Canada has increased wage requirements for the employers using the Temporary Foreign Worker Program (TFWP). Effective from 17th July 2026 higher hourly wage thresholds have been introduced for the low-wage stream. The changes are to ensure foreign workers receive stronger wage protection and reduce reliance on lower-paid temporary labour.
Under the revised rules, wage thresholds have been increased across most provinces and territories. For example, Ontario’s threshold has risen to CAD $36.92 per hour from $36.00, British Columbia’s to $38.40 from $36.60, and Alberta’s to $37.50 from $36.00. These thresholds are calculated at 120% of the median wage for each province or territory.
Employers offering wages below the updated thresholds in regions with unemployment rates of 6% or higher cannot submit new Labour Market Impact Assessment (LMIA) applications or renew existing ones under the low-wage stream. Regions that have been affected include cities such as Toronto, Montréal, Vancouver, Calgary, and Edmonton.
Canadian employers, through TFWP, can hire foreign workers when there are no qualified Canadian citizens or permanent residents available. The recent reforms of lower workforce caps, stricter Labour Market Impact Assessment (LMIA) requirements, and limits on low-wage hiring have made the access tighter.
The raising of the wage threshold is part of the broader efforts to balance labour shortages with domestic employment protection and fair compensation standards for temporary foreign workers
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