Canada Raises TFWP Wage Thresholds Across Provinces

Canada raises TFWP wage thresholds across provinces, i.e., the federal government has increased the hourly wage requirements under the low-wage stream of the Temporary Foreign Worker Program (TFWP). The updated wage thresholds came into effect on July 17, 2026.

Under the revised rules, employers located in regions with an unemployment rate of 6% or higher cannot apply for new LMIAs, i.e.,  Labour Market Impact Assessments or renew existing work permits for positions that pay below the new wage threshold set for their province or territory.

The new wage thresholds are based on 120% of the median hourly wage in each province and territory.

Updated Wage Thresholds By Province And Territory

Regions Currently Affected By The Low-Wage Hiring Restriction

As of July 17, employers located in census metropolitan areas with an unemployment rate of 6% or higher cannot submit new LMIA applications or renew work permits for jobs that pay below the updated wage threshold.

Employers located outside these regions may still hire workers under the low-wage stream, provided they meet all program requirements.

What Rules Apply Under The Low-Wage Stream?

Employers hiring through the low-wage stream of the TFWP must continue to follow several additional requirements.

• A maximum of 10% of workers at a work location can be hired through the TFWP.
• Some industries, including construction and food manufacturing, are allowed a 20% cap.
• Under a temporary measure running from April 1, 2026, to March 31, 2027, rural employers in participating provinces may hire up to 15% of their workforce through the TFWP.
• Employers must advertise the job for at least eight weeks during the previous three months.
• Recruitment efforts must include underrepresented groups, such as Indigenous people and persons with disabilities.
• Employers must also make targeted recruitment efforts for youth between 15 and 30 years of age.
• Invitations must be sent to all Job Bank candidates with a two-star match or higher.

In addition, employers must provide suitable and affordable housing for foreign workers and cover their round-trip transportation expenses.

How Does The Temporary Foreign Worker Program Work?

The Temporary Foreign Worker Program allows Canadian employers to hire foreign workers when qualified Canadian citizens or permanent residents are not available to fill vacant positions.

Before hiring through the TFWP, employers must receive a positive or neutral Labour Market Impact Assessment (LMIA). A work permit issued under this program only allows the foreign worker to work for the employer and position listed on the permit.

Whether hiring under the low-wage or high-wage stream, employers must always pay whichever amount is higher: the regional median wage for that occupation or the wage paid to Canadian employees doing the same job at the same workplace.

Federal Government Continues To Tighten TFWP Rules

The Temporary Foreign Worker Program has received increased attention in recent years, with concerns that it could affect wages and employment opportunities for Canadian workers.

In response, the federal government introduced several important changes in 2024:

• Suspended new low-wage LMIAs in regions where unemployment exceeds 6%.
• Increased the low-wage stream threshold to 120% of the provincial or territorial median wage.
• Reduced the workforce limit for most employers under the low-wage stream from 20% to 10%.
• Introduced annual admission targets for temporary residents, including TFWP workers.

Government data also shows that TFWP admissions during the first four months of 2026 declined by more than 50% compared with the same period in 2024.

The federal government plans to admit 60,000 Temporary Foreign Worker Program work permit holders during 2026.

Admissions under the International Mobility Program (IMP) have also declined significantly. The 2026 target for IMP work permit holders is 170,000, while admissions have fallen by 69% compared with 2024.

Unlike the TFWP, the International Mobility Program does not require an LMIA because it supports broader economic, social, and cultural objectives for Canada.

The latest wage threshold increase reflects the federal government’s ongoing efforts to balance employer labour needs with opportunities for Canadian workers while ensuring that employers hiring through the TFWP continue to meet updated wage and employment requirements.

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