Canada Raises Wage Thresholds for Temporary Foreign Worker Program in Major Policy Shift
  • June 28, 2025
  • CIC News Update
  • 0

In a significant update to Canada’s Temporary Foreign Worker Program (TFWP), the federal government, through Employment and Social Development Canada (ESDC), has implemented a new set of wage thresholds, effective June 27, 2025. These revised wage floors directly impact how employers hire foreign workers and determine whether a job falls under the high-wage or low-wage stream of the TFWP.

This policy adjustment follows ongoing federal efforts to tighten the rules around temporary foreign employment amid concerns about program misuse, labor market disruption, and wage stagnation.

Also Read Canada Reshapes Temporary Foreign Worker Program with Higher Wage Requirements and Stricter Hiring Rules

Wage Threshold Increases by Province: What’s New?

The updated wage thresholds vary by province and territory, with most regions witnessing modest to significant increases. These changes are now mandatory for all new Labour Market Impact Assessment (LMIA) applications.

Province/TerritoryOld Wage Threshold ($ CAD)New Wage Threshold ($ CAD)% Increase
Alberta35.4036.001.69%
British Columbia34.6236.605.71%
Manitoba30.0030.160.53%
New Brunswick28.8530.003.98%
Newfoundland and Labrador31.2032.403.85%
Northwest Territories47.0948.001.93%
Nova Scotia28.8030.004.17%
Nunavut42.0042.000.00%
Ontario34.0736.005.66%
Prince Edward Island28.8030.004.17%
Quebec32.9634.625.04%
Saskatchewan32.4033.603.70%
Yukon43.2044.402.78%

What the New Thresholds Mean for Employers and Workers

The revised wage benchmarks play a crucial role in determining whether a job offer falls under the high-wage stream or the low-wage stream of the TFWP:

  • High-Wage Stream: Applicable when the offered wage equals or exceeds the regional threshold.
  • Low-Wage Stream: Applies when the wage offered falls below the province-specific threshold.

Employers must ensure that their LMIA applications align with these thresholds to avoid rejection or non-processing.

Regions Affected by Low-Wage LMIA Moratorium

Canada maintains a freeze on processing LMIAs under the low-wage stream in regions where unemployment exceeds 6%. This moratorium—originally introduced in September 2024—remains active and affects several Census Metropolitan Areas (CMAs) until at least July 10, 2025.

Census Metropolitan AreaUnemployment Rate (%)
Alberta
Calgary7.8
Edmonton7.3
Red Deer8.4
British Columbia
Abbotsford-Mission6.2
Kamloops7.1
Kelowna6.7
Nanaimo6.0
Vancouver6.6
New Brunswick
Fredericton6.9
Saint John7.7
Newfoundland and Labrador
St. John’s7.6
Ontario
Barrie7.5
Brantford7.2
Guelph6.2
Hamilton7.3
Kingston7.2
Kitchener-Cambridge-Waterloo8.5
Oshawa8.0
Peterborough9.9
St. Catharines-Niagara7.7
Toronto8.6
Windsor9.3
Quebec
Drummondville8.0
Montréal6.7

Employers in these regions cannot apply for low-wage LMIAs unless local unemployment rates fall below the 6% mark.

Additional Caps and Industry-Specific LMIA Limits

Beyond regional freezes, ESDC has imposed additional caps:

  • General Cap: Low-wage positions must not exceed 10% of the total workforce at a worksite.
  • Sectoral Cap: For specific industries, the limit rises to 20% of the workforce. This includes:
    • Construction (NAICS 23)
    • Food manufacturing (NAICS 311)
    • Hospitals (NAICS 622)
    • Nursing and residential care (NAICS 623)

Furthermore, for in-home caregiving roles under the National Occupation Classification (NOC), similar rules apply:

  • NOC 31301 – Registered nurse or psychiatric nurse
  • NOC 32101 – Licensed practical nurse
  • NOC 44100 – Home childcare provider
  • NOC 44101 – Home support worker, caregiver, or personal care attendant

Both ESDC and Immigration, Refugees and Citizenship Canada (IRCC) are reviewing the impact of these restrictions and may introduce further changes.

Background: Why Canada is Reforming the TFWP

The TFWP allows Canadian employers to hire foreign talent when no suitable Canadian worker is available. However, the program has faced scrutiny over the past year due to:

  • Allegations of worker exploitation and wage suppression
  • Its contribution to the rising population of temporary residents
  • Pressures on affordable housing and social infrastructure

As a result, the federal government implemented a suite of reforms throughout 2024 and 2025, including:

  • Shortening LMIA validity from 12 months to 6 months
  • Reducing low-wage work durations under TFWP
  • Setting annual targets for foreign worker intake

Ending the pathway for visitor visa holders to transition into employer-backed TFWP jobs

What This Means Going Forward

For employers: This is a call to reassess recruitment plans, as stricter wage and regional eligibility rules are now in effect.

For foreign nationals: Higher wages may mean better job offers but also fewer available roles if regional or workplace limits apply.

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