Canada Raises Temporary Foreign Worker Wages

Temporary Foreign Worker Program updates take effect June 27, 2025, raising median‑wage benchmarks across Canada’s provinces and territories. These changes mean employers must now offer higher hourly rates to qualify under the high‑wage stream or face stricter limits in the low‑wage stream. Understanding the new thresholds and associated rules will help you prepare accurate LMIA applications and stay compliant. This guide breaks down the revised wage figures, stream requirements, and key steps for employers. By following these practical insights, you can navigate the updated process with confidence and avoid costly delays.

Table of Contents

1. Program Overview

2. Revised Wage Thresholds by Province

3. High‑Wage vs. Low‑Wage Streams

4. Low‑Wage Stream Restrictions

5. Caps on Caregiving and Other Roles

6. Program Reforms in 2024

7. Steps for Employers

8. Expert Takeaways

9. Conclusion

1. Program Overview: Temporary Foreign Worker Program Explained

The Temporary Foreign Worker Program (TFWP) lets Canadian employers hire foreign nationals when they cannot find qualified Canadian citizens or permanent residents. Before hiring, employers must secure a positive Labor Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). The LMIA confirms that the foreign hire will pose no adverse effect on Canada’s labor market.

Under the TFWP, job offers classify as either high‑wage or low‑wage. Classification depends on whether the offered wage meets or exceeds the regional median hourly wage. Employers use the LMIA application to declare the wage and must attach proof of recruitment efforts among Canadians and permanent residents.

Relevant Resources:

• ESDC’s Temporary Foreign Worker Program page

• IRCC’s work permit overview

2. Revised Wage Thresholds by Province in the Temporary Foreign Worker Program

Effective June 27, 2025, ESDC raised the median‑wage benchmarks across most provinces and territories. Below is a table showing the previous threshold and the new threshold for key jurisdictions:

Employers must compare their offered hourly wage directly against these figures to determine the proper stream for LMIA submission.

3. High‑Wage vs. Low‑Wage Streams under the Temporary Foreign Worker Program

High‑Wage Stream

• Criteria: Wage greater than or equal to revised median.

• Benefits: Longer work permits; no caps on workforce percentage.

• Application: Full LMIA fee (CAD 1,000); standard processing times.

Low‑Wage Stream

• Criteria: Wage less than revised median.

• Limits: Employer’s low‑wage positions must not exceed 10% of total workforce (20% in specified industries).

• Moratorium Areas: Provinces/regions with ≥ 6% unemployment remain barred from low‑wage LMIAs until at least July 10, 2025.

4. Low‑Wage Stream Restrictions in the Temporary Foreign Worker Program

Since September 26, 2024, ESDC enforces a moratorium on new low‑wage LMIAs in high‑unemployment areas. Employers in cities or regions with an unemployment rate of 6% or higher cannot apply under the low‑wage stream.

Workforce Caps

• General cap: Low‑wage roles less than or equal to 10% of total staff at each worksite.

• Industry cap (20%):

  1. Construction (NAICS 23)

  2. Food Manufacturing (NAICS 311)

  3. Hospitals (NAICS 622)

  4. Nursing and Residential Care (NAICS 623)

Employers must attest to these caps in their LMIA application and may face penalties for non‑compliance.

5. Caps on Caregiving and Other Roles under the Temporary Foreign Worker Program

ESDC has extended similar caps to selected National Occupation Classification (NOC) groupings:

• Registered Nurses (NOC 31301)

• Nurse Aides, Orderlies, and Patient Service Associates (NOC 34103)

• Home Childcare Providers (NOC 44100)

These positions now follow the 10% general cap (20% in specified industries). ESDC and Immigration, Refugees and Citizenship Canada (IRCC) will review the impact of these measures and may adjust them further.

6. Program Reforms in 2024 and Policy Rationale

In 2024, public and parliamentary reports highlighted cases of wage suppression and worker exploitation under the TFWP. In response, the federal government introduced multiple reforms:

1. Reduced LMIA Validity

   • From 12 to 6 months.

2. Shortened Low‑Wage Work Permits

   • Maximum duration cut from 24 to 12 months.

3. Admission Caps

   • Annual limit on low‑wage foreign workers.

4. Visitor Work Permit Ban

   • Removed on‑site job‑offer option for visitors (except specific sectors).

These changes aim to protect Canadian workers, ensure fair wages, and reduce pressure on housing and public services.

7. Steps for Employers: Navigating the New Wage Thresholds

1. Review Provincial Thresholds

   • Check your province’s revised median wage on the ESDC website.

2. Assess Job Offer

   • Compare the hourly rate you plan to offer against the threshold.

   • If it meets or exceeds, prepare a high‑wage LMIA; if not, confirm eligibility for low‑wage.

3. Audit Workforce Composition

   • Calculate the percentage of low‑wage roles at each location.

   • Ensure you remain under the 10% cap (or 20% if applicable).

4. Confirm Unemployment Rates

   • Consult Statistics Canada for regional unemployment data.

   • Avoid low‑wage applications in regions above 6% unemployment.

5. Submit LMIA Application

   • Complete ESDC’s online portal, upload recruitment proof, and pay the fee.

6. Monitor Processing and Compliance

   • Track your application in the ESDC portal.

   • Maintain records for audits (e.g., payroll, recruitment ads).

For LMIA deadlines, consult the official notice.

8. Expert Takeaways on the Temporary Foreign Worker Program Changes

• Plan Early: Wage increases take effect June 27, 2025. Update job offers now.

• Stay Compliant: Violating caps or moratoriums can trigger fines up to CAD 100,000.

• Use Authoritative Sources: Verify thresholds on ESDC’s site. Refer to Statistics Canada for unemployment data.

• Seek Legal Advice: For complex workforce structures, consult an accredited immigration attorney or qualified consultant.

Conclusion

By June 27, 2025, updated wage thresholds reshape how employers participate in the Temporary Foreign Worker Program. To avoid application delays and penalties, review your provincial median wage, classify positions correctly as high‑wage or low‑wage, and verify workforce caps and regional unemployment rates before filing your LMIA. Keep recruitment records, monitor policy updates, and consult qualified immigration advisors for complex cases. Proactive planning and strict compliance will ensure you secure the talent you need while meeting Canada’s evolving labor‑market requirements.

Maple Crest Immigration Law Firm

Bothered about how to navigate Canada’s Temporary Foreign Worker Program with confidence? At Maple Crest Immigration Law Firm, our experienced team will help you interpret the new wage thresholds, prepare a bulletproof LMIA application, and ensure full compliance every step of the way. Don’t let changing rules delay your hiring plans—contact us today for a personalized consultation and secure the skilled talent your business needs. Book a consultation with Maple Crest Law today.