5-year Personal Support Workers Tax Credit is expected to support personal support workers and recognize the vital role they play in communities. Eligible workers will be able to claim a refundable tax credit equal to 5% of their eligible income, providing support of up to $1,100 per year. This new tax credit will be available in provinces and territories that are not covered by a bilateral agreement with the federal government to increase wages for personal support workers.

Budget 2025 also proposes to provide $97 million over 5 years, starting in 2026–2027, to Employment and Social Development Canada (ESDC) to establish the Foreign Credential Recognition Action Fund. ESDC will work with the provinces and territories to improve fairness, transparency, timeliness and consistency in foreign credential recognition, with a focus on health and construction sectors.

These investments will continue to ensure that we are building up one of the strongest workforces in the world, as we build a stronger and more resilient Canada. The federal government will continue to invest in the people who make our communities strong as we face this transformational moment in our country's history.

Quotes

"Many Canadians rely on personal support workers, and the government is committed to helping them in their critical work of caring for our loved ones. This tax credit empowers these important workers by putting more of their hard-earned money back in their pockets. We're also investing to help internationally trained professionals get recognized and working sooner. Through the new Foreign Credential Recognition Action Fund, we're improving fairness and transparency so skilled workers in sectors like health care and construction can strengthen our communities."
– The Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism)

Quick facts

• Personal support workers help Canadians to live and grow old with dignity, and they helped us get through the COVID-19 pandemic. The February 2023 Working together to improve health care for Canadians plan provided $1.7 billion over 5 years to increase wages for personal support workers, with bilateral agreements signed by British Columbia ($232 million), Newfoundland and Labrador ($25 million), and the Northwest Territories ($5.3 million).
• The new Personal Support Workers Tax Credit will be available for the 2026 to 2030 taxation years, to eligible workers employed in provinces and territories not covered by the existing support.
• Many newcomers to Canada already have extensive training in sectors where Canada is experiencing labour shortages, including doctors, nurses and other health care professionals, as well as workers in construction occupations.
• Budget 2025 proposes to provide $97 million over 5 years, starting in 2026–2027, for Employment and Social Development Canada to establish the Foreign Credential Recognition Action Fund and work with the provinces and territories to improve fairness, transparency and timeliness in foreign credential recognition, with a focus on health and construction sectors. This funding would be sourced from existing departmental resources.

Associated links

• Budget 2025

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Contacts: Sarphina Chui, Press Secretary, Office of the Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), [email protected], Media Relations, Innovation, Science and Economic Development Canada, [email protected]