Canada Raises Wage Thresholds for Temporary Foreign Workers

Key Changes to Canada’s Temporary Foreign Worker Program: What You Need to Know

Overview of the Changes

Employment and Social Development Canada (ESDC) has recently adjusted wage thresholds for the Temporary Foreign Worker Program (TFWP), impacting both foreign nationals and their employers. Effective June 27, 2025, these new thresholds will dictate eligibility for the high-wage and low-wage streams of the TFWP, as well as the associated Labour Market Impact Assessments (LMIAs) required for hiring foreign workers.

New Wage Thresholds Across Provinces

As of June 27, 2025, the wage thresholds for various provinces have increased modestly, with British Columbia seeing the highest increase of 5.71%. Below is a snapshot of the old and new wage thresholds:

Understanding the Impact of Wage Thresholds

The increased wage thresholds will determine which TFWP stream an employer must apply under. If a foreign national’s salary meets or exceeds the new threshold, they will qualify for the high-wage stream; otherwise, they will fall into the low-wage stream. This distinction is crucial, as it affects the employer’s ability to secure an LMIA.

Moratorium on Low-Wage LMIA Applications

A significant aspect of this policy change is the moratorium on processing low-wage LMIA applications in regions with an unemployment rate of 6% or higher. This restriction is set to remain effective until at least July 10, 2025, limiting the availability of foreign workers for low-wage positions in these areas, which could exacerbate labor shortages in certain sectors.

Further Restrictions on Low-Wage Positions

The ESDC has introduced additional restrictions on low-wage LMIAs, particularly in workplaces where low-wage positions exceed 10% of the total workforce. In specific sectors, such as construction and healthcare, this threshold is even stricter, set at 20%. This could have profound implications for industries already grappling with labor shortages.

Context and Future Implications

The TFWP has faced increased scrutiny in recent years due to reports of worker exploitation and the program’s role in driving up temporary residency numbers in Canada. Critics argue that the program has contributed to rising pressures on social services and housing markets, prompting the federal government to implement stricter measures.

In response to these challenges, the government has reduced the validity period for LMIAs, shortened employment durations for low-wage positions, and established caps on the number of foreign workers allowed through the TFWP.

Conclusion: Navigating a Changing Landscape

As Canada navigates these changes to the TFWP, both employers and foreign nationals must stay informed and adaptable. The adjustments reflect a broader effort to balance the needs of the labor market with the protection of workers’ rights, posing new challenges and opportunities for adaptation in an evolving economic landscape. Employers should prepare for these upcoming changes to ensure compliance and maintain access to the talent they require.

For those interested in understanding how these changes may affect their specific situations, consulting with an immigration expert can provide valuable insights and guidance.