Canada Increases Wage Thresholds for the Temporary Foreign Worker Program

Nationwide Visas
[Published 02 Jul, 2025 | 04:46 AM]
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Canada raised the pay requirements for companies using the Temporary Foreign Worker Program (TFWP). This is an update by the federal government to ensure that wage expectations meet the rates of inflation and regional economic growth. The reforms will be available to Labour Market Impact Assessments (LMIAs) obtained after June 27, 2025.

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The new wage levels will also affect the decision of the employer in a job offer (regarding whether it is a high-wage or a low-wage job, and those that fall under the TFWP, which directly affects the application requirements, processing procedures).

What's Changing?

Employers who want to recruit a temporary foreign worker (TFW) now have to make sure that their wages match revised and updated provincial or territorial wage levels. They define which stream of the program the employer expects to be under (high-wage or low-wage).

• In case the wage being offered equals or goes beyond the new limit: Apply under the High-Wage Stream, which consists of more rigid compliance regulations and transition plans.

• In case the wage is less than the new threshold: Apply to the Low-Wage Stream, which comes with even greater restrictions (including maximum limits on TFW hire, and more rigorous responsibilities on employers).

This calculation aligns the wage with the updated wage rates from Statistics Canada's Labour Force Survey 2023-2024 and modifies the wage by 20% to reflect the wage development from NOC 2021.

New Wage threshold by province or territory

Some of the important amendments, which will come into force as of June 27, 2025, are as follows:

To get the complete provincial breakdown, the employers may find it advisable to consult Employment and Social Development Canada.

Why Does This Matter?

This wage increase not only affects employer compliance but also influences foreign workers’ eligibility under Canada Work Permit and Provincial Nominee Programs (PNPs). Most of the streams with provincial nominations, especially those based on employment, demand offers of employment at prevailing local wages.

Additionally, for candidates planning to apply for Canada PR, these new wage rules will play a key role in job offer validation under Express Entry or PNP pathways.

Program Impacts / Compliance

The employers in the high-wage stream need to:

• Provide a plan for transitioning to how they will reduce foreign labour.
• Be dedicated to providing equal rights and treatment for foreign workers in terms of working circumstances.
• Make sure you specify a proper wage benchmark when utilising the LMIA.

Low-wage stream Employers endure:

• Limitations on the number of low-wage TFWs in each workplace.
• Transportation cost of the worker.
• Tough restrictions on lodging and healthcare choice among TFWs.

What’s Next?

This revision to the Temporary Foreign Worker Program wage thresholds is designed to reflect Canada’s current labour market conditions while protecting both domestic and foreign workers. It also presents a vital step towards equitable compensation policies and keeping Canada an attractive destination for skilled international talent.

Employers, immigration consultants, and overseas job seekers must inform themselves of these new wage levels when compiling Canadian immigration or work permits applications. It is necessary to follow wage trends because those who will immigrate to Canada or intend to work there in 2025 and later need to be aware of them.

To be on the safe side of all, it is best to seek advice from a Best Immigration Consultant in India to be on the same page with them regarding the requirements, and making the process successful in the hiring or application for the position.