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Canada Updates International Student and PGWP Rules

Canada Updates International Student and PGWP Rules

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    How 2025 Redefined Canada’s Rules for International Students and PGWP Applicants

    The year 2025 marked a turning point for international education in Canada. A series of immigration and policy updates reshaped how students enter the country, move between institutions, support their families, and transition into the workforce after graduation. Together, these measures reflect Canada’s broader effort to manage temporary resident numbers while prioritising programs aligned with labour market needs.

    From tighter study permit controls to redesigned Post-Graduation Work Permit (PGWP) rules, the changes introduced throughout the year now play a decisive role in how international students plan their academic and career paths.

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    Stricter Oversight on Changing Institutions

    One of the most impactful shifts in 2025 involved transferring between designated learning institutions (DLIs). Previously, students could move to a new school with minimal administrative steps. That flexibility ended with new rules requiring students to receive formal approval for a new study permit before changing institutions.

    In addition, students seeking an extension after switching schools must now submit a valid provincial or territorial attestation letter along with their application. While transitional allowances were temporarily provided for students admitted early in 2025, the long-term implication is clear: changing schools now involves additional time, documentation, and planning.

    For students aiming to qualify for a PGWP, this change carries added importance. Applying for a new study permit can affect exemptions tied to older PGWP eligibility rules, making program and timing decisions more critical than ever.

    Also check out 2026-2028 immigration levels plan | Canada Immigration Plan 2025 to 2027 Canada Immigration Levels Plan For 2024-2026 | Canada Immigration Level Plan for 2023-2025​

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    Family Work Permits Become More Selective

    Canada also narrowed access to open work permits for spouses and common-law partners of international students. From January 2025 onward, only spouses of students enrolled in specific programs, such as longer master’s degrees, doctoral studies, or select professional fields, are eligible.

    This marked a departure from earlier policies that allowed broader access regardless of program length. The updated framework prioritises advanced and workforce-aligned education pathways, signalling a shift toward more targeted family migration policies.
    Province Canadian city
    Ontario Ottawa
    London
    Mississauga
    Toronto
    Brampton
    Hamilton
    British Columbia Nanaimo
    Victoria
    Vancouver
    Kelowna
    Alberta Calgary
    Edmonton
    Quebec Quebec City
    Montreal
    Saskatchewan Regina
    Manitoba Winnipeg
    Nova Scotia Halifax
    While these figures represent a significant numerical reduction, officials indicate that the adjustment aims to bring goals in line with realistic processing capacity rather than actually slashing immigration. In fact, statistics for the first eight months of 2025 already indicate that actual admissions have lagged behind planned numbers, reaching just 42% for temporary foreign workers and 29% for students thus far.
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    Study Permit Numbers Tightened Nationwide

    Managing student intake became another key priority in 2025. The federal government significantly reduced the number of study permits it planned to issue, citing pressure on housing, healthcare, and public infrastructure.

    The cap introduced for the year limited the number of applications processed and resulted in fewer permits being approved overall. Mid-year data showed that new student arrivals were well below annual targets, confirming the immediate impact of these restrictions. Further reinforcing this trend, authorities later announced even lower issuance targets for 2026, indicating that tighter controls on international student numbers will continue in the near future.

    National rank Canadian city
    1 Ottawa, Ontario
    2 Nanaimo, British Columbia
    3 Victoria, British Columbia
    4 Vancouver, British Columbia
    5 Quebec City, Quebec
    6 Calgary, Alberta
    7 Halifax, Nova Scotia
    8 Edmonton, Alberta
    9 Kelowna, British Columbia
    10 Montreal, Quebec
    11 London, Ontario
    12 Mississauga, Ontario
    13 Toronto, Ontario
    14 Brampton, Ontario
    15 Regina, Saskatchewan
    16 Winnipeg, Manitoba
    17 Hamilton, Ontario
    While these figures represent a significant numerical reduction, officials indicate that the adjustment aims to bring goals in line with realistic processing capacity rather than actually slashing immigration. In fact, statistics for the first eight months of 2025 already indicate that actual admissions have lagged behind planned numbers, reaching just 42% for temporary foreign workers and 29% for students thus far.
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    A Different Path for Graduate-Level Students

    While caps affected most applicants, graduate students received a notable policy advantage. Master’s and doctoral candidates enrolling in public institutions were granted exemptions from the study permit cap starting in 2026.

