Canada Updates TFWP Wages: What Workers & Employers Need to Know

Canada Increases Wage Requirements for the Temporary Foreign Worker Program: What Employers and Workers Need to Know

As of June 27, 2025, Employment and Social Development Canada (ESDC) has officially raised the wage thresholds for the Temporary Foreign Worker Program (TFWP). If you’re an employer looking to hire international talent—or a foreign worker hoping to land a job in Canada—this change could impact your eligibility and application process.

Let’s walk through what this means, how it affects LMIA applications, and what both workers and employers should be aware of moving forward.

Key Highlights

• Wage thresholds under the TFWP have increased across almost all provinces and territories.
• Wages now determine whether a position falls under the high-wage or low-wage stream of the TFWP.
• Low-wage LMIA applications are restricted in high-unemployment areas (6% or more).
• Employers exceeding the cap on low-wage workers at a single work site may be ineligible to apply for new LMIAs.
• Certain sectors can go up to 20% low-wage workers instead of 10%.
• Recent changes are part of broader efforts to curb TFWP abuse and manage temporary resident levels in Canada.

What’s Changed in the TFWP Wage Thresholds?

The TFWP is a key hiring route for employers in Canada who are unable to find Canadian citizens or permanent residents for available jobs. One of the major criteria in determining eligibility—especially for LMIA applications—is the offered wage. This determines whether the job falls under the high-wage or low-wage stream, each with different employer obligations and processing rules.

ESDC has updated the median hourly wage thresholds for all provinces and territories, which now apply to any LMIA applications submitted on or after June 27, 2025. Here’s a quick look at a few notable changes:

• British Columbia: From $34.62 to $36.60 (up 5.71%)
• Ontario: From $34.07 to $36.00 (up 5.66%)
• Quebec: From $32.96 to $34.62 (up 5.04%)
• Manitoba: From $30.00 to $30.16 (up 0.53%)

To view the full list of updated thresholds by province, visit our LMIA wage threshold resource.

High-Wage vs. Low-Wage Streams

If the position pays at or above the median wage for the region, the employer must apply through the high-wage stream. If it falls below that threshold, the employer must use the low-wage stream.

This distinction matters because each stream has different requirements around worker protections, housing, transportation, and caps on the number of low-wage workers allowed.

Low-Wage LMIA Restrictions in High-Unemployment Areas

There’s more to consider for employers applying under the low-wage stream. Since September 26, 2024, ESDC has paused processing of these applications in regions where the unemployment rate is 6% or higher.

Here’s a sample of affected cities and their current unemployment rates (April to July 2025):

• Toronto, ON: 8.6%
• Calgary, AB: 7.8%
• Vancouver, BC: 6.6%
• Montréal, QC: 6.7%

If a job that previously qualified under the high-wage stream now falls below the updated threshold, the employer may no longer be eligible to apply for an LMIA in any of these restricted areas. This can be a major hurdle for both employers and foreign nationals hoping to work in Canada.

Additional Restrictions for Low-Wage LMIA Applications

Workforce Composition Caps

Employers are also limited in how many low-wage foreign workers they can have at a given work site. Typically, the cap is 10% of the total workforce. However, a few sectors benefit from a more generous cap of 20%, including:

• Construction (NAICS 23)
• Food manufacturing (NAICS 311)
• Hospitals (NAICS 622)
• Nursing and residential care facilities (NAICS 623)

Special Considerations for In-Home Caregivers

Some occupations—particularly in-home caregivers—are under review for future changes. These include roles like:

• Registered nurses (NOC 31301)
• Licensed practical nurses (NOC 32101)
• Home childcare providers (NOC 44100)
• Home support and personal care attendants (NOC 44101)

Both ESDC and IRCC are currently evaluating whether these categories should be included in upcoming restrictions.

Why These Changes Matter

These wage updates and policy shifts aren’t just about numbers—they reflect broader concerns about temporary foreign worker protections, local job availability, and the overall sustainability of Canada’s immigration system.

In recent years, the TFWP has faced criticism over alleged misuse by employers, and concerns it may be contributing to Canada’s growing temporary resident population. To address this, the federal government has rolled out several reforms, including:

• Shortening LMIA validity from 12 months to 6 months
• Limiting employment duration in the low-wage stream
• Setting yearly intake targets for new TFWs
• Removing the option for visitors to apply for job-supported TFWP work permits

If you’re an employer navigating the LMIA process or a worker hoping to come to Canada through the TFWP, these changes can significantly affect your next steps.

Final Thoughts

Whether you’re hiring or looking to be hired, staying informed is key. With the updated wage thresholds, stricter restrictions, and regional unemployment-based policies, understanding the lay of the land can save you time, effort, and disappointment.

If you’re in Manitoba and exploring other immigration pathways, you might also be interested in the Manitoba Provincial Nominee Program (MPNP) as an alternative to the TFWP.

Need Help Navigating Your Options?

Don’t go it alone. A regulated immigration consultant or lawyer can help you assess your eligibility, determine the right stream, and prepare your application with care and accuracy.

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