Employers that operate several small sites across Canada can now hire more low‑wage temporary foreign workers under the Temporary Foreign Worker Program (TFWP). The change, announced by Employment and Social Development Canada (ESDC) on 18 August 2026, modifies how the workforce‑cap is calculated for locations with fewer than 10 employees.
New cap calculation for multi‑site employers
- Previous rule: an employer could hire up to 10 % of its total workforce as low‑wage foreign workers, or 20 % for the in‑demand sectors of health care, construction and food production.
- New rule: for each work location that has fewer than 10 employees, the employer may hire:
- One low‑wage foreign worker (general sectors)
- Two low‑wage foreign workers (in‑demand sectors)
The cap is now based on the number of employees at each individual site rather than the national total. This alternative calculation previously applied only to employers with fewer than 10 employees nationwide; it has been extended to any employer with small work sites.
What counts as a low‑wage position
A position is classified as low‑wage when its hourly rate is below 120 % of the regional median wage published by the federal Job Bank. In Ontario, the threshold is $36.92 per hour (as of the article date). Positions that meet or exceed the threshold fall under the high‑wage stream, which is not subject to the workforce cap.
Labour Market Impact Assessment (LMIA) requirements
To obtain or renew a low‑wage work permit, the employer must secure a positive or neutral LMIA from ESDC, demonstrating that no qualified Canadian citizen or permanent resident is available for the job. The LMIA calculation of workforce size at a location includes:
- All full‑time employees
- Part‑time employees (counted as 0.5 of an employee)
- Approved foreign workers who have not yet started work
- Vacant positions for which the employer is requesting hires
Additional employer obligations for low‑wage workers
- Pay for the worker’s transportation to and from Canada
- Provide suitable housing that costs less than 30 % of the worker’s pre‑tax income
- Purchase private health insurance for workers not covered by provincial/territorial plans
Rural‑area cap and urban moratorium
- Since 13 March 2026, provinces may raise the low‑wage cap to 15 % for employers operating in rural areas.
- Since September 2024, a moratorium prevents hiring or renewing low‑wage permits in urban areas where unemployment exceeds 6 %.
Overall TFWP and IMP volumes
The majority of Canadian work permits are issued through the International Mobility Program (IMP), which does not require an LMIA. For 2026, the government’s immigration levels plan targets:
- 60,000 foreign workers through the TFWP
- 170,000 foreign workers through the IMP
These figures provide context for the relative size of the low‑wage stream within Canada’s broader temporary worker framework.
Source article: www.cicnews.com
