Canada has introduced higher wage thresholds for employers hiring foreign workers under the Temporary Foreign Worker Program (TFWP), a move aimed at protecting Canadian jobs while ensuring temporary foreign workers receive wages that better reflect local labour market conditions. The revised wage requirements took effect on July 17, 2026, and apply to employers across every province and territory.
Under the new rules, employers applying through the low-wage stream of the Temporary Foreign Worker Program must now meet higher minimum hourly wage requirements based on the province or territory where the job is located. The federal government updates these wage thresholds annually using the latest labour market data to reflect changes in wages and the cost of living. Applications that fail to meet the revised wage requirements may no longer qualify under the low-wage stream and may instead need to meet the requirements of the high-wage stream.
The changes also bring tighter restrictions for employers in regions where the unemployment rate is 6% or higher. In those areas, businesses are generally not permitted to submit new Labour Market Impact Assessment (LMIA) applications or renew existing ones for low-wage positions, except in sectors or occupations specifically exempted by the federal government. The measure is intended to encourage employers to recruit available Canadian workers before turning to temporary foreign labour.
The Temporary Foreign Worker Program allows Canadian employers to hire foreign nationals when qualified Canadians or permanent residents are unavailable. Before hiring most temporary foreign workers, employers must obtain a positive Labour Market Impact Assessment (LMIA) demonstrating that no suitable Canadian workers can fill the position and that hiring a foreign worker will not negatively affect the Canadian labour market.
Immigration and labour experts say the updated wage thresholds could significantly affect employers in industries such as hospitality, food services, agriculture, retail, and caregiving, where temporary foreign workers make up a large portion of the workforce. Businesses may need to increase wages, adjust hiring plans, or explore alternative immigration pathways to fill labour shortages. Meanwhile, foreign workers could benefit from improved pay and stronger wage protections under the revised rules.
The federal government says the policy is designed to balance Canada’s ongoing labour shortages with the need to protect employment opportunities for Canadians and permanent residents. Employers planning to hire temporary foreign workers are advised to review the updated provincial wage thresholds and ensure their applications comply with the new requirements before submitting an LMIA request.