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Canada Raises Wage Thresholds for TFWP Low-Wage Work Permits in July 2026

New Provincial and Territorial Wage Thresholds for Low-Wage TFWP (2026)

The federal government has raised the minimum hourly wage thresholds for the low-wage stream of the Temporary Foreign Worker Program (TFWP). Employers in high-unemployment regions cannot hire or renew low-wage TFWP work permits for roles paying less than the amounts below.

Province / Territory	Wage threshold as of July 17, 2026 (CAD/hour)	Previous wage threshold (CAD/hour)
Alberta	$37.50	$36.00
British Columbia	$38.40	$36.60
Manitoba	$31.33	$30.16
New Brunswick	$31.73	$30.00
Newfoundland and Labrador	$33.60	$32.40
Northwest Territories	$48.00	$48.00
Nova Scotia	$31.96	$30.00
Nunavut	$45.00	$42.00
Ontario	$36.92	$36.00
Prince Edward Island	$31.20	$30.00
Quebec	$36.00	$34.62
Saskatchewan	$34.62	$33.60
Yukon	$45.60	$44.40

Key policy point: For the low-wage stream, wage thresholds are now set at 120% of the median wage for each province or territory, rather than at the median wage itself.

High-Unemployment Regions Subject to Low-Wage TFWP Work Permit Freeze

The federal government has imposed a work permit freeze on low-wage TFWP roles paying beneath the new thresholds in regions with unemployment of 6% or higher.

Census Metropolitan Area	Province / Territory	Unemployment rate (%)
St. John’s	Newfoundland and Labrador	7.3
Moncton	New Brunswick	8.1
Montréal	Quebec	6.8
Ottawa–Gatineau	Ontario / Quebec	6.7
Belleville–Quinte West	Ontario	6.7
Peterborough	Ontario	7.0
Oshawa	Ontario	8.5
Toronto	Ontario	7.3
Hamilton	Ontario	6.9
Kitchener–Cambridge–Waterloo	Ontario	8.1
Brantford	Ontario	6.2
Guelph	Ontario	7.4
London	Ontario	7.8
Windsor	Ontario	7.9
Barrie	Ontario	7.9
Greater Sudbury	Ontario	6.2
Saskatoon	Saskatchewan	6.5
Calgary	Alberta	7.0
Red Deer	Alberta	7.2
Edmonton	Alberta	7.2
Kelowna	British Columbia	7.5
Kamloops	British Columbia	7.0
Chilliwack	British Columbia	7.9
Abbotsford–Mission	British Columbia	8.0
Vancouver	British Columbia	6.7
Nanaimo	British Columbia	6.5

Practical implication for employers: If your business operates in one of these regions and offers wages below the new threshold, you cannot initiate new low-wage TFWP hires or renew existing low-wage TFWP work permits until wages meet or exceed the applicable threshold.

Hiring Below the Threshold: Rules for Employers Outside High-Unemployment Regions

Workforce Caps for Low-Wage TFWP Hires

Standard cap: 10% of workers per work location can be hired through the TFWP low-wage stream.
Higher cap for certain sectors: 20% cap applies to some exempt positions, such as construction and food manufacturing.
Temporary rural measure (April 1, 2026 – March 31, 2027): Cap raised to 15% for rural employers in provinces that opt in.

Recruitment and Advertising Requirements (Low-Wage vs High-Wage)

Job advertising duration: Low-wage stream requires at least 8 weeks of advertising in the last 3 months; high-wage stream requires 4 weeks.
Targeted recruitment of underrepresented groups: Employers must recruit Indigenous peoples, persons with disabilities, and other underrepresented groups.
Youth recruitment: Employers must target youth aged 15–30.
Job Bank invitations: Employers must invite all Job Bank matches rated two stars or more (compared to four stars or more under the high-wage stream).

Housing and Transportation Obligations

Provide suitable and affordable housing for temporary foreign workers.
Cover round-trip transportation costs from the worker’s home country to Canada and back.

