Canada has introduced new wage thresholds under the Temporary Foreign Worker Program (TFWP), effective July 17, 2026. The updated thresholds affect employers applying for a Labour Market Impact Assessment (LMIA) and may also influence foreign workers seeking employer-specific work permits.
The changes are part of the federal government’s ongoing efforts to better align wages with regional labour market conditions while reducing reliance on the low-wage stream of the TFWP.
What Changed on July 17, 2026?
Employment and Social Development Canada (ESDC) has updated the hourly wage thresholds used to determine whether an LMIA application falls under the high-wage or low-wage stream of the Temporary Foreign Worker Program.
The new thresholds apply to LMIA applications received on or after July 17, 2026.
New Wage Thresholds by Province and Territory
The updated hourly wage thresholds are:
| Province / Territory | New Threshold (Effective July 17, 2026) |
|---|---|
| Alberta | $37.50/hour |
| British Columbia | $38.40/hour |
| Manitoba | $31.33/hour |
| New Brunswick | $31.73/hour |
| Newfoundland and Labrador | $33.60/hour |
| Northwest Territories | $48.00/hour |
| Nova Scotia | $31.96/hour |
| Nunavut | $45.00/hour |
| Ontario | $36.92/hour |
| Prince Edward Island | $31.20/hour |
| Quebec | $36.00/hour |
| Saskatchewan | $34.62/hour |
| Yukon | $45.60/hour |
These thresholds are generally set at 120% of the provincial or territorial median hourly wage, a policy introduced as part of earlier TFWP reforms.
Why Are These Thresholds Important?
The wage offered determines whether an employer must apply under the high-wage or low-wage stream of the TFWP.
This distinction is important because the two streams have different requirements.
For example, employers hiring under the low-wage stream are generally subject to:
- Limits on the proportion of temporary foreign workers they can employ.
- Longer recruitment and advertising requirements.
- Additional obligations related to housing and transportation for workers.
- More restrictive program conditions overall.
Restrictions in High-Unemployment Regions Continue
The wage threshold increase does not remove existing restrictions affecting certain regions.
In census metropolitan areas where the unemployment rate is 6% or higher, employers generally cannot submit new low-wage LMIA applications or renew existing low-wage positions under the TFWP.
As of the July 17 update, this restriction applies to several metropolitan areas, including:
- Toronto
- Hamilton
- London
- Windsor
- Ottawa–Gatineau
- Montréal
- Calgary
- Edmonton
- Vancouver
- Kelowna
- Abbotsford–Mission
- Chilliwack
- Saskatoon
and other regions meeting the unemployment threshold.
What Does This Mean for Employers?
Employers planning to hire foreign workers should:
- Review the updated wage threshold for their province or territory.
- Confirm whether the position falls under the high-wage or low-wage stream.
- Verify whether their location is affected by unemployment-related restrictions.
- Ensure job offers meet all applicable wage and program requirements before submitting an LMIA application.
Offering wages below the new threshold could require the employer to apply under the low-wage stream—or, in some regions, prevent a new low-wage LMIA application altogether.
What Does This Mean for Foreign Workers?
For foreign workers, the changes may affect:
- The type of LMIA an employer can apply for.
- The availability of jobs under the TFWP.
- Processing strategy for employer-specific work permits.
Applicants should remember that a work permit is tied to the employer’s approved LMIA (where required). If an employer cannot meet the updated wage threshold or is affected by regional restrictions, recruitment plans may need to change.
Will Existing Work Permits Be Affected?
The new wage thresholds apply to new LMIA applications submitted on or after July 17, 2026.
Workers who already hold valid work permits are not automatically affected by the wage threshold update. However, employers seeking to renew an LMIA-supported position must comply with the rules in effect at the time of the new application.
Practical Advice for Applicants
If you are planning to work in Canada through the Temporary Foreign Worker Program:
✔ Confirm that your employer is aware of the updated wage thresholds.
✔ Ensure your job offer reflects the correct wage requirements.
✔ Discuss renewal plans early if your current work permit is approaching expiry.
✔ Explore alternative pathways, such as LMIA-exempt work permits or provincial nominee programs, if the TFWP is not the best option.
Final Thoughts
The July 17, 2026 wage threshold update represents another important adjustment to Canada’s Temporary Foreign Worker Program.
While the changes are primarily directed at employers, they also have a direct impact on foreign workers by influencing which positions qualify under the TFWP and how employers structure their hiring.
Anyone planning to apply for an LMIA-supported work permit should review the updated wage requirements carefully and ensure that both the job offer and LMIA application comply with the new rules before proceeding.
