Canada raises minimum salary requirements for the Temporary Foreign Worker Program
The federal government of Canada has announced significant changes to the Temporary Foreign Worker Program (TFWP), effective from 2025. The changes aim to curb the use of the TFWP among employers and address concerns related to worker abuses, wage suppression, and pressure on social services and housing affordability.
The TFWP is an employer-led work permit program, administered jointly between Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC). It facilitates the hiring of foreign nationals when a Canadian permanent resident or citizen is not available to fill the position.
One of the key changes is the introduction of new LMIA requirements. In certain 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. This rule is in effect in various Census Metropolitan Areas (CMAs), including Alberta (Calgary, Edmonton, and Red Deer), British Columbia (Abbotsford-Mission, Kamloops, Kelowna, Nanaimo, and Vancouver), New Brunswick (Fredericton and Saint John), Newfoundland and Labrador (St. John's), Ontario (Barrie, Brantford, Guelph, Hamilton, Kingston, Kitchener-Cambridge-Waterloo, Oshawa, Peterborough, St. Catharines-Niagara, Toronto, and Windsor), and Quebec (Drummondville and Montreal).
The moratorium on low-wage LMIAs is expected to be in place until at least July 10, 2025. Low-wage LMIA applications will not be processed if low-wage positions exceed 10% of the total workforce at a specific work location, with some exceptions in certain sectors and occupations. There is also a moratorium on the processing of LMIAs under the low-wage stream of the TFWP in regions with an unemployment rate of 6% or higher, which first took effect on September 26, 2024.
The wage of a foreign national determines whether they are eligible for the high-wage or low-wage stream of the TFWP. If their wage is at or above the wage threshold listed for their province, they are eligible for the high-wage stream. If their wage is below the wage threshold, they are eligible for the low-wage stream. As of June 27, 2025, ESDC has increased the wage thresholds for the TFWP in nearly all Canadian provinces. The new wage thresholds will be in effect for all Labor Market Impact Assessments (LMIA) applications received on or after June 27, 2025.
The TFWP came under increased scrutiny in 2024 for alleged worker abuses and wage suppression by some employers, as well as for contributing to a large temporary residency population and pressure on social services and housing affordability. The federal government instituted a number of measures and rollbacks to address these concerns, including the new LMIA requirements and the moratoriums on low-wage LMIAs.
For those seeking further information on the impactful changes made to the TFWP, more details can be found here. The Cohen Immigration Law Firm also offers a free work permit consultation for those considering applying for a work permit under the TFWP.
