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New LMIA wage thresholds take effect, raising the cost of hiring temporary foreign workers

Jul 18, 2026
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New LMIA wage thresholds take effect, raising the cost of hiring temporary foreign workers
Employment and Social Development Canada (ESDC) has activated a new set of provincial median-wage thresholds that determine whether a Labour Market Impact Assessment (LMIA) must be filed under the high- or low-wage stream. Although the web page was posted earlier this month, the table—and therefore the legal test—became operative on July 17 2026. Across all provinces, the threshold has risen by 3-7 percent, with Alberta’s cut-off moving from C$36.00 to C$37.50 per hour, British Columbia’s from C$36.60 to C$38.40 and Ontario’s from C$36.00 to C$36.92. Employers who pay below the new benchmark must now use the low-wage stream, triggering stricter caps on the proportion of foreign workers, mandatory transition plans and potential work-permit duration limits. For multinational firms that rely on the Global Talent Stream or on LMIA-supported intra-company transfers, the increases could shift positions into the high-wage category—adding advertising, union-consultation and prevailing-wage compliance obligations. Payroll budgets will also have to absorb the higher prevailing-wage floor, which ESDC calculates as the provincial median plus 20 percent. Immigration counsel are advising companies with pending LMIA applications dated before July 17 to file immediately under the old rates or be prepared to re-benchmark salaries. HR departments should cross-check offer letters, secondment agreements and shadow-payroll setups to avoid inadvertent violations that can trigger inspection, monetary penalties or a company’s placement on the public non-compliance list. Looking ahead, the new thresholds are likely to accelerate the trend toward alternative pathways such as the Recognized Employer Pilot and provincial nomination streams, both of which offer more predictable processing times and, in some cases, exemption from the cap on low-wage positions.
Source: Employment and Social Development Canada

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