Effective today, July 17 2026, Employment and Social Development Canada (ESDC) has increased the hourly wage thresholds that determine whether a Labour Market Impact Assessment (LMIA) application falls under the high-wage or low-wage stream of the Temporary Foreign Worker Program (TFWP). The new figures, published overnight on ESDC’s LMIA Online portal and confirmed by an IRCC spokesperson, push the threshold to 120 % of each province’s median hourly wage. For example, employers in Ontario must now offer at least CAD $36.92 per hour (up from $36.00) to classify a position as high-wage, while thresholds in British Columbia and Alberta jump to $38.40 and $37.50 respectively. Wages below the provincial line force employers into the low-wage stream, which carries stricter recruitment rules, caps on the share of temporary workers (generally 10 %), and new eight-week advertising requirements. The adjustment is part of a wider TFWP tightening that began in 2024, when Ottawa introduced a moratorium on low-wage LMIAs in any census metropolitan area (CMA) with unemployment at 6 % or higher. Those restrictions remain in force and currently affect 27 CMAs, from Vancouver and Calgary to Montréal and Halifax. The government’s goal is to ensure temporary hiring does not undercut local wages while still allowing critical shortages to be filled; critics counter that the higher bar will exacerbate labour shortages in sectors such as hospitality, agriculture and long-haul trucking. For multinational employers, the most immediate impact is budgeting. Any LMIA application submitted today or later must meet the new wage floor. Filings already in the queue will be assessed against the previous (June 2025–July 16 2026) thresholds. Companies with national mobility programs should therefore review open requisitions and adjust global assignment cost projections—particularly for postings in Ontario, British Columbia and Québec, where the increases are steepest. HR teams should also revisit offer letters and secondment agreements for existing foreign workers whose permits will need renewal in the next 12 months. If a worker’s pay now falls below the new threshold, the role is re-classified as low-wage, triggering additional compliance duties such as proof of suitable, affordable housing and round-trip airfare. Failure to comply can lead to LMIA refusals, employer blacklisting and monetary penalties under the TFWP’s administrative monetary penalty regime. Practically, business-traveling executives must plan for longer lead times. Because low-wage LMIAs require eight weeks of advertising and carry a 10 % cap per worksite, the window from requisition to work-permit issuance can stretch beyond six months. Where possible, employers should explore exemption routes under the International Mobility Program (IMP)—for example, intra-company transfers (C12) or trade-agreement professionals (CUSMA/T-15)—to bypass LMIA requirements altogether.
Source: CIC News
