Wage Review – Temporary Foreign Worker Program (TFWP)
The July 3, 2025 update focuses primarily on adjusting wage thresholds for the TFWP to reflect inflation, rising living costs, and regional economic trends. Below are the key elements of the update:
1. Updated Wage Thresholds Effective June 27, 2025
The wage review aligns with the new wage thresholds announced on June 27, 2025, which determine whether a position falls under the High-Wage or Low-Wage Stream. These thresholds vary by province and territory, ensuring that TFW wages are competitive with local standards. For example:
British Columbia: The threshold increased by $1.98 to $36.60 per hour, reflecting the high cost of living in areas like Vancouver.
Manitoba: The threshold is set at $30.00 per hour.
Northwest Territories: The threshold reaches $48.00 per hour, the highest in Canada, due to the region’s unique economic conditions.
These adjustments aim to ensure fair compensation for TFWs while encouraging employers to prioritize hiring Canadians where possible. The updated thresholds apply to all LMIA applications submitted on or after June 27, 2025.
2. Annual Wage Review Requirement
Employers are required to review and adjust TFW wages annually to ensure they meet or exceed the prevailing wage for the occupation and region, as listed on Canada’s Job Bank. The July 3, 2025 update emphasizes that this review must be completed by January 1, 2026, for all TFWs currently employed. In Quebec, employers must refer to the Ministry of Immigration, Francophone, and Integration (MIFI) Wage Guide, which sets wages based on years of experience:
0–2 years: First quartile wage.
2–9 years: Second quartile wage.
9+ years: Third quartile wage.
If the prevailing wage or the employer’s internal median wage for similar roles is higher than the TFW’s current wage, employers must increase the wage accordingly. Failure to comply can result in penalties, including fines or bans from the TFWP.
3. Stricter Low-Wage Stream Restrictions
The update reinforces restrictions introduced on September 26, 2024, which prohibit processing LMIA applications for low-wage positions in Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher. Exceptions are made for sectors critical to food security (e.g., primary agriculture, food processing) and high-demand industries like construction and healthcare. The unemployment rates by CMA are updated quarterly, with the next update scheduled for October 2025.
Additionally, the cap on low-wage TFWs has been reduced to 10% of an employer’s total workforce (20% for sectors like construction and healthcare). The maximum employment duration for low-wage stream workers remains one year, down from two years, as set in August 2024.
4. High-Wage Stream Wage Increase
Effective November 8, 2024, the high-wage stream threshold was raised to 20% above the provincial or territorial median wage, resulting in hourly wage increases of $5–$8 depending on the region. For example, in Ontario, the threshold rose from $28.39 to $34.07 per hour. This change shifts more jobs to the low-wage stream, which has stricter requirements, such as providing housing and transportation for workers.
5. Enhanced Compliance and Enforcement
The July 3, 2025 update underscores the government’s commitment to program integrity. Employers can no longer use attestation letters from lawyers or accountants to prove business legitimacy, a change effective October 28, 2024. Instead, they must rely on existing information-sharing agreements with provincial and territorial partners.
The July 3, 2025 wage review update has significant implications for both employers and TFWs, reflecting Canada’s broader economic and political context.
