Key Takeaways
• Canada raises Temporary Foreign Workers’ wages by 2% effective June 27, 2025 under the TFWP program.
• Employers must pay new provincial wage minimums or apply under low-wage stream with stricter rules.
• Recent changes include 10% cap on low-wage workers and no attestations to prove employer legitimacy.
Canada Raises Wages for Temporary Foreign Workers: What Employers and Workers Need to Know
Canada 🇨🇦 has announced a new wage increase for Temporary Foreign Workers (TFWs) under the Temporary Foreign Worker Program (TFWP), taking effect on June 27, 2025. This change means employers must now pay higher minimum wages to foreign workers they hire through the Labour Market Impact Assessment (LMIA) process. The increase is about 2% over the previous wage rates set in late 2024, affecting almost all provinces and territories.
This move is part of Canada’s ongoing efforts to ensure fair pay for foreign workers, keep up with inflation, and protect both Canadian and foreign employees. Here’s a detailed look at what this wage increase means, who it affects, and what steps employers and workers need to take.
What’s Changing: The 2025 Wage Increase for Temporary Foreign Workers
The most important change is the new minimum wage thresholds that employers must meet when hiring Temporary Foreign Workers. These new rates apply to all new LMIA applications submitted after June 27, 2025.
Key points:
– Effective Date: June 27, 2025
– Scope: Applies to new LMIA applications under the TFWP in almost every province and territory
– Increase Amount: About 2% higher than the wage rates set in late 2024
Examples of new wage thresholds