Canada lifts wage bar for temp workers by 4%; Indian immigrants face impact

Canada raises TFWP wage thresholds; Indian workers face higher LMIA cut-offs as low-wage roles risk ineligibility in cities with over 6 per cent unemployment

Canada has raised the wage thresholds for employers and foreign workers applying under the Temporary Foreign Worker Program (TFWP), a change that could affect thousands of Indians already working or hoping to work in the country.

 

The new wage requirements came into force on June 27, 2025. Employers submitting a Labour Market Impact Assessment (LMIA)—a mandatory step for most work permit applications under the TFWP—must now meet higher wage benchmarks across nearly all provinces and territories.

 

In 2023, over 188,500 people held TFWP work permits in Canada, according to Statistics Canada. India topped the list with 41,115 permits.

 

 

What’s changed and how it works

 

The updated wage threshold determines which stream a worker and employer fall under—either high-wage or low-wage. The distinction affects the application process and available pathways.

 

• If the wage being offered meets or exceeds the threshold for a particular province, the application falls under the high-wage stream.

• If it falls below, it must go through the low-wage stream, which faces additional restrictions.

 

Here's how the thresholds have changed across provinces:

 

Alberta: From CAD 35.40 to CAD 36.00

British Columbia: From CAD 34.62 to CAD 36.60

Ontario: From CAD 34.07 to CAD 36.00

Quebec: From CAD 32.96 to CAD 34.62

Manitoba: From CAD 30.00 to CAD 30.16

Saskatchewan: From CAD 32.40 to CAD 33.60

Nova Scotia, New Brunswick, Prince Edward Island: All raised from CAD 28.80–28.85 to CAD 30.00

Newfoundland and Labrador: From CAD 31.20 to CAD 32.40

Yukon: From CAD 43.20 to CAD 44.40

Northwest Territories: From CAD 47.09 to CAD 48.00

Nunavut remained unchanged at CAD 42.00

 

The current exchange rate is approximately 1 Canadian dollar to 61 Indian rupees, which means a wage threshold of CAD 36.00 in provinces like Alberta or Ontario amounts to around ₹2,200 per hour.

 

Freeze on low-wage applications in high-unemployment areas

 

Employers in areas with unemployment rates above 6 per cent are already barred from applying for low-wage LMIAs under a moratorium that started on September 26, 2024. The new wage thresholds may push more job roles into the low-wage category, making them ineligible in such regions.

 

The freeze will remain in place until July 10, 2025.

 

Census Metropolitan Areas (CMAs) affected include:

 

Toronto (8.6 per cent), Windsor (9.3 per cent), Peterborough (9.9 per cent)

Edmonton (7.3 per cent), Calgary (7.8 per cent), Vancouver (6.6 per cent)

Montréal (6.7 per cent), Hamilton (7.3 per cent), Kitchener (8.5 per cent)

 

If a role previously qualified under high-wage but now falls below the new wage cut-off, employers in these cities can no longer sponsor a TFWP worker for that position.

 

Further restrictions based on workforce composition

 

There are additional restrictions for employers with too many low-wage roles:

 

• For most employers, low-wage workers cannot exceed 10 per cent of the total staff at a worksite.

• For employers in construction, food manufacturing, hospitals, and nursing care, the cap is 20 per cent.

 

Low-wage LMIA applications will be rejected if they breach these thresholds.

 

Caregiving roles also face tighter rules

 

Specific in-home caregiving positions also fall under scrutiny. These include:

 

NOC 31301: Registered nurses and psychiatric nurses

NOC 32101: Licensed practical nurses

NOC 44100: Home childcare providers

NOC 44101: Attendants for persons with disabilities, live-in caregivers, personal care attendants

 

According to the federal government, these categories are under review for future restrictions, in light of workforce composition concerns.

 

Why the TFWP is being tightened

 

The Temporary Foreign Worker Program allows Canadian employers to hire foreign nationals when local workers are unavailable. But throughout 2024, the programme drew criticism for alleged abuse, wage suppression, and overuse—issues linked to housing shortages and strained public services.

 

In response, the government introduced several measures:

 

LMIA validity was cut from one year to six months

Duration of employment under the low-wage stream was reduced

Annual targets were introduced to control the number of new TFWP admissions

Visitors can no longer convert to job-supported work permits under the programme

 

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.