Canada Updates LMIA Wage

Canada Updates LMIA Wage Thresholds for Temporary Foreign Workers: What Employers Need to Know

Canada has officially updated the median wage thresholds for the Temporary Foreign Worker Program (TFWP), introducing new provincial and territorial wage requirements effective July 17, 2026. The changes, announced by Employment and Social Development Canada (ESDC), will determine whether employers must submit a Labour Market Impact Assessment (LMIA) under the high-wage or low-wage stream. 

While the update may appear to be a routine annual adjustment, it has important implications for Canadian employers planning to hire foreign workers. Businesses must now ensure that offered wages meet the revised provincial thresholds while remaining consistent with prevailing wages for similar occupations. Offering higher wages solely to qualify for a preferred LMIA stream could result in a refused application. 

For employers and foreign workers alike, understanding these changes is essential before submitting new LMIA applications. 

At ImmigCanada Immigration Consulting Services, our Regulated Canadian Immigration Consultant (RCIC), Eivy Joy Quito, recommends reviewing recruitment plans immediately to ensure job offers comply with the updated wage rules before filing an application. 

Why Has Canada Updated the LMIA Wage Thresholds? 

Every year, ESDC reviews provincial and territorial wage data using Statistics Canada’s Labour Force Survey. The updated hourly wage thresholds reflect changes in labour market conditions and help determine which LMIA stream an employer must use. 

The wage threshold is calculated using the provincial or territorial median hourly wage plus an additional twenty percent. This ensures that employers offering above-average wages follow the requirements for the high-wage stream, while lower-paying positions remain under the low-wage stream. 

The updated thresholds apply to all LMIA applications received on or after July 17, 2026. 

Updated LMIA Wage Thresholds for 2026 

Several provinces have introduced higher wage thresholds. 

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Some of the most notable changes include: 

Province Previous Threshold New Threshold 
Ontario $36.00 $36.92 
Alberta $36.00 $37.50 
British Columbia $36.60 $38.40 
Quebec $34.62 $36.00 
Manitoba $30.16 $31.33 
Saskatchewan $33.60 $34.62 
Nova Scotia $30.00 $31.96 
Prince Edward Island $30.00 $31.20 

Source: Canada Updates LMIA Wage Thresholds for Temporary Foreign Workers

Some territories also received increases, while the Northwest Territories remained unchanged at $48.00 per hour. 

These updated figures determine which LMIA stream employers must use when submitting new applications. 

How Wage Thresholds Affect LMIA Applications 

The wage offered for a position directly determines the LMIA stream. 

If the offered wage is: 

  • Equal to or above the provincial threshold, the employer must apply under the High-Wage Stream.  
  • Below the threshold, the application falls under the Low-Wage Stream.  

Each stream has different employer obligations, recruitment requirements, and compliance measures. 

This means employers should review wage offers before preparing their applications to avoid delays or refusals. 

Higher Wages Alone Will Not Guarantee Approval 

One of the most important clarifications in the updated guidance is that employers cannot simply increase wages to qualify for the High-Wage Stream. 

ESDC clearly states that wages offered to temporary foreign workers must be comparable to those paid to Canadian citizens or permanent residents performing the same work in the same location with similar experience. 

Artificially increasing wages only to meet the threshold or avoid program requirements could result in a negative LMIA decision. 

This reinforces the government’s focus on protecting labour market integrity while ensuring fair treatment for both Canadian and foreign workers. 

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What Employers Should Consider Before Applying 

The updated wage thresholds mean employers should carefully review several areas before submitting an LMIA. 

These include: 

  • Confirming the correct provincial wage threshold.  
  • Comparing the offered wage with prevailing wage data.  
  • Ensuring recruitment requirements are completed.  
  • Preparing accurate job descriptions.  
  • Verifying supporting documentation.  
  • Planning applications well in advance of hiring timelines.  

Employers should also remember that advertising requirements must be completed before an LMIA application is submitted. Depending on the stream, advertisements may need to run for 14 days to eight weeks, and this period is not included in official processing times. 

Impact on Temporary Foreign Workers 

Although the policy primarily targets employers, foreign workers are also affected. 

Workers should ensure that: 

  • Their employer is using the correct LMIA stream.  
  • Job offers meet provincial wage requirements.  
  • Work permit renewals are planned early.  
  • Employment conditions remain consistent throughout the application.  

Applicants relying on employer-supported work permits may experience delays if employers submit applications under the wrong stream. 

Why This Matters for Canada’s Labour Market 

Canada continues to rely on temporary foreign workers to address shortages across sectors including healthcare, agriculture, hospitality, transportation, manufacturing, and construction. 

By updating wage thresholds annually, ESDC aims to: 

  • Reflect changing labour market conditions.  
  • Protect wage standards for Canadian workers.  
  • Promote fair compensation.  
  • Improve compliance within the Temporary Foreign Worker Program.  
  • Maintain confidence in Canada’s immigration system.  

For employers experiencing labour shortages, accurate planning has become increasingly important as compliance requirements continue to evolve. 

What Employers Should Do Next 

Businesses planning to hire international workers should take immediate action. 

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Recommended steps include: 

  • Review the updated provincial wage threshold.  
  • Compare wages against prevailing wage data.  
  • Prepare recruitment documentation early.  
  • Confirm which LMIA stream applies.  
  • Submit complete applications with accurate supporting documents.  
  • Seek professional immigration advice if uncertain.  

Preparing correctly from the beginning can help reduce processing delays and improve application success. 

The 2026 LMIA wage threshold update introduces important changes for employers across Canada. While the adjustments are relatively modest in most provinces, they can significantly affect which LMIA stream applies and whether an application meets federal requirements. 

Employers should not view the threshold simply as a number to exceed. Instead, wages must accurately reflect local labour market conditions and comply with ESDC’s prevailing wage requirements. 

As Canada’s labour market continues to evolve, staying informed about LMIA policies will remain essential for employers hiring international talent. 

If you are planning to hire a foreign worker or submit an LMIA application, ImmigCanada’s Regulated Canadian Immigration Consultant (RCIC), Eivy Joy Quito, can help ensure your application complies with the latest federal requirements. 

Frequently Asked Questions

1. When do the new LMIA wage thresholds take effect? 

The updated wage thresholds apply to all LMIA applications received on or after July 17, 2026

2. What is Ontario’s new LMIA wage threshold? 

Ontario’s new hourly wage threshold is $36.92, up from $36.00. 

3. Can employers increase wages simply to qualify for the High-Wage Stream? 

No. ESDC requires wages to match prevailing wage standards. Artificially increasing wages to qualify for a specific stream may result in an LMIA refusal. 

4. Why are LMIA wage thresholds updated? 

The thresholds are based on provincial median hourly wages from Statistics Canada’s Labour Force Survey, plus an additional twenty percent. 

5. Which provinces have the highest wage thresholds? 

Among the provinces, British Columbia ($38.40) and Alberta ($37.50) now have some of the highest LMIA wage thresholds.