Canada Reforms TFW Program to Raise Wages, Tighten Hiring
Canada Reshapes Temporary Foreign Worker Program with Higher Wage Requirements and Stricter Hiring Rules
Canada has introduced a pivotal update to its Temporary Foreign Worker Program (TFWP), which enforces new provincial wage minimums and expands restrictions on low-wage labor applications. The changes, implemented by Employment and Social Development Canada (ESDC), took effect on June 27, 2025, and are expected to reshape how businesses hire temporary international workers.
This reform adjusts the income levels employers must meet to sponsor a foreign worker and revises which employers are eligible to submit Labour Market Impact Assessments (LMIA), a mandatory step in hiring through the TFWP.
New Wage Thresholds Now Mandatory Across Provinces
The minimum wage benchmarks—used to determine whether a job falls under the TFWP’s high-wage or low-wage stream—have been revised in most provinces. These wage levels must be met or exceeded for a role to be classified as “high-wage.”
| Location | Previous Minimum Wage ($) | Updated Minimum Wage ($) | Wage Growth (%) |
|---|---|---|---|
| Alberta | 35.40 | 36.00 | 1.69% |
| British Columbia | 34.62 | 36.60 | 5.71% |
| Manitoba | 30.00 | 30.16 | 0.53% |
| New Brunswick | 28.85 | 30.00 | 3.98% |
| Newfoundland and Labrador | 31.20 | 32.40 | 3.85% |
| Northwest Territories | 47.09 | 48.00 | 1.93% |
| Nova Scotia | 28.80 | 30.00 | 4.17% |
| Nunavut | 42.00 | 42.00 | 0.00% |
| Ontario | 34.07 | 36.00 | 5.66% |
| Prince Edward Island | 28.80 | 30.00 | 4.17% |
| Quebec | 32.96 | 34.62 | 5.04% |
| Saskatchewan | 32.40 | 33.60 | 3.70% |
| Yukon | 43.20 | 44.40 | 2.78% |
Employers offering wages at or above these figures must use the high-wage stream when applying for an LMIA. Any salary below these updated thresholds qualifies for the low-wage stream, which is subject to additional restrictions.
Low-Wage Job Offers Face Regional Hiring Freezes
Not all Canadian regions can support low-wage LMIA applications under the current conditions. The government has temporarily suspended processing of these applications in any area with a jobless rate of 6% or more. This ongoing moratorium applies to several urban centers, impacting the ability of employers in those areas to bring in lower-wage foreign workers.
| City/Region | Unemployment Rate (%) |
|---|---|
| Alberta | |
| Calgary | 7.8 |
| Edmonton | 7.3 |
| Red Deer | 8.4 |
| British Columbia | |
| Abbotsford-Mission | 6.2 |
| Kamloops | 7.1 |
| Kelowna | 6.7 |
| Nanaimo | 6.0 |
| Vancouver | 6.6 |
| New Brunswick | |
| Fredericton | 6.9 |
| Saint John | 7.7 |
| Newfoundland and Labrador | |
| St. John’s | 7.6 |
| Ontario | |
| Barrie | 7.5 |
| Brantford | 7.2 |
| Guelph | 6.2 |
| Hamilton | 7.3 |
| Kingston | 7.2 |
| Kitchener-Cambridge-Waterloo | 8.5 |
| Oshawa | 8.0 |
| Peterborough | 9.9 |
| St. Catharines–Niagara | 7.7 |
| Toronto | 8.6 |
| Windsor | 9.3 |
| Quebec | |
| Drummondville | 8.0 |
| Montréal | 6.7 |
Employers located in these areas cannot submit LMIAs for low-wage jobs until unemployment figures drop below the designated threshold. The freeze will stay in place until at least July 10, 2025.
Stricter Workforce Caps for Low-Wage Workers
Beyond regional limitations, new caps restrict how many low-wage foreign workers an employer can support at a single site:
- General Limit : No more than 10% of an employer's workforce at a location may be filled by low-wage temporary foreign workers.
- Expanded Limit (20%) : Applies only to specific sectors including:
- Construction (NAICS 23)
- Food processing (NAICS 311)
- Hospital services (NAICS 622)
- Residential and nursing care (NAICS 623)
Employers that exceed these limits will see their LMIA applications denied.
Caregivers Also Affected by New Rules
The updated rules further apply to various caregiver and healthcare roles often recruited under the low-wage stream. These positions include:
- NOC 31301 – Registered or psychiatric nurses
- NOC 32101 – Practical nurses
- NOC 44100 – Home childcare providers
- NOC 44101 – Personal care attendants and in-home support workers
These roles are under review for future inclusion in targeted policy changes by ESDC and IRCC.
Policy Motivation: Program Integrity and Economic Balance
Canada’s federal authorities have been under mounting pressure to limit excessive use of temporary labor. Concerns include wage suppression, worker mistreatment, and strain on affordable housing and public services. In 2024, the TFWP was heavily criticized for enabling employers to bypass local talent, prompting an overhaul to restore balance.
In response, key measures have already been adopted:
- LMIAs now valid for just six months, not twelve
- Reduced duration of employment for low-wage positions
- Introduction of annual caps on new temporary workers
- Revoked permissions for visitors to convert their status into work permits under TFWP
Looking Ahead: Employers Must Strategize More Carefully
With more stringent criteria in place, Canadian employers must now plan their hiring practices around regional labor conditions, sector-specific limits, and updated wage standards. Failing to comply could mean delays—or complete ineligibility—to hire foreign labor.
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