Canada Extends Low-Wage Foreign Worker Permits to Two Years

Canada has introduced a significant change to its Temporary Foreign Worker Program (TFWP), allowing eligible low-wage foreign workers to receive work permits lasting up to two years instead of one.

Employment and Social Development Canada (ESDC) announced the measure on November 6, 2026. It applies to Labour Market Impact Assessment (LMIA) applications submitted through the program's low-wage stream on or after that date.

What the New Two-Year Rule Means

Under the revised rules, employers can request LMIAs supporting employment periods of up to two years.

An LMIA confirms that an employer needs a foreign worker because a qualified Canadian citizen or permanent resident is unavailable for the position.

Immigration, Refugees and Citizenship Canada (IRCC) uses the approved employment period to determine the maximum duration of the worker's permit.

The change offers eligible employers and workers greater stability, although approval for the full two years is not automatic.

Who Qualifies Under the Low-Wage Stream?

Canada classifies a position as low-wage when its hourly pay falls below 120% of the median hourly wage in the province or territory where the job is located.

The reported thresholds currently include $36.92 per hour in Ontario and $38.40 in British Columbia.

Employers must secure a positive or neutral LMIA before eligible foreign workers can receive permits through this program.

Workers seeking an extension must also have their employers obtain a new LMIA.

Restrictions Continue in High-Unemployment Cities

Despite the longer permit duration, Canada continues restricting low-wage LMIA processing in regions experiencing higher unemployment.

ESDC generally refuses to process applications for non-exempt positions in Census Metropolitan Areas (CMAs) where unemployment reaches 6% or more.

The restriction currently covers 30 metropolitan areas, including Toronto, Vancouver, Montreal, Calgary, Edmonton and Halifax.

Employers in affected regions may therefore struggle to obtain the approvals needed to extend their workers' permits.

ESDC reviews the affected locations quarterly, with the next update scheduled for January 8, 2027.

Certain occupations remain exempt, including positions in agriculture, construction and healthcare.

The government has also added early childhood educators to the exemption list, effective November 6, 2026.

More Flexibility for Workers Awaiting LMIA Decisions

Canada has also adjusted how it handles work permit extensions when an employer's LMIA application remains pending.

Workers whose permits expire within two weeks may qualify for concurrent processing if their employers submitted LMIA applications sufficiently early.

This allows eligible workers to submit extension applications before receiving an LMIA decision.

Workers who apply before their existing permits expire may maintain their legal status and continue working under their previous permit conditions while IRCC processes their applications.

On October 28, 2026, IRCC removed the previous 90-day limit for concurrent processing.

The earlier limit had increased from 60 to 90 days on August 21, 2026.

Together, these changes provide additional flexibility for eligible foreign workers navigating permit renewals.

Why This Change Matters

The longer employment period may reduce the frequency of permit renewals and provide greater certainty for employers facing labour shortages.

However, the changes do not remove existing LMIA requirements or regional restrictions. Workers and employers must still meet eligibility rules, follow application deadlines and obtain the necessary approvals.