Canada has rolled out a significant update in its Labour Market Impact Assessment (LMIA) wage requirements under the Temporary Foreign Worker Program (TFWP), effective November 8, 2024. Employers hiring through LMIA in all provinces and territories must now meet higher wage thresholds. This 20% wage increase impacts whether a job offer qualifies under the high-wage or low-wage stream of the TFWP, aiming to balance fair pay for foreign workers with the evolving economic landscape in Canada.
The updated wage structure reflects Canada's ongoing commitment to a fair and competitive labor market, aligning compensation for foreign workers with rising living costs and inflation. These new wage thresholds will considerably affect employers across different regions and sectors as they adapt their recruitment and budgeting strategies.
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New LMIA Wage Requirements: an Overview
The LMIA program allows Canadian employers to hire temporary foreign workers if no suitable Canadian candidates are available. To ensure the jobs provide fair wages, employers must adhere to high-wage or low-wage thresholds, as defined for each province and territory.
Key Points on the New-Wage Update:
- High-Wage Stream:
- Low-Wage Stream:
Applicable for jobs with wages at or above the provincial/territorial threshold.
For jobs with wages below the threshold, with additional requirements for hiring and transition planning.
Effective November 8, the LMIA wage requirements have increased by 20% across all regions. Here’s how the new wage thresholds compare:
| Province/Territory | Old Wage (Pre-Nov 8, 2024) | New Wage (Effective Nov 8, 2024) |
|---|---|---|
| Alberta | $29.50 | $35.40 |
| British Columbia | $28.85 | $34.62 |
| Manitoba | $25.00 | $30.00 |
| New Brunswick | $24.04 | $28.85 |
| Newfoundland and Labrador | $26.00 | $31.20 |
| Northwest Territories | $39.24 | $47.09 |
| Nova Scotia | $24.00 | $28.80 |
| Nunavut | $35.00 | $42.00 |
| Ontario | $28.39 | $34.07 |
| Prince Edward Island | $24.00 | $28.80 |
| Quebec | $27.47 | $32.96 |
| Saskatchewan | $27.00 | $32.40 |
| Yukon | $36.00 | $43.20 |
Regional Wage Insights: Impact on Employers and Workers
Each province has experienced notable changes in wage thresholds, influencing local industries and hiring practices.
- Alberta:
- British Columbia:
- Ontario:
- Quebec:
- Saskatchewan & Manitoba:
Increased from $29.50 to $35.40, affecting sectors like energy, technology, and construction. Employers may need to reassess wages to remain competitive.
New threshold at $34.62, up from $28.85. Rising costs of living in BC mean higher wages for foreign workers, particularly in the tech and healthcare sectors.
Threshold raised from $28.39 to $34.07, pushing companies in Toronto, Ottawa, and Hamilton to offer competitive wages in IT, healthcare, and finance.
Updated to $32.96 from $27.47, with implications for industries like manufacturing and hospitality, intensifying talent competition.
Raised thresholds to $32.40 and $30.00, respectively, requiring adjustments in sectors like agriculture and natural resources.
How the Wage Increases Affect Employers and Foreign Workers
Impact on Employers:
- Budget Adjustments:
- Compliance with High-Wage Stream Requirements:
- Sector Challenges:
Companies hiring through the TFWP must now budget for higher wages.
Employers offering new high-wage stream roles must align with LMIA standards, including transition planning for Canadian hires.
Industries with high foreign worker demand, such as agriculture, hospitality, and construction, may need to adapt to the increased wage requirements to retain competitive positioning.
Impact on Foreign Workers:
- Increased Earning Potential:
- Better Eligibility for Permanent Residency:
Foreign workers in Canada will benefit from higher wages, aligning their compensation with Canadian employees.
Earning higher wages may support foreign workers in qualifying for Canada’s economic immigration programs.
What’s Next for Employers and TFWs
With the updated LMIA wage thresholds, Canada reinforces its focus on competitive wages, creating a more sustainable labor market while protecting job opportunities for Canadian citizens. For foreign workers, these changes mean fairer compensation and improved integration opportunities.
How Visa Solutions 4u Can Help
Navigating the latest LMIA updates and wage requirements can be complex. Visa Solutions 4u specializes in guiding both employers and foreign workers through Canada’s immigration process. From understanding high-wage and low-wage classifications to assisting with LMIA applications, Visa Solutions 4u offers a streamlined, supportive experience to make sure you’re on the right path. Whether you’re an employer needing compliance assistance or a foreign worker seeking opportunities in Canada, Visa Solutions 4u is here to help make your Canadian journey smooth and successful.
