Canada Raises Temporary Foreign Worker Wage Requirements in 2026: What Foreign Workers and Employers Need to Know
Canada has introduced another major change to its Temporary Foreign Worker Program (TFWP), increasing the minimum wage requirements for employers hiring under the low-wage stream. The new rules, which took effect on July 17, 2026, could affect thousands of employers and foreign workers hoping to secure or renew work permits this year.
For many applicants, these changes mean that jobs paying below the newly established provincial wage thresholds may no longer qualify for Labour Market Impact Assessments (LMIAs) in several Canadian regions with high unemployment.
If you’re planning to work in Canada through the TFWP, understanding these updated rules is now more important than ever.
Canada Increases Low-Wage TFWP Salary Thresholds
The federal government has adjusted the hourly wage requirements for the low-wage stream across most provinces and territories.
The revised thresholds are based on 120% of each province or territory’s median hourly wage, meaning employers must now offer higher salaries before they can access the low-wage stream of the Temporary Foreign Worker Program.
Some of the updated minimum hourly wages now include:
| Province/Territory | New Hourly Threshold |
|---|---|
| Alberta | $37.50 |
| British Columbia | $38.40 |
| Manitoba | $31.33 |
| New Brunswick | $31.73 |
| Newfoundland and Labrador | $33.60 |
| Northwest Territories | $48.00 |
| Nova Scotia | $31.96 |
| Nunavut | $45.00 |
| Ontario | $36.92 |
| Prince Edward Island | $31.20 |
| Quebec | $36.00 |
| Saskatchewan | $34.62 |
| Yukon | $45.60 |
For employers, this means offering wages below these provincial thresholds may prevent them from hiring foreign workers through the low-wage stream in many parts of Canada.
New Hiring Restrictions in High-Unemployment Regions
The wage increase comes alongside continued restrictions affecting areas with unemployment rates of 6% or higher.
In these regions, employers generally cannot submit new LMIA applications or renew existing low-wage positions if the offered salary falls below the required provincial threshold.
Several major cities are currently affected, including:
- Toronto
- Ottawa-Gatineau
- Montréal
- Hamilton
- London
- Oshawa
- Vancouver
- Calgary
- Edmonton
- Kitchener-Cambridge-Waterloo
- Windsor
- Saskatoon
- Kelowna
- Abbotsford-Mission
- Chilliwack
- Kamloops
- Nanaimo
- Barrie
- Peterborough
- Guelph
- Red Deer
- Belleville–Quinte West
- Brantford
- Greater Sudbury
- Moncton
- St. John’s
For employers operating within these labour markets, hiring foreign workers under the low-wage stream has become significantly more restrictive.
Employers Outside Restricted Areas Can Still Hire
Businesses located outside high-unemployment regions can still recruit foreign workers under the low-wage stream, but they must comply with several additional federal requirements.
These include:
- Limits on the percentage of employees hired through the TFWP.
- Longer recruitment and advertising periods before applying for an LMIA.
- Greater efforts to recruit Canadians from underrepresented groups.
- Youth-focused recruitment initiatives.
- Inviting qualified Job Bank candidates to apply before hiring internationally.
Certain sectors, including construction and food manufacturing, continue to benefit from higher workforce caps than many other industries.
In addition, a temporary federal measure running until March 31, 2027, allows eligible rural employers in participating provinces to hire a slightly higher percentage of temporary foreign workers.
Housing and Transportation Remain Employer Responsibilities
Employers using the low-wage stream must continue providing important support for foreign workers.
In most cases, they are expected to:
- Arrange suitable and affordable accommodation.
- Cover round-trip transportation costs between Canada and the worker’s home country.
- Meet all employment standards applicable to Canadian workers.
These obligations remain a key condition of participating in the Temporary Foreign Worker Program.
Understanding the Temporary Foreign Worker Program
The Temporary Foreign Worker Program allows Canadian employers to recruit international workers when qualified Canadian citizens or permanent residents are unavailable.
Before hiring, employers generally must obtain a positive or neutral Labour Market Impact Assessment (LMIA) demonstrating that bringing in a foreign worker will not negatively affect Canada’s labour market.
A TFWP work permit is employer-specific, meaning workers are authorized to work only for the employer and position listed on their permit.
Whether hiring under the low-wage or high-wage stream, employers must always pay whichever is higher:
- The official regional median wage for the occupation; or
- The wage paid to Canadian employees performing the same job at the same location.
Why Canada Is Tightening the Program
The federal government has gradually introduced stricter rules after concerns that excessive reliance on temporary foreign labour could contribute to wage suppression and increased unemployment among Canadian workers, particularly young people.
Since 2024, several significant reforms have been introduced, including:
- Suspending many low-wage LMIA applications in high-unemployment regions.
- Raising the wage threshold for the low-wage stream.
- Reducing employer workforce caps under the low-wage category.
- Introducing annual admission targets for temporary residents.
These measures are part of Canada’s broader strategy to better balance labour shortages with opportunities for domestic workers.
Temporary Foreign Worker Admissions Continue to Decline
Canada is also reducing the overall number of temporary foreign workers entering the country.
The government plans to admit approximately 60,000 TFWP work permit holders during 2026, representing a significant decline compared to previous years.
Admissions under the International Mobility Program (IMP) have also fallen sharply. Unlike the TFWP, most IMP work permits do not require an LMIA because they are issued to support Canada’s broader economic, cultural, or international objectives.
What This Means for Foreign Workers
Anyone planning to work in Canada should carefully review current wage requirements before accepting a job offer.
Positions that previously qualified under the low-wage stream may no longer be eligible in certain cities, especially where unemployment remains above the federal threshold.
Foreign workers may improve their chances by targeting employers offering wages above the new limits, exploring opportunities in regions with lower unemployment, or considering occupations eligible under the high-wage stream or the International Mobility Program.
As Canada continues to adjust its immigration and labour market policies, staying informed about these evolving requirements will be essential for both employers and prospective temporary foreign workers.
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