Canada increases wage thresholds for Temporary Foreign Worker Program
Employment and Social Development Canada (ESDC) has increased the wage thresholds for employers and foreign nationals applying under the Temporary Foreign Worker Program (TFWP).
This change determines which stream of the TFWP foreign nationals may be eligible under as well as the ability of their employers to apply for the necessary Labour Market Impact Assessments (LMIAs).
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What changes have been made to the TFWP?
As of 27 June, ESDC has increased the applicable wage threshold under the TFWP for nearly all of Canada’s provinces.
This new wage threshold will be in effect for all LMIA applications received on or after June 27, 2025:
| Province/Territory | Old wage threshold ($ CAD) | New wage threshold ($ CAD) | Percentage increase |
|---|---|---|---|
| Alberta | 35.40 | 36.00 | 1.69% |
| British Columbia | 34.62 | 36.60 | 5.71% |
| Manitoba | 30.00 | 30.16 | 0.53% |
| New Brunswick | 28.85 | 30.00 | 3.98% |
| Newfoundland and Labrador | 31.20 | 32.40 | 3.85% |
| Northwest Territories | 47.09 | 48.00 | 1.93% |
| Nova Scotia | 28.80 | 30.00 | 4.17% |
| Nunavut | 42.00 | 42.00 | 0.00% |
| Ontario | 34.07 | 36.00 | 5.66% |
| Prince Edward Island | 28.80 | 30.00 | 4.17% |
| Quebec | 32.96 | 34.62 | 5.04% |
| Saskatchewan | 32.40 | 33.60 | 3.70% |
| Yukon | 43.20 | 44.40 | 2.78% |
How a foreign national’s wage relates to these thresholds determines which stream of the TFWP they are eligible under: high-wage or low-wage.
If a foreign national’s wage is at or above the wage threshold listed above (in the province where their employment is based), then their employer must apply under the high-wage stream of the TFWP.
If a foreign national’s wage is below the wage threshold in the relevant province, then their employer must apply under the low-wage stream of the TFWP.
Further implications of this change
The increased threshold affects the regions in which employers are able to apply for LMIAs under the low-wage stream of the TWFP.
There is currently a moratorium on the processing of LMIAs under the low-wage stream of the TFWP in areas with an unemployment rate of 6% or higher, as first took effect on 26 September 2024
If a job was previously above the threshold and is now below the threshold, the employer will not be able to apply for an LMIA for that role within one of these regions—meaning that no foreign national will be able to apply for or renew a work permit under the TFWP for that job.
The table below details the Census Metropolitan Areas (CMAs) where this low-wage LMIA freeze is in effect:
| Census Metropolitan Area | Unemployment rate (%) 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 |
This moratorium is expected to be in place until at least July 10, 2025.
Further restrictions on low-wage LMIAs
In addition to the above, ESDC has imposed other restrictions on low-wage LMIAs based on the composition of a work location’s labour force.
Low-wage positions above the 10% cap
Low-wage LMIA applications will not be processed if low-wage positions exceed 10% of the total workforce at a specific work location. Workplaces in certain sectors have a higher threshold:
Low-wage positions in certain sectors above the 20% cap
Within the following sectors, subsectors, and occupations, LMIA applications will not be processed if low-wage positions make up more than 20% of the total workforce at a particular work location:
- North American Industry Classification (NAICS) group 23 – Construction positions;
- NAICS group 311 – Food manufacturing positions;
- NAICS group 622 – Hospital positions; and
- NAICS group 623 – Nursing and residential care facility positions.
Specific in-home caregiver roles under
- National Occupation Classification (NOC) 31301 – Registered nurse or registered psychiatric nurse;
- NOC 32101 – Licensed practical nurse;
- NOC 44100 – Home childcare providers; and
- NOC 44101 – Attendant for persons with disabilities, home support worker, live-in caregiver, personal care attendant.
ESDC and Immigration, Refugees and Citizenship Canada (IRCC) are reviewing the effects of including these in future measures.
About the TFWP
The TFWP is an employer-led work permit program, administered jointly between IRCC and ESDC.
The program is intended to facilitate the hiring of foreign nationals by employers within Canada when a Canadian permanent resident or citizen is not available to fill the position.
Throughout 2024, the TFWP came under increased scrutiny for alleged worker abuses and wage suppression by some employers.
Alleged overuse of the TFWP was also blamed for contributing to a large temporary residency population, putting pressure on social services and housing affordability.
In response, the federal government instituted a number of measures and rollbacks to curb the use of the TFWP among employers in Canada, including
- Reducing the period of validity for LMIAs from one year to six months;
- Reducing the duration of employment under the TFWP low-wage stream;
- Establishing targets of annual levels of net new foreign workers admitted through the TFWP; and
- Removing the ability of visitors to Canada to apply for a job-supported work permit under the TFWP.
More information on impactful changes made to the TFWP can be found here.
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