Canada LMIA work permit wage increases from November 08

Surya Rathee
[Published 15 Nov, 2024 | 04:26 AM]
About Author - 5 min read
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Starting November 08, 2024, Canada has updated the wage requirements for its Labour Market Impact Assessment (LMIA) program - which helps hire foreign workers. These changes apply to employers in all provinces and territories.

The new wage rules will affect whether a job is classified as high-wage or low-wage under the Temporary Foreign Worker Program (TFWP). The wage thresholds have been increased by 20% making it more expensive for employers to hire foreign workers in some cases.

This step reflects Canada’s efforts to ensure fair play, considering rising inflation and changes in the economy. As a result, businesses across different industries may need to adjust their strategies when hiring foreign workers looking to work in Canada.

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As of November 08, 2024, employers offering a wage to a temporary foreign worker that’s:

• At or above the provincial or territorial wage threshold, must apply under the stream for high-wage positions.

• Below the provincial or territorial wage threshold, must apply under the stream for low-wage positions.

Employers will now need to ensure that their wage offerings align with the updated thresholds when hiring temporary foreign workers.

Wage threshold by province or territory

Impact on employers and foreign workers

The updated wage thresholds aim to ensure foreign workers are paid fairly, matching the local job market. Here’s how these changes might affect employers and Temporary Foreign Workers (TFWs):

Impact on employers

• Budget and salary planning: Businesses will need to review and possibly increase their budgets to offer higher wages for roles requiring foreign workers.

• Meeting high-wage stream requirements: With wages rising to 20%, some businesses may now qualify for the high-wage stream by increasing salaries, which has different application processes and rules compared to the low-wage stream, such as including plans to train local workers.

• Sector challenges: Industries like agriculture, hospitality, construction, and retail, which depend heavily on foreign workers, may see higher running costs due to the new wage rules.

• Regional impact: In areas where low-wage labour is crucial, companies might need to rethink their hiring and salary strategies.

Impact on foreign workers

• Improved wage standards: The new wage thresholds aim to ensure that foreign workers receive pay that matches Canada’s cost of living and economic trends.

• Better integration opportunities: With higher wages, foreign workers may find it easier to settle into Canadian society, supporting a smoother transition if they choose to apply for Canada PR.

• Competitive pay: Foreign workers coming to Canada can expect wages more in line with Canadian workers, helping them to feel financially secure.

• Increased eligibility for immigration: Higher earnings can also improve a worker’s chances of qualifying for economic immigration programs, as these often prioritize applicants with high-wage positions.

As Canada advances its immigration and labour policies, the updated wage thresholds under the Temporary Foreign Worker Program (TFWP) mark a critical move toward fostering a more inclusive and economically balanced workforce. For both employers and temporary foreign workers, staying informed and proactive is essential to navigate these changes effectively and ensure adherence to Canada’s evolving employment standards.

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Source: canada.ca