“New wage levels impact LMIA applications and determine stream eligibility under the TFWP.”
In a move aimed at keeping pace with labour market conditions and ensuring fair compensation for foreign workers, Employment and Social Development Canada (ESDC) has raised the wage thresholds under the Temporary Foreign Worker Program (TFWP) across nearly all Canadian provinces and territories.
The new wage thresholds, which came into effect on June 27, 2025, will apply to all Labour Market Impact Assessment (LMIA) applications submitted on or after that date. These thresholds play a key role in determining which stream of the TFWP a job offer falls under—high wage or low-wage—which in turn affects employer obligations, processing timelines, and eligibility requirements.
NEW TFWP WAGE THRESHOLDS BY PROVINCE
Here’s a full breakdown of the updated wage thresholds:
WHAT THIS MEANS FOR EMPLOYERS AND WORKERS
Under the TFWP, the wage offered to a foreign worker determines whether the employer must apply through the high-wage or low-wage stream:
- High-Wage Stream: If the wage offered is at or above the new provincial threshold, the employer must apply under the high-wage stream. This stream generally requires a transition plan, outlining how the employer will reduce reliance on foreign labour over time.
- Low-Wage Stream: If the wage offered is below the threshold, the employer must apply under the low-wage stream. This stream has stricter limits on how many temporary foreign workers can be hired per workplace and includes additional recruitment and housing obligations.
Employers must carefully review these new thresholds before submitting an LMIA application to ensure compliance. Applications that do not meet the revised wage criteria will be refused.
IMPACT ON CANADA’S LABOUR MARKET AND RECRUITMENT STRATEGIES
The wage threshold increase is part of Canada’s broader strategy to protect both domestic workers and foreign nationals from wage suppression, while still allowing employers to address acute labour shortages—especially in sectors like agriculture, manufacturing, health care, and hospitality.
For employers in industries heavily reliant on temporary foreign labour, the change could mean:
- Reassessing job offers to meet the new wage standards.
- Budgeting for higher payroll costs.
- Strategically using the high-wage stream to avoid restrictions imposed under the low-wage stream.
The update also emphasizes the government’s ongoing focus on ensuring temporary foreign workers are paid fairly and integrated into a labour market that balances economic growth with social responsibility.
NEED HELP NAVIGATING LMIA APPLICATIONS?
Employers and foreign workers may benefit from consulting a qualified immigration law firm to assess how these changes affect their eligibility or hiring plans.
For more information, schedule a consultation with our licensed immigration consultant.