Understanding the Temporary Foreign Worker Program (TFWP)

LMIA Requirement and Employer-Specific Work Permits

A positive or neutral Labour Market Impact Assessment (LMIA) is required before a TFWP work permit can be issued or renewed.
TFWP work permits are employer-specific, authorizing work only for the employer and role specified on the permit.

Wage Rules for Both Low-Wage and High-Wage Streams

Employers must pay the higher of the median regional wage for the occupation or equivalent compensation to Canadian citizens and permanent residents in the same role at the same work location.

Recent Federal Policy Changes Affecting the TFWP (2024–2026)

Key Measures Introduced in 2024

Moratorium on low-wage LMIAs in regions with over 6% unemployment.
Wage threshold for the low-wage stream raised to 120% of the regional median wage.
Workforce caps for the low-wage stream lowered from 20% to 10%.
Annual admissions targets introduced for temporary residents, including TFWP work permit holders.

Admissions Targets and Trends for 2026

TFWP admissions in 2026 have fallen by over 50% relative to 2024, with a target of 60,000 TFWP work permit holders.
International Mobility Program (IMP) admissions target is 170,000, with admissions down 69% relative to 2024.
IMP work permits promote social and cultural benefits to Canada and do not require LMIAs.

Note: Admissions comparisons are based on the four-month period January–April for each year, using the most recent available data on the government’s temporary residents page.

Practical Guidance for Employers: How to Stay Compliant Under the New TFWP Wage Rules

Step-by-Step Checklist for Employers

Confirm your region’s unemployment rate and status: Check if your business is in a census metropolitan area with ≥6% unemployment and ensure wages meet the new threshold.
Verify wage alignment: Compare offered wages to provincial/territorial thresholds and median regional wages; adjust if necessary.
Assess workforce caps: Ensure you remain within the 10%, 20%, or 15% caps depending on your sector and rural status.
Plan recruitment and advertising: Schedule at least 8 weeks of advertising and target underrepresented groups and youth; comply with Job Bank invitation rules.
Prepare housing and transportation: Secure suitable and affordable housing and budget for round-trip transportation.
Coordinate LMIA application: Gather documentation on recruitment, wages, housing, and transportation to support a compliant LMIA application.

Impact on Foreign Workers and Canadian Labour Markets

The new wage thresholds and caps aim to protect Canadian workers from wage suppression, encourage recruitment of local youth and underrepresented groups, and limit reliance on low-wage temporary foreign labour in high-unemployment regions. For foreign workers, the changes mean higher minimum wage standards, more employer obligations, and potentially fewer low-wage TFWP opportunities in certain regions.

Frequently Asked Questions (FAQ)

Q1. Can I still hire low-wage temporary foreign workers if my region’s unemployment rate is below 6%?

Yes. Employers outside the listed high-unemployment regions can hire under the low-wage stream, provided they comply with wage thresholds, workforce caps, recruitment requirements, and housing/transport obligations.

Q2. What happens if I pay below the new wage threshold in a high-unemployment region?

You cannot initiate new low-wage TFWP hires or renew existing low-wage TFWP work permits for roles paying below the threshold. Wages must be raised to at least the threshold to proceed.

Q3. Do the new rules affect high-wage TFWP positions?

The wage thresholds discussed here apply to the low-wage stream. However, all TFWP positions must meet the requirement to pay the higher of the median regional wage or equivalent compensation to Canadian workers in the same role.

Q4. How do the TFWP changes relate to the International Mobility Program (IMP)?

The IMP operates under a different mandate, focusing on social and cultural benefits and does not require LMIAs. Admissions targets for IMP permits are higher than for TFWP in 2026, but IMP admissions have also declined compared to 2024.

Q5. Where can I find official data on unemployment rates and temporary resident admissions?

Employers should consult the Government of Canada’s official labour market and temporary residents data pages for updated unemployment statistics and admissions figures.

Source: Canada raises wage thresholds for TFWP work permits – CIC News

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