Canada Tightens Low-Wage Foreign Worker Hiring Rules

Canada has increased the wage thresholds that separate low-wage and high-wage positions under the Temporary Foreign Worker Program, tightening access to permits in regions with elevated unemployment.

The new rates took effect July 17, 2026. Employers in census metropolitan areas with unemployment of 6 per cent or higher cannot seek a new low-wage Labour Market Impact Assessment, or renew one, for jobs paying below the applicable threshold.

New Wage Levels

The thresholds equal 120 per cent of the median hourly wage in each province or territory. Alberta’s rate rose to $37.50 from $36.00, British Columbia’s to $38.40 from $36.60, Ontario’s to $36.92 from $36.00, Quebec’s to $36.00 from $34.62 and Saskatchewan’s to $34.62 from $33.60.

The remaining thresholds are $31.33 in Manitoba, $31.73 in New Brunswick, $33.60 in Newfoundland and Labrador, $31.96 in Nova Scotia, $31.20 in Prince Edward Island, $45.00 in Nunavut and $45.60 in Yukon. The Northwest Territories remains at $48.00.

Hiring Freeze Covers 26 Regions

The restriction applies in 26 metropolitan areas. They include St. John’s, Moncton, Montréal and Ottawa-Gatineau, plus 12 Ontario regions: Belleville–Quinte West, Peterborough, Oshawa, Toronto, Hamilton, Kitchener-Cambridge-Waterloo, Brantford, Guelph, London, Windsor, Barrie and Greater Sudbury.

It also covers Saskatoon; Calgary, Red Deer and Edmonton; and Kelowna, Kamloops, Chilliwack, Abbotsford-Mission, Vancouver and Nanaimo in British Columbia.

Oshawa has the highest unemployment rate at 8.5 per cent. Moncton and Kitchener-Cambridge-Waterloo are at 8.1 per cent.

Additional Low-Wage Rules Remain

Employers outside those regions may still hire below the threshold, but temporary foreign workers generally cannot exceed 10 per cent of employees at a work location. Some sectors, including construction and food manufacturing, have a 20 per cent cap.

A federal measure allows participating provinces to raise the cap to 15 per cent for rural employers from April 1, 2026, to March 31, 2027.

Employers must advertise a position for at least eight weeks during the previous three months. They must also recruit underrepresented groups and young people between the ages of 15 and 30.

Employers must invite Job Bank candidates rated two stars or higher. They are also expected to provide “suitable and affordable” housing and cover workers’ round-trip transportation costs.

Ottawa Continues to Reduce Admissions

The TFWP allows employers to hire foreign workers when Canadians or permanent residents are unavailable. Employers need a positive or neutral LMIA, and permits remain tied to an employer and position.

Employers must pay whichever amount is higher: the regional median wage for the occupation or the compensation received by Canadians and permanent residents performing the same job at the same location.

Ottawa introduced the unemployment-based freeze in 2024, raised the low-wage threshold to 120 per cent of the median wage and reduced the workforce cap to 10 per cent.

TFWP admissions in 2026 are more than 50 per cent below 2024 levels. The government plans to admit 60,000 TFWP permit holders this year.

It has also set a target of 170,000 permits under the LMIA-exempt International Mobility Program. Admissions through that program are down 69 per cent compared with 2024.