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Canada increases wage thresholds for Temporary Foreign Worker Program

On June 27, 2025, Employment and Social Development Canada (ESDC) announced new wage thresholds for employers and foreign workers under the Temporary Foreign Worker Program (TFWP). This change marks a significant development in Canada’s ongoing effort to protect workers, prevent misuse of temporary programs, and ensure foreign hiring aligns with labour market needs.

This article explores the new wage thresholds, their impact on employers and foreign workers, and the broader trends shaping the future of the TFWP.

ESDC has raised the provincial and territorial wage thresholds that determine which stream of the TFWP applies, either high-wage or low-wage. The threshold is based on the provincial median wage. If a foreign national is offered a wage at or above the threshold, their employer must apply under the high-wage stream. If below, the application falls under the low-wage stream.

The new thresholds apply to all Labour Market Impact Assessment (LMIA) applications submitted on or after June 27, 2025.

Here’s the updated list of new median wage thresholds by province or territory:

• Alberta: Old – $35.40; New – $36.00 (Increase of 1.69%)
• British Columbia: Old – $34.62; New – $36.60 (Increase of 5.71%)
• Manitoba: Old – $30.00; New – $30.16 (Increase of 0.53%)
• New Brunswick: Old – $28.85; New – $30.00 (Increase of 3.98%)
• Newfoundland and Labrador: Old – $31.20; New – $32.40 (Increase of 3.85%)
• Northwest Territories: Old – $47.09; New – $48.00 (Increase of 1.93%)
• Nova Scotia: Old – $28.80; New – $30.00 (Increase of 4.17%)
• Nunavut: Old – $42.00; New – $42.00 (No change)
• Ontario: Old – $34.07; New – $36.00 (Increase of 5.66%)
• Prince Edward Island: Old – $28.80; New – $30.00 (Increase of 4.17%)
• Quebec: Old – $32.96; New – $34.62 (Increase of 5.04%)
• Saskatchewan: Old – $32.40; New – $33.60 (Increase of 3.70%)
• Yukon: Old – $43.20; New – $44.40 (Increase of 2.78%)

Wage Threshold Implications

The threshold wage continues to serve as the primary determinant for whether an application falls under the high-wage or low-wage stream. Employers offering a wage that meets or exceeds the provincial median must proceed under the high-wage stream. For offers below that amount, the low-wage stream applies.

However, employers should be aware of regional restrictions, especially when applying under the low-wage stream. In areas where the unemployment rate is 6% or higher, a moratorium on low-wage LMIA processing remains in effect. This means employers in affected regions will not be able to submit low-wage LMIA applications unless the unemployment rate drops below that threshold.

Impact of Low-Wage Moratorium

The following Census Metropolitan Areas (CMAs) are currently affected by this moratorium (effective April 4 to July 10, 2025):

Alberta

• Calgary: 7.8%
• Edmonton: 7.3%
• Red Deer: 8.4%

British Columbia

• Abbotsford-Mission: 6.2%
• Kamloops: 7.1%
• Kelowna: 6.7%
• Nanaimo: 6.0%
• Vancouver: 6.6%

New Brunswick

• Fredericton: 6.9%
• Saint John: 7.7%

Newfoundland and Labrador

• St. John's: 7.6%

Ontario

• Barrie: 7.5%
• Brantford: 7.2%
• Guelph: 6.2%
• Hamilton: 7.3%
• Kingston: 7.2%
• Kitchener-Cambridge-Waterloo: 8.5%
• Oshawa: 8.0%
• Peterborough: 9.9%
• St. Catharines-Niagara: 7.7%
• Toronto: 8.6%
• Windsor: 9.3%

Quebec

• Drummondville: 8.0%
• Montréal: 6.7%

If a position that previously qualified as high-wage now falls under the low-wage stream due to the updated thresholds, and the region is under the moratorium, then no new LMIA can be submitted, and current permits cannot be renewed for that role under the TFWP.

Additional Restrictions on Low-Wage Applications

Apart from regional constraints, ESDC continues to enforce national restrictions on the number of low-wage positions an employer may hold.

• In general, low-wage workers cannot exceed 10% of the workforce at a given work location.
• However, a 20% cap applies for select sectors and roles, including:
  • Construction (NAICS 23)
  • Food manufacturing (NAICS 311)
  • Hospitals (NAICS 622)
  • Nursing and residential care facilities (NAICS 623)

Specific in-home caregiver positions under the following NOC categories are also impacted:

• NOC 31301 – Registered nurse or psychiatric nurse
• NOC 32101 – Licensed practical nurse
• NOC 44100 – Home childcare provider
• NOC 44101 – Attendant for persons with disabilities, home support worker, live-in caregiver

These caps aim to regulate the reliance on temporary labour in specific industries and reduce the possibility of labour force distortions.

Understanding the TFWP Context

The Temporary Foreign Worker Program is jointly administered by ESDC and Immigration, Refugees and Citizenship Canada (IRCC). It allows employers in Canada to hire foreign nationals when no Canadian citizens or permanent residents are available to fill specific roles.

In recent years, the program has faced criticism concerning working conditions, wage disparities, and alleged overuse. These concerns have also intersected with debates about Canada’s growing temporary resident population and the corresponding strain on housing and public services.

As a result, several reforms were rolled out, including:

• Reducing LMIA validity from 12 months to 6 months
• Shortening durations for employment under the low-wage stream
• Setting annual targets for the number of new foreign workers
• Removing the pathway for visitors in Canada to apply for job-supported TFWP work permits

If you are looking to Study, Work, Visit or Migrate to Canada, talk to I Can Help Immigration Services, at +1 778 239 7861 or +1 647 453 7660 with RCIC # R413239, Canada’s No.1 Immigration & Visa Company to get the best help you need.