Canada has introduced higher wage thresholds under its Temporary Foreign Worker Program (TFWP), with the updated rules taking effect on July 17, 2026. The revised salary benchmarks, which have increased by an average of just over 4%, will affect how employers submit Labour Market Impact Assessment (LMIA) applications when hiring foreign workers.
The updated thresholds determine whether a job qualifies under the High-Wage or Low-Wage stream of the TFWP. Employers must compare the salary they intend to offer with the minimum wage threshold applicable in the province or territory where the employee will work. Positions that meet or exceed the new benchmark can be processed through the High-Wage stream, while jobs that fall below the revised limit must be submitted under the Low-Wage stream.
The increase means some positions that previously qualified for the High-Wage category may now fall into the Low-Wage stream. This change could affect employers because the Low-Wage stream includes additional requirements, restrictions, and compliance obligations.
Officials have advised employers to carefully review the latest provincial and territorial wage thresholds before submitting new LMIA applications. Failing to meet the updated salary requirements could result in applications being processed under a different stream than originally intended.
The Canadian government has also reminded employers that wages offered to temporary foreign workers must reflect the actual market rate for comparable jobs in the same occupation and location. Employers should not artificially raise salaries simply to meet the High-Wage threshold.
Authorities warned that if an offered wage appears to have been increased solely to qualify for the High-Wage stream, without reflecting genuine market conditions, the LMIA application could be refused.
The revised wage thresholds are expected to influence future hiring decisions for businesses relying on international talent. Employers will need to ensure that salary offers comply with both the updated program requirements and local labour market standards before recruiting foreign workers.
The latest changes reinforce Canada’s efforts to maintain fair wages, strengthen labour market protections, and ensure the Temporary Foreign Worker Program continues to align with prevailing employment conditions across the country.
Also Read: Canada Decreases Study Permits for International Students
