Canada Raises Temporary Foreign Worker Wage Thresholds

Canada has increased wage thresholds under the Temporary Foreign Worker Program (TFWP) by an average of just over 4%.

The new thresholds took effect on July 17, 2026 and affect how employers submit Labour Market Impact Assessment, or LMIA, applications.

The thresholds determine whether a position falls under the High-Wage stream or the Low-Wage stream.

Employers must compare the offered wage with the applicable threshold in the province or territory where the foreign worker will be employed.

If the wage meets or exceeds the local threshold, the employer can submit the LMIA application under the High-Wage stream.

However, positions that no longer meet the revised threshold will be assessed under the Low-Wage stream.

Some LMIA Applications May Move to Low-Wage Stream

The increase means some jobs that previously qualified under the High-Wage stream may now fall below the required wage level.

As a result, employers may need to apply through the Low-Wage stream instead.

This is important because the Low-Wage stream comes with additional program requirements and restrictions.

Employers planning to hire foreign workers should therefore check the latest provincial or territorial wage threshold before submitting an LMIA application.

Employers Must Pay Market-Based Wages

Employers should also ensure that salaries offered to temporary foreign workers reflect market rates for comparable Canadian workers.

The wage should be consistent with what employees performing similar work receive in the relevant occupation and location.

Employers should not simply increase an offered wage to cross the High-Wage threshold.

If authorities determine that the wage was raised mainly to qualify for the High-Wage stream and does not reflect the actual market rate, the LMIA application could receive a negative decision.

The July 17 changes therefore raise the salary benchmark for employers using Canada’s Temporary Foreign Worker Program and may push some future applications into the more restrictive Low-Wage stream.