The Canadian federal government has increased the hourly wage thresholds for the low‑wage stream of the Temporary Foreign Worker Program (TFWP) effective July 17 2026. Employers in high‑unemployment regions can no longer initiate new hiring or renew existing TFWP work permits for positions that pay below the new thresholds.
Updated wage thresholds (120 % of median wage)
| Province / Territory | New threshold (CAD / hour) | Previous threshold |
|---|---|---|
| Alberta | $37.50 | $36.00 |
| British Columbia | $38.40 | $36.60 |
| Manitoba | $31.33 | $30.16 |
| New Brunswick | $31.73 | $30.00 |
| Newfoundland and Labrador | $33.60 | $32.40 |
| Northwest Territories | $48.00 | $48.00 |
| Nova Scotia | $31.96 | $30.00 |
| Nunavut | $45.00 | $42.00 |
| Ontario | $36.92 | $36.00 |
| Prince Edward Island | $31.20 | $30.00 |
| Quebec | $36.00 | $34.62 |
| Saskatchewan | $34.62 | $33.60 |
| Yukon | $45.60 | $44.40 |
Regions where the low‑wage freeze applies
The freeze covers census metropolitan areas with an unemployment rate of 6 % or higher, including:
- St. John’s, NL (7.3 %)
- Moncton, NB (8.1 %)
- Montréal, QC (6.8 %)
- Ottawa‑Gatineau, ON/QC (6.7 %)
- Belleville–Quinte West, ON (6.7 %)
- Peterborough, ON (7.0 %)
- Oshawa, ON (8.5 %)
- Toronto, ON (7.3 %)
- Hamilton, ON (6.9 %)
- Kitchener‑Cambridge‑Waterloo, ON (8.1 %)
- Brantford, ON (6.2 %)
- Guelph, ON (7.4 %)
- London, ON (7.8 %)
- Windsor, ON (7.9 %)
- Barrie, ON (7.9 %)
- Greater Sudbury, ON (6.2 %)
- Saskatoon, SK (6.5 %)
- Calgary, AB (7.0 %)
- Red Deer, AB (7.2 %)
- Edmonton, AB (7.2 %)
- Kelowna, BC (7.5 %)
- Kamloops, BC (7.0 %)
- Chilliwack, BC (7.9 %)
- Abbotsford‑Mission, BC (8.0 %)
- Vancouver, BC (6.7 %)
- Nanaimo, BC (6.5 %)
Employers outside these areas may still hire for roles below the threshold, but must meet additional low‑wage stream requirements.
Low‑wage stream requirements
- Cap on foreign workers: 10 % of the workforce per work location (20 % cap for certain sectors such as construction or food manufacturing).
- A temporary measure (April 1 2026 – March 31 2027) raises the cap to 15 % for rural employers in provinces that opt in.
- Job advertising: Minimum eight‑week advertisement period in the last three months (double the four‑week period for the high‑wage stream).
- Targeted recruitment: Efforts must focus on under‑represented groups (e.g., Indigenous peoples, persons with disabilities) and youth aged 15–30.
- Job Bank invitations: Employers must extend invitations to all Job Bank matches rated two stars or higher (instead of four stars or higher under the high‑wage stream).
- Housing and transport: Employers must provide “suitable and affordable” housing and cover round‑trip transportation costs for foreign workers.
Overview of the Temporary Foreign Worker Program
The TFWP enables Canadian employers to hire foreign workers when no qualified Canadian citizen or permanent resident is available. A work permit can be issued or renewed only after the employer obtains a positive or neutral Labour Market Impact Assessment (LMIA). Employers must pay the higher of either the median regional wage for the occupation or compensation comparable to that earned by Canadians in the same role and location.
Recent policy changes and admissions trends
- 2024 reforms: Introduced a moratorium on low‑wage LMIAs in regions with unemployment > 6 %; raised the low‑wage threshold to 120 % of the regional median wage; reduced the low‑wage workforce cap from 20 % to 10 %; and set annual admission targets for temporary residents.
- 2026 admissions: TFWP work permit admissions have fallen by more than 50 % compared with 2024, with a target of 60 000 permits for the year.
The International Mobility Program (IMP), which does not require LMIAs, has a 2026 target of 170 000 permits but has seen a 69 % decline relative to 2024.
These adjustments aim to tighten labour market protections, curb wage suppression, and address youth unemployment concerns while still allowing employers to fill genuine labour shortages.
Source article: www.cicnews.com
