In a move that could reshape how Canadian employers hire foreign labour, Employment and Social Development Canada (ESDC) has increased the wage thresholds for the Temporary Foreign Worker Program (TFWP), effective June 27, 2025.
These wage thresholds determine whether a job offer falls under the high-wage or low-wage stream of the TFWP, a classification that affects an employer’s ability to obtain a Labour Market Impact Assessment (LMIA), a mandatory step in hiring foreign workers.
Why the Wage Thresholds Matter
The TFWP is designed to allow employers to fill job vacancies when qualified Canadians or permanent residents aren’t available. However, which stream an employer applies under high-wage or low-wage depends on whether the offered wage meets or exceeds the median wage in that province or territory.
If a wage offer falls below the new threshold, it is classified as low-wage, subject to stricter limits, including caps and regional hiring freezes.
Updated Median Wage Thresholds by Province
Below is a summary of the old and new wage thresholds across Canada:
| Province/Territory | Old Threshold (CAD) | New Threshold (CAD) | % Increase |
| Alberta | 35.40 | 36.00 | 1.69% |
| British Columbia | 34.62 | 36.60 | 5.71% |
| Manitoba | 30.00 | 30.16 | 0.53% |
| New Brunswick | 28.85 | 30.00 | 3.98% |
| Newfoundland & Labrador | 31.20 | 32.40 | 3.85% |
| Northwest Territories | 47.09 | 48.00 | 1.93% |
| Nova Scotia | 28.80 | 30.00 | 4.17% |
| Nunavut | 42.00 | 42.00 | 0.00% |
| Ontario | 34.07 | 36.00 | 5.66% |
| Prince Edward Island | 28.80 | 30.00 | 4.17% |
| Quebec | 32.96 | 34.62 | 5.04% |
| Saskatchewan | 32.40 | 33.60 | 3.70% |
| Yukon | 43.20 | 44.40 | 2.78% |
What This Means for Employers
Employers who were previously offering wages just above the old threshold may now find their offers classified under the low-wage stream, bringing new challenges.
This is especially important because low-wage LMIA applications are currently restricted in regions where the unemployment rate exceeds 6%. Major cities like Toronto (8.6%), Calgary (7.8%), and Vancouver (6.6%) are affected, meaning employers there may no longer be eligible to hire for certain roles under the TFWP low-wage stream.
Tighter Controls on Low-Wage Hiring
Apart from wage increases, Ottawa also enforces strict caps on low-wage hiring:
- Most workplaces can’t have more than 10% of staff in low-wage TFWP roles.
- Certain sectors, like construction, food manufacturing, and long-term care, are allowed up to 20%.
A Broader Reform Effort
The federal government has been tightening the TFWP since 2024 in response to rising concerns over exploitation, housing pressure, and misuse of the program. Other recent changes include:
- Shortening LMIA validity from 12 months to 6 months;
- Limiting employment duration for low-wage foreign workers;
- Eliminating job-supported permits for visitors inside Canada.
As labour policies evolve, employers should review their hiring strategies carefully because now, paying a competitive wage isn’t just good practice, it’s federal policy.
