Canada hikes temp worker wages by 20%: Know latest rates across provinces

Canada has announced a 20% increase in wage thresholds for its Labour Market Impact Assessment (LMIA) program, effective November 8, 2024. This change means that Indian and other foreign workers under the Temporary Foreign Worker Program (TFWP) will now need to secure job offers meeting higher wage standards, increasing their earning potential and possibly easing their path to permanent residency in Canada.

 

Why the wage increase matters for foreign workers

 

The LMIA, a necessary step for employers hiring foreign talent, uses wage thresholds to classify jobs into high-wage and low-wage streams. The revised wage requirements reflect a substantial increase across all Canadian provinces and territories, affecting recruitment processes and wage expectations for temporary foreign workers.

 

 

Updated wage thresholds by province and territory:

Alberta: Increased from $29.50 to $35.40

British Columbia: Increased from $28.85 to $34.62

Manitoba: Increased from $25.00 to $30.00

New Brunswick: Increased from $24.04 to $28.85

Newfoundland and Labrador: Increased from $26.00 to $31.20

Northwest Territories: Increased from $39.24 to $47.09

Nova Scotia: Increased from $24.00 to $28.80

Nunavut: Increased from $35.00 to $42.00

Ontario: Increased from $28.39 to $34.07

Prince Edward Island: Increased from $24.00 to $28.80

Quebec: Increased from $27.47 to $32.96

Saskatchewan: Increased from $27.00 to $32.40

Yukon: Increased from $36.00 to $43.20

 

How this affects employers

 

Employers hiring under the TFWP will now need to budget for higher wages, potentially impacting various sectors:

Budget adjustments: With the wage threshold up by 20%, employers must reassess wage offers to qualify for high-wage LMIA applications. 

Industry challenges: Sectors like agriculture, hospitality, construction, and retail may see increased operational costs due to their reliance on foreign workers to fill labour shortages.

 

How Indian workers benefit

 

Indian nationals working in Canada under the TFWP stand to gain from this wage increase, which brings their earnings in line with local standards and strengthens their eligibility for permanent residency.

 

What is a Labour Market Impact Assessment?

 

A Labour Market Impact Assessment (LMIA) is a document that some Canadian employers need before they can hire foreign workers. It serves as proof that hiring a foreign worker is necessary for a position because no Canadian citizen or permanent resident is available to fill it. When granted, a positive LMIA, also known as a confirmation letter, indicates approval to proceed with hiring from abroad.

 

How does an LMIA work?

 

For foreign workers aiming to work in Canada, securing an LMIA is often a critical step in obtaining a work permit. Here’s what’s required for the process:

 

Job offer letter

Employment contract

Copy of the LMIA

LMIA number

 

Once these are secured, the worker can move forward with their work permit application.

 

How do employers apply for an LMIA?

 

Employers must first demonstrate that they have made extensive efforts to hire locally before submitting an LMIA application. This process typically involves:

 

Posting the job vacancy in Canada for several weeks

Interviewing suitable local candidates

Documenting the hiring process to show the need for a foreign hire

 

Application cost and processing time

 

Cost: $1,000 per position.

Processing time: Applications may take from several weeks to a few months, depending on the specific stream and demand.

 

What happens after getting an LMIA?

 

Once an employer receives a positive LMIA, the foreign worker can apply for a Canadian work permit using the LMIA and related job documents.

 

Exemptions to LMIA requirements?

 

Not all employers are required to obtain an LMIA. Some can hire foreign workers without this document through certain International Mobility Programs, which cater to specific job types and international agreements. Employers can check their eligibility under these programs before applying for an LMIA.