New Canada LMIA Work Permit Wage Increase Effective June 27
As part of its ongoing efforts to ensure fair labor standards and protect the rights of temporary foreign workers, the Canadian government has introduced significant changes to the wage requirements for work permits under the Temporary Foreign Worker Program (TFWP). Effective June 27, 2025, employers seeking to hire temporary foreign workers through the Labour Market Impact Assessment (LMIA) stream must meet new, higher minimum wage thresholds.
Understanding the Wage Increase
The updated wage requirements apply to both high-wage and low-wage streams of the TFWP. These changes aim to align the compensation of temporary foreign workers with that of Canadian citizens and permanent residents in similar roles and locations. By doing so, the government seeks to prevent wage undercutting and ensure fair competition in the labor market.
Regional Variations in Wage Thresholds
The new wage thresholds vary by province and territory, reflecting local labor market conditions. For example:
- Alberta’s minimum wage threshold has increased from $35.40 to $36.00 per hour.
- British Columbia’s wage threshold has risen from $34.62 to $36.60 per hour.
- Manitoba’s threshold has been slightly adjusted from $30.00 to $30.16 per hour.
- New Brunswick’s wage threshold has also been updated, with specific details available through provincial wage tables.
Employers must consult these updated regional wage tables to determine the applicable minimum wage for their specific location and occupation.
How Wages Are Determined
Under the TFWP, the wage offered to a temporary foreign worker must be at least the highest of the following:
- The median wage for the occupation and location, as published on the Government of Canada’s Job Bank.
- The wage paid to current employees in the same job, at the same work location, with equivalent skills and experience.
Employers can use the Job Bank to find the median wage for specific occupations by searching with a job title or National Occupational Classification (NOC) code. If local data is unavailable, provincial or national median wages should be used.
Guaranteed Wages and Exclusions
Only guaranteed base wages are considered when determining compliance with the wage requirements. The following are excluded from the calculation:
- Overtime pay
- Tips
- Benefits
- Profit sharing
- Bonuses
- Commissions
- Other forms of compensation
In unionized workplaces, employers must adhere to the wage rates and compensation outlined in the collective agreement.
High-Wage vs. Low-Wage Positions
The TFWP categorizes jobs into high-wage and low-wage streams based on the offered wage relative to the provincial or territorial median. If the wage offered is at or above the median, the high-wage stream applies. If the wage is below the median, the low-wage stream is used.
Employers hiring for low-wage positions must also meet additional requirements, such as limits on the number of low-wage temporary foreign workers they can employ. These measures are in place to ensure that the hiring of temporary foreign workers does not negatively impact the Canadian labor market.
Accessing Updated Wage Information
Employers and temporary foreign workers can access the most current wage thresholds through several official channels. The Government of Canada provides detailed resources to help navigate these changes effectively.
- Job Bank Search: The primary method to find wage information is through the Government of Canada’s Job Bank. By entering a job title or National Occupational Classification (NOC) code, users can retrieve the median wage for specific occupations in different regions.
- Provincial and Territorial Wage Tables: Each province and territory publishes updated wage tables reflecting the new thresholds. These documents are essential for employers to determine the exact minimum wage requirements for their region.
- Federal Government Updates: Regular updates and communications from the federal government regarding TFWP requirements are available. Employers are advised to monitor these channels to stay informed about any changes or clarifications.
Key Takeaways
The implementation of the new wage requirements brings several important considerations to the forefront:
- The minimum wage thresholds for work permits under the TFWP have been increased as of June 27, 2025.
- Wages must now align with or exceed the updated regional and provincial median wage rates.
- Only guaranteed base wages are factored into compliance calculations; additional forms of compensation are excluded.
- Both high-wage and low-wage positions are subject to the updated requirements, with distinct streams for each category.
- Employers must adhere strictly to these changes to avoid application refusals or penalties, ensuring compliance with all TFWP regulations.
These adjustments underscore Canada’s dedication to upholding equitable labor standards and safeguarding the rights of temporary foreign workers across all industries.
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Conclusion
The introduction of the new wage requirements for the Temporary Foreign Worker Program (TFWP) marks a significant step forward in Canada’s commitment to fair labor practices. By aligning the wages of temporary foreign workers with those of Canadian citizens and permanent residents, the government ensures equitable competition and protects the rights of all workers. Employers must stay informed about these changes and adhere to the updated wage thresholds to maintain compliance and avoid penalties. These adjustments not only benefit temporary foreign workers but also strengthen Canada’s labor market by promoting fair wages and transparent hiring practices.
Frequently Asked Questions (FAQ)
- Why were the wage requirements increased?
The wage requirements were increased to ensure fair labor standards and protect the rights of temporary foreign workers by aligning their wages with those of Canadian citizens and permanent residents.
- How can I find the updated wage thresholds for my province or territory?
Employers can access updated wage information through the Government of Canada’s Job Bank, provincial or territorial wage tables, and federal government updates.
- What is the difference between high-wage and low-wage streams?
High-wage positions offer wages at or above the provincial or territorial median, while low-wage positions offer below the median. Each stream has distinct requirements and regulations.
- What happens if an employer does not meet the new wage requirements?
Employers who fail to meet the new wage requirements may face application refusals, penalties, or other enforcement measures under the TFWP.
- Do these changes affect existing work permits?
Employers with existing work permits must ensure compliance with the new wage requirements when renewing or applying for new permits after June 27, 2025.
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