Canada raises low-wage TFWP thresholds across provinces
New wage thresholds for Canada’s Temporary Foreign Worker Program (TFWP) low-wage stream came into force on July 17, 2026, raising minimum hourly pay levels in every province and territory. The updated floors determine whether employers can apply for or renew certain work permits under federal rules.
The change aligns wage thresholds with 120% of each region’s median hourly wage, affecting hiring practices in areas with elevated unemployment. Employers in regions meeting specific unemployment criteria are subject to stricter limits on lower-paying roles.
The policy applies nationwide, with thresholds varying by jurisdiction, including Manitoba at $31.33 and British Columbia at $38.40 per hour.
- Updated TFWP low-wage thresholds took effect July 17, 2026
- Thresholds are set at 120% of provincial or territorial median wages
- Restrictions apply to regions with unemployment rates of 6% or higher
- Employers in restricted areas cannot process low-paying LMIA applications
- Thresholds rose in most regions compared to previous levels
- Program rules also include caps, recruitment requirements, and housing obligations
Updated wage thresholds by region
The revised wage floors vary by province and territory, reflecting regional labour market data. In Ontario, the threshold increased to $36.92 per hour, while Alberta’s rose to $37.50.
In Western Canada, Saskatchewan’s new threshold is $34.62 and Manitoba’s is $31.33. British Columbia now requires employers to meet a $38.40 hourly rate for positions outside the high-wage stream classification.
Atlantic provinces also saw adjustments, including $31.96 in Nova Scotia and $31.73 in New Brunswick. In the North, Nunavut reached $45.00 and Yukon $45.60, while the Northwest Territories remained unchanged at $48.00.
Application restrictions in higher-unemployment regions
Federal rules restrict employers in census metropolitan areas with unemployment rates at or above 6% from applying for or renewing Labour Market Impact Assessments (LMIAs) for positions that pay below the updated thresholds. This measure applies to several major urban centres.
Affected areas include Toronto, Vancouver, Montréal, Calgary, and Ottawa-Gatineau, along with mid-sized cities such as London, Windsor, and Kitchener-Cambridge-Waterloo. Reported unemployment rates in these regions range from approximately 6.2% to 8.5%.
In contrast, employers located outside these designated regions may still hire workers under the low-wage stream if all other requirements are met. These include workforce caps and enhanced recruitment obligations.
Low-wage stream requirements and conditions
The TFWP low-wage stream includes several compliance conditions that differ from the high-wage stream. Employers must adhere to caps limiting the proportion of their workforce hired through the program.
In most cases, the cap is set at 10% per work location. Certain sectors, such as construction and food manufacturing, are allowed a higher limit of 20% under existing federal provisions.
A temporary policy effective from April 1, 2026, to March 31, 2027, permits eligible rural employers in participating provinces to increase this cap to 15%. This measure is designed to address persistent labour shortages in non-urban areas.
Employers must also meet expanded recruitment criteria. Job advertisements must run for at least eight weeks within a three-month period, doubling the requirement under the high-wage stream.
Recruitment efforts must include outreach to underrepresented groups, including Indigenous peoples and individuals with disabilities. In addition, employers are required to target youth aged 15 to 30 as part of their hiring strategy.
Another requirement involves engaging with Job Bank candidates. Employers must invite applicants with a match rating of at least two stars, broadening eligibility compared to the four-star threshold in the high-wage stream.
Housing and transportation obligations also apply. Employers must provide suitable and affordable accommodation and cover round-trip travel costs for foreign workers employed through this stream.
Program framework and LMIA process
The Temporary Foreign Worker Program enables Canadian employers to fill labour gaps when qualified citizens or permanent residents are not available. Each application requires a Labour Market Impact Assessment, confirming the need to hire a foreign national.
Work permits issued under the program are employer-specific. They authorize employment only for the position and employer listed in the approved LMIA.
Employers must pay wages that meet or exceed either the regional median or the wage offered to Canadian workers in similar roles. This rule applies across both low-wage and high-wage streams.
Provincial programs may operate alongside federal pathways. For example, the Manitoba Provincial Nominee Program (MPNP) selects candidates for permanent immigration but does not replace TFWP hiring requirements.
Policy changes and recent trends
The July 2026 adjustments build on a series of federal measures introduced over the past two years. In 2024, authorities tied low-wage thresholds to 120% of median wages, replacing the previous 100% benchmark.
That same year, a processing pause was implemented for low-wage LMIAs in regions where unemployment exceeded 6%. Workforce caps were also reduced from 20% to 10% in most sectors.
In addition, annual admission targets were introduced for temporary residents, including TFWP permit holders. These measures were designed to regulate program intake and align it with labour market conditions.
Data from early 2026 indicates a significant decline in admissions compared to previous years. Federal figures show that TFWP work permit issuances fell by more than half compared to 2024 during the January to April period.
The government has set a target of 60,000 TFWP permit holders for 2026. This figure contrasts with higher intake levels recorded in earlier years of the program.
Interaction with other work permit programs
Canada’s International Mobility Program (IMP) operates separately from the TFWP and does not require LMIAs. It includes work permits issued for broader economic, cultural, or diplomatic reasons.
For 2026, the admission target under the IMP is 170,000 permits. Recent data shows a 69% reduction in issuance compared to 2024 levels over comparable months.
Both programs form part of Canada’s temporary resident system, which has undergone multiple adjustments since 2024. These changes reflect evolving labour market conditions and federal immigration planning levels.
Ongoing monitoring and regional variation
Wage thresholds and unemployment-based restrictions are subject to periodic updates based on labour market data. Each province’s threshold reflects its own economic conditions and median wage calculations.
Regional disparities remain significant, with higher thresholds in northern territories and certain western provinces. Lower thresholds are generally observed in Atlantic Canada and parts of the Prairie region.
Labour market conditions in major cities continue to influence program enforcement, particularly in areas where unemployment remains above the 6% benchmark.
Further updates to thresholds or program rules are typically announced alongside labour market data releases or federal policy revisions. The July 17, 2026 adjustment represents the latest scheduled update under the current framework.
Additional reporting on provincial immigration activity and program changes is available through ongoing coverage, including updates tracked in the All Draws Index, which compiles recent selection rounds and program developments.
The current thresholds, including Manitoba’s $31.33 hourly requirement, remain in effect nationwide as of July 17, 2026.