Canada Raises Wage Thresholds for Temporary Foreign Workers - 2025 Update

Canada has officially updated the minimum wage thresholds under the Temporary Foreign Worker Program (TFWP), effective for all Labour Market Impact Assessment (LMIA) applications submitted on or after June 27, 2025.

These adjustments are intended to reflect the increased cost of living and to ensure that temporary foreign workers (TFWs) are being remunerated fairly, which will be in line with the current economic status of the region.

What’s New?

Employers using the TFWP will be required to pay salaries higher than before or at par with the new province/territory set limits. These levels of wages contribute to defining the stream, to which the job belongs, high-wage or low-wage, which, in turn, influences the type of LMIA application and the duties employers have to fulfil.

When the wage is equal to or higher than the limit, the employer goes through the High-Wage Stream, where more procedures are compulsory, such as transition planning.

When the wage is below the threshold, the employer has to apply through the Low-Wage Stream, whereby it has recruiting limits and additional regulations.

Why Is It Important?

The update is using wage data according to the Labour Force Survey by Statistics Canada in 2023-2024, and the adjustment of 20% according to the NOC 2021 system. Such changes in wages will facilitate good treatment of foreign workers and a fair playing field among Canadian job seekers.

However, that is not the only thing. The following are also affected by these new wage rules:

• Canada Work Permit applications
• Provincial Nominee Program (PNP) eligibility
• Job offer validation for those planning to apply for Canada PR

These changes are important to you, therefore as a worker or an employer.

Calculate Your CRS Points

Wage threshold by province or territory

Some of the important amendments, which will come into force as of June 27, 2025, are as follows:

Impact on Canada Work Permits and PR Applications

If you're planning to apply for a Canada Work Permit or immigrate through the Provincial Nominee Program (PNP), these wage changes matter.

In the case of most of the PR streams and particularly those based on employment opportunities, such as Express Entry, the salary paid should cover regional standards. This will legitimize the job offer and will give you greater chances of being accepted.

The employers should also change their hiring plans. Competitive and compliant wages are more relevant than ever before.

What Employers Need to Know?

Employers applying under the High-Wage Stream have to:

• Give a transition strategy to decrease dependence on the temporary foreign workers
• Observe every regulation concerning the working conditions and reasonable treatment
• Wage offers have to be at par or above the threshold

Under the Low-Wage Stream, those are more restricted, including:

• Restrictions on the number of foreign workers that they may employ
• Additional transportation, housing, and healthcare requirements
• Stricter oversight

Adapting to the Update

The changes indicate how Canada is functioning to strike a balance between economic development and reasonable employment. They also provide safeguarding opportunities to both foreign and Canadian employees as the employment offers are demarcated according to remuneration that transpires in the market.

On the part of employers, the most important way to ensure that their LMIAs or applications under the TFWP are not delayed is by keeping abreast with wage policies. To foreigners or those seeking to become a PR, it is also essential to be acquainted with such wage regulations, particularly when you are applying as an Indian national.

When you are in doubt about the effects that these changes will have on your case and action, approaching a reputed immigration expert will help you save costs and time.

Subscribe for FREE and stay updated
with the latest Canada Immigration News!

Source: canada.ca

Tags: Temporary Foreign Worker Program Provincial Nominee Program Apply for Canada PR Canada Work Permit Canada TFWP wage threshold update Updated wage thresholds by province Canada Immigration News