    • Vancouver, British Columbia
    • Winnipeg, Manitoba
    • Halifax, Nova Scotia
    • Kingston, Ontario
    • Montréal, Quebec
    • Moncton, New Brunswick
    • Saint John, New Brunswick
    • Fredericton, New Brunswick

    This move positions advanced research and postgraduate education as a strategic priority for Canada. Removing the cap and attestation requirements for these students not only simplifies applications but also reduces financial and administrative barriers associated with securing a study permit.

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    Faster Processing for Doctoral Applicants

    Another graduate-focused reform introduced accelerated processing for doctoral study permit applications. Eligible candidates applying from outside Canada can now receive decisions in as little as two weeks, a significant improvement over standard timelines.
    This expedited process also extends to immediate family members applying alongside the principal applicant, making Canada more competitive in attracting high-level research talent from abroad.
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    PGWP Eligibility Rules Reworked Again

    The Post-Graduation Work Permit framework underwent further adjustments in 2025. After introducing field-of-study requirements in 2024, immigration authorities revisited the list of eligible programs, adding some disciplines while removing others.

    Although certain removals were delayed to early 2026, students were urged to verify PGWP eligibility before committing to a program. Degree-level students remain exempt from field-of-study restrictions, but non-degree programs continue to face stricter alignment with labour shortages.
    These evolving rules underscore the growing link between education pathways and Canada’s long-term workforce planning.
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    Higher Financial Proof Requirements Introduced

    Living costs also came under closer scrutiny. In late 2025, the minimum funds international students must show, excluding tuition and travel, were increased nationwide (outside Quebec).

    This adjustment reflects rising living expenses and aims to ensure students can support themselves and any accompanying family members. The required amount now scales based on household size and is subject to annual updates.

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    Options for Employers in Restricted Regions

    Employers operating in CMAs with unemployment rates above 6% still have viable alternatives:

    1. Switch to the High-Wage Stream

    By increasing the offered salary to meet or exceed provincial wage thresholds, employers can submit LMIA applications under the high-wage TFWP stream.

    2. Wait for the Next Review

    Unemployment rates are reassessed every three months, meaning some regions may become eligible again in the second quarter of 2026.

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    Fewer New Students Planned for 2026

    Canada’s longer-term immigration planning further confirmed a scaled-back approach. The federal government’s multi-year immigration plan revealed a sharp reduction in new international student admissions for 2026, nearly halving previous targets.
    This reduction aligns with broader efforts to rebalance temporary and permanent resident levels while easing strain on public systems.
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    Addressing a Costly PGWP Application Mistake

    Late in 2025, immigration authorities also clarified a technical issue that had led to widespread PGWP refusals. New requirements, such as language proof and field-of-study evidence, were introduced without clear instructions on how to upload them.

    As a result, many applicants submitted incomplete files. Updated guidance now instructs applicants to merge required documents into a single file during submission, helping prevent avoidable refusals going forward.

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    Governor General’s Role Remains Advisory

    Although the bill references powers vested in the Governor General, these authorities are exercised strictly on the advice of the Prime Minister and cabinet. The office itself does not independently determine immigration policy.
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    Key Questions for Canadian PR

    Low-wage LMIA processing allows Canadian employers to hire foreign workers for positions paying below the provincial or territorial median wage under the Temporary Foreign Worker Program (TFWP).
    Processing was paused or limited to protect the domestic labour market, reduce over-reliance on temporary foreign workers, and ensure employers first attempt to hire Canadian citizens or permanent residents.
    Employers can resume submitting applications in eligible regions and sectors, but must meet stricter requirements such as workforce caps, higher compliance checks, and proof of genuine recruitment efforts.
    Approved LMIAs allow foreign workers to obtain employer-specific work permits, but permits may have shorter validity periods and limited access to family work permit options.
    Low-wage LMIA jobs generally do not directly lead to PR, but in some cases, Canadian work experience may support eligibility under select PNP streams or future pathways.

    What These Changes Mean for Students

    The 2025 reforms collectively signal a more selective and structured approach to international education in Canada. Students are now expected to plan earlier, choose programs more carefully, and stay informed about evolving eligibility rules.

    While opportunities remain strong, particularly for graduate students and those in priority fields, the margin for error has narrowed. For prospective and current students alike, understanding these changes is no longer optional but essential.

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