Canada increases wage thresholds for temporary foreign worker hired by Canadian employers

Employers must file for a Labour Market Impact Assessment under the low-wage position stream or the high-wage position stream, depending on the wage offered for the post.

Written by Sunil Dhawan

July 6, 2025 14:11 IST

jobs in Canada, Canada LMIA wage threshold, temporary foreign workers program, TFWP changes, TFWP reforms

The applicable wage threshold under the TFWP has been raised by ESDC for almost every province in Canada as of June 27. (Reuters)

Canada has increased the wage thresholds for the Temporary Foreign Worker Program used to hire foreign workers in the country. The wage limits for companies and foreign nationals applying via the Temporary Foreign Worker Program (TFWP) have been raised by the Employment and Social Development Canada (ESDC) effective June 27.

The wage being offered for the position will determine if employers need to apply for a Labour Market Impact Assessment (LMIA) under the stream for high-wage positions or the stream for low-wage positions.

The applicable wage threshold under the TFWP has been raised by ESDC for almost every province in Canada as of June 27. On or after June 27, 2025, this new wage level will apply to all LMIA applications.

If you are offering a wage to a temporary foreign worker (TFW) that’s:

At or above the provincial or territorial wage threshold, you must apply under the stream for high-wage positions and meet the program requirements of this stream

Below the provincial or territorial wage threshold, you must apply under the stream for low-wage positions, and meet the program requirements of this stream.

The Temporary Foreign Worker (TFW) Program allows Canadian employers to hire foreign workers for temporary jobs when qualified Canadians are unavailable. However, the Canadian government claims it has been misused to bypass hiring talented Canadians. Employers must obtain a Labour Market Impact Assessment before using the program.

Therefore, new rules of the Temporary Foreign Worker Program are in place effective September 26, 2024.

The Government of Canada will refuse to process Labour Market Impact Assessments (LMIAs) in the Low-Wage stream, applicable in census metropolitan areas with an unemployment rate of 6% or higher.

No more than 10% of an employer’s total workforce may be hired through the TFW Program.

For employees hired under the Low-Wage stream, the maximum employment period will be lowered from two years to one year.

Beginning in October 2023, the cap on temporary foreign workers was raised from 30% to 20%, and the validity term of Labour Market Impact Assessments was shortened from 18 months to 6 months.