Canada Tightens Temporary Foreign Worker Rules with New Wage Hikes and LMIA Restrictions
The Canadian government has introduced a new round of major updates to the Temporary Foreign Worker Program (TFWP), including increased wage thresholds and stricter rules on when and where employers can hire low-wage foreign workers.
The changes, announced by Employment and Social Development Canada (ESDC), apply to Labour Market Impact Assessment (LMIA) applications submitted on or after June 27, 2025. They are part of an ongoing federal effort to reduce the reliance on temporary foreign workers amid rising concerns about job market saturation, wage suppression, and pressure on housing and public services.
New Wage Thresholds Across Provinces
The government has increased the median hourly wage thresholds that determine whether a TFWP application falls under the high-wage or low-wage stream. The threshold varies by province or territory.
| Province/Territory | Old Threshold ($) | New Threshold ($) | % Increase |
|---|---|---|---|
| Ontario | 34.07 | 36.00 | 5.66% |
| British Columbia | 34.62 | 36.60 | 5.71% |
| Quebec | 32.96 | 34.62 | 5.04% |
| Alberta | 35.40 | 36.00 | 1.69% |
| Manitoba | 30.00 | 30.16 | 0.53% |
| Nova Scotia | 28.80 | 30.00 | 4.17% |
| Saskatchewan | 32.40 | 33.60 | 3.70% |
| Prince Edward Island | 28.80 | 30.00 | 4.17% |
| New Brunswick | 28.85 | 30.00 | 3.98% |
| Newfoundland & Labrador | 31.20 | 32.40 | 3.85% |
| Northwest Territories | 47.09 | 48.00 | 1.93% |
| Yukon | 43.20 | 44.40 | 2.78% |
| Nunavut | 42.00 | 42.00 | 0.00% |
If a foreign national’s offered wage is equal to or higher than the threshold in their province of employment, the employer must apply through the high-wage stream. If it’s below, it falls under the low-wage stream, which now faces serious limitations.
Expanded LMIA Freeze for Low-Wage Positions
A critical consequence of the new wage hike is that more jobs may now fall below the new threshold, especially in provinces like Ontario and BC. This means more employers may be pushed into the low-wage stream, which is subject to severe hiring restrictions in areas with 6% or higher unemployment.
The following cities and regions are under a moratorium on low-wage LMIAs from April 4 to July 10, 2025:
- Ontario: Toronto (8.6%), Windsor (9.3%), Kitchener-Waterloo (8.5%), and more
- Alberta: Calgary (7.8%), Edmonton (7.3%)
- BC: Vancouver (6.6%), Kamloops (7.1%), Kelowna (6.7%)
- Quebec: Montréal (6.7%), Drummondville (8.0%)
- New Brunswick: Fredericton (6.9%), Saint John (7.7%)
If a job previously qualified as high-wage but no longer meets the updated wage threshold, it may no longer be eligible for a work permit under the TFWP in these high-unemployment areas.
Stricter Caps and Sector-Specific LMIA Limits
In addition to regional restrictions, ESDC is enforcing tighter caps on low-wage hires:
- General cap: No more than 10% of a worksite’s total workforce can be low-wage foreign workers.
- Higher cap (20%) for select essential sectors:
- Construction (NAICS 23)
- Food Manufacturing (NAICS 311)
- Hospitals (NAICS 622)
- Nursing & Residential Care Facilities (NAICS 623)
Moreover, stricter oversight now applies to in-home caregivers and healthcare workers, including:
- Registered nurses (NOC 31301)
- Licensed practical nurses (NOC 32101)
- Home childcare providers (NOC 44100)
- Personal care attendants (NOC 44101)
What Does This Mean for Employers and Foreign Workers?
These changes mean employers must re-evaluate wage offers and recruitment plans. Roles that previously qualified under high-wage thresholds may now fall under low-wage rules, making it impossible to obtain LMIAs in many cities.
Employers in affected sectors or regions must either raise wages to meet new standards or explore alternative streams, such as Provincial Nominee Programs (PNPs) or international mobility programs that don’t require LMIAs.
Why These Changes?
The updates follow ongoing scrutiny of the TFWP for:
- Allegations of worker mistreatment
- Wage suppression in local labor markets
- Excessive reliance on temporary residents
The government has responded with several recent reforms, including:
- Shortening LMIA validity from 12 months to 6 months
- Reducing duration of employment under the low-wage stream
- Setting annual intake targets for the TFWP
- Removing pathways for visitors to apply for employer-backed work permits under the TFWP
Conclusion: A More Restrictive TFWP Era Begins
With increased wage thresholds, stricter LMIA eligibility, and tighter sector-based rules, Canada’s Temporary Foreign Worker Program has entered a more controlled phase. While these changes aim to protect Canadian workers and ensure fair treatment of foreign workers, they also raise new challenges for employers and immigrants alike.
Careful planning and strong legal or immigration consulting support will now be essential for navigating Canada’s changing labor and immigration landscape.
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
