Canada has increased the wage cut-offs used in the low-wage stream of the Temporary Foreign Worker Program. In many regions with unemployment of 6% or more, employers can no longer start or renew certain low-paying TFWP hires. The change affects LMIA strategy, hiring plans, and foreign workers who may now need to consider other Canadian immigration pathways.
Canada raises TFWP wage thresholds across the country
The federal government has updated the hourly wage thresholds used under the low-wage stream of the Temporary Foreign Worker Program in Canada. These new figures took effect on July 17, 2026, and matter most for employers seeking Labour Market Impact Assessments, as well as foreign nationals relying on employer-specific work permits.
Under this system, a job is generally treated as “low-wage” if the pay falls below a set provincial or territorial threshold. That threshold is now based on 120% of the median wage in each province or territory. In practical terms, this means some jobs that may previously have qualified under one stream could now be assessed differently, and some offers may no longer be eligible in certain locations.
Here is a snapshot of the updated thresholds compared with the previous rates:
| Province or territory | New threshold | Previous threshold |
|---|---|---|
| Alberta | $37.50 | $36.00 |
| British Columbia | $38.40 | $36.60 |
| Manitoba | $31.33 | $30.16 |
| New Brunswick | $31.73 | $30.00 |
| Newfoundland and Labrador | $33.60 | $32.40 |
| Nova Scotia | $31.96 | $30.00 |
| Nunavut | $45.00 | $42.00 |
| Ontario | $36.92 | $36.00 |
| Quebec | $36.00 | $34.62 |
| Saskatchewan | $34.62 | $33.60 |
| Yukon | $45.60 | $44.40 |
Northwest Territories remained unchanged at $48.00. For employers, these wage figures are not just administrative details. They can determine whether an LMIA application fits the low-wage stream, the high-wage stream, or may be blocked entirely in some regions. If you are trying to understand Canadian work permit rules or plan an employer-supported move, this update is important.
Where low-wage TFWP hiring is now restricted
The biggest impact is in regions with unemployment at or above 6%. In those areas, employers cannot begin new low-wage TFWP hiring or renew existing work permits for roles that pay below the new threshold. This restriction applies in a number of census metropolitan areas across Canada.
Examples of affected regions
The list includes major urban and regional labour markets such as Montréal, Ottawa-Gatineau, Toronto, Hamilton, Kitchener-Cambridge-Waterloo, London, Windsor, Calgary, Edmonton, Vancouver, Kelowna, and several others. It also includes places like St. John’s, Moncton, Oshawa, Barrie, Saskatoon, Kamloops, Chilliwack, Abbotsford-Mission, and Nanaimo.
Because unemployment rates can change, this is not a one-time issue. Employers and workers should monitor current government updates before filing an LMIA or applying to renew a permit. A job offer that seems workable one month may become restricted later if the local unemployment rate remains high or rises further.
What this means for workers
For foreign nationals already in Canada, this could create uncertainty if their employer wants to extend a permit for a lower-paid role in an affected region. In some cases, workers may need to look at other immigration strategies instead of depending on the same TFWP position. That could include moving to a different stream, changing employers, or exploring permanent residence options.
This is one reason many workers start reviewing longer-term plans early, including Express Entry immigration pathways, provincial nominations, or region-based programmes. If a person has skilled work experience, language results from IELTS, CELPIP, TEF, or TCF, and an Educational Credential Assessment where needed, they may have more options than they first realize.
Low-wage stream rules employers still need to follow
Outside the restricted high-unemployment regions, employers may still hire under the low-wage stream, but the rules remain strict. The government continues to place extra conditions on these applications compared with higher-paid roles.
Main compliance requirements
- Most employers are limited to a 10% cap on the share of workers hired through the TFWP at a work location.
- Some sectors, including certain construction and food manufacturing roles, may benefit from a 20% cap.
- A temporary measure has allowed some rural employers in participating provinces to use a 15% cap during a limited period.
- Job advertising must usually run for at least eight weeks within the last three months, which is longer than the standard high-wage requirement.
- Recruitment efforts must include underrepresented groups, including youth and other targeted communities.
- Employers must invite Job Bank candidates with lower matching scores than would normally apply under the high-wage stream.
In addition, employers hiring through the low-wage stream are expected to help with suitable and affordable housing and pay round-trip transportation costs for the worker. These rules sit alongside broader employer compliance obligations in Canada, and mistakes can lead to refusals or penalties.
For businesses, this means planning is essential. A stronger wage offer may sometimes open a more flexible route than trying to fit within low-wage restrictions. For workers, it means the details of the job offer matter just as much as the job title itself.
How this fits into Canada’s wider immigration and labour strategy
The Temporary Foreign Worker Program exists to help employers fill jobs when qualified Canadian citizens or permanent residents are not available. In most cases, this requires a positive or neutral LMIA, after which the foreign worker may apply for an employer-specific permit. If you want a clearer picture of this process, it helps to review LMIA-based work permit pathways and the rules around the LMIA process in Canada.
Why Ottawa is tightening the programme
Over the past two years, the federal government has been reducing reliance on lower-paid temporary labour in regions where local unemployment is already elevated. Earlier changes included a freeze on some low-wage LMIA processing, higher wage benchmarks, lower workforce caps, and annual targets for temporary resident admissions.
The government has also pointed to falling admission numbers. TFWP entries in 2026 were reported to be down sharply compared with 2024, and admissions under the International Mobility Program also declined significantly. Unlike the TFWP, the International Mobility Program often does not require an LMIA because it is designed around broader economic, social, or reciprocal benefits. Workers comparing options may wish to learn more about the International Mobility Program if they may qualify under a different category.
Alternative immigration pathways may become more important
For many foreign workers, especially those in lower-paid or vulnerable roles, this policy shift is a reminder not to depend on a single temporary status plan. Some may qualify for permanent residence through a Provincial Nominee Program, while others may fit federal programmes such as the Canadian Experience Class or the Federal Skilled Worker stream. Rural and regional options can also matter, including the Atlantic Immigration Program for eligible candidates and employers in Atlantic Canada.
Every pathway has its own requirements. Language test scores, work history, NOC classification, proof of funds in some cases, and credential recognition can all affect eligibility. That is why many applicants choose to explore their Canadian immigration options early rather than wait until a work permit problem appears.
Immigration rules, wage thresholds, and LMIA requirements can change quickly, so readers should always confirm the latest information with IRCC and other official government sources or speak with a licensed immigration consultant before making decisions. EverNorth Immigration is here to help with experienced, professional support at every stage of your move to Canada, and if you would like tailored guidance, you can book your free immigration assessment.
