Employment and Social Development Canada (ESDC) has raised the wage thresholds for employers and foreign nationals applying under the Temporary Foreign Worker Program (TFWP). These updated thresholds determine eligibility under the program’s high-wage or low-wage streams and impact employers’ ability to obtain the required Labour Market Impact Assessments (LMIAs).
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What’s Changed in the TFWP?
Effective June 27, 2025, ESDC has updated the wage thresholds across nearly all provinces and territories in Canada. These new thresholds apply to all LMIA applications submitted on or after this date.
| Province/Territory | Previous 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% |
High-Wage vs. Low-Wage Streams
A foreign national’s hourly wage determines which TFWP stream applies:
- High-Wage Stream: If the wage offered is equal to or above the updated threshold in the province of employment.
- Low-Wage Stream: If the wage offered is below the threshold.
Employers must apply under the appropriate stream when submitting an LMIA.
Impact of Wage Increases on LMIA Eligibility
The updated thresholds directly affect where and when LMIAs can be submitted under the low-wage stream.
A moratorium on processing low-wage LMIAs is in place for regions with an unemployment rate of 6% or higher, in effect since September 26, 2024. If a job that previously qualified as high-wage now falls below the updated threshold, employers in these areas will no longer be eligible to apply for an LMIA for that position—making it ineligible for the TFWP.
Regions Affected by the Low-Wage LMIA Freeze
(Effective April 4 to July 10, 2025)
| Census Metropolitan Area | Unemployment Rate (%) |
|---|---|
| Alberta | |
| Calgary | 7.8 |
| Edmonton | 7.3 |
| Red Deer | 8.4 |
| British Columbia | |
| Abbotsford-Mission | 6.2 |
| Kamloops | 7.1 |
| Kelowna | 6.7 |
| Nanaimo | 6.0 |
| Vancouver | 6.6 |
| New Brunswick | |
| Fredericton | 6.9 |
| Saint John | 7.7 |
| Newfoundland & Labrador | |
| St. John’s | 7.6 |
| Ontario | |
| Barrie | 7.5 |
| Brantford | 7.2 |
| Guelph | 6.2 |
| Hamilton | 7.3 |
| Kingston | 7.2 |
| Kitchener-Cambridge-Waterloo | 8.5 |
| Oshawa | 8.0 |
| Peterborough | 9.9 |
| St. Catharines-Niagara | 7.7 |
| Toronto | 8.6 |
| Windsor | 9.3 |
| Quebec | |
| Drummondville | 8.0 |
| Montréal | 6.7 |
The moratorium is expected to remain in effect until at least July 10, 2025.
Additional Low-Wage Stream Restrictions
Cap on Low-Wage Positions
- LMIA applications under the low-wage stream will not be processed if low-wage roles exceed 10% of the total workforce at a work location.
- For certain sectors, the cap increases to 20%, including:
- NAICS 23 – Construction
- NAICS 311 – Food manufacturing
- NAICS 622 – Hospitals
- NAICS 623 – Nursing and residential care facilities
Specific In-Home Caregiver Roles (under review for future policy changes)
- NOC 31301 – Registered nurse or psychiatric nurse
- NOC 32101 – Licensed practical nurse
- NOC 44100 – Home childcare providers
- NOC 44101 – Home support workers, personal care attendants, etc.
ESDC and Immigration, Refugees and Citizenship Canada (IRCC) are currently reviewing these roles for potential inclusion in upcoming reforms.
About the Temporary Foreign Worker Program
The TFWP is a collaborative initiative between IRCC and ESDC. It enables Canadian employers to hire foreign workers when no suitable Canadian citizen or permanent resident is available.
The program has faced increasing scrutiny in 2024 due to:
- Allegations of worker exploitation and wage suppression
- Concerns over the program’s role in growing Canada’s temporary resident population
- Pressure on social services and housing affordability
Recent Government Measures to Tighten the TFWP:
- Reducing LMIA validity from 12 months to 6 months
- Limiting duration of low-wage stream employment
- Setting annual targets for net new TFWP admissions
- Ending job-supported work permit applications for visitors already in Canada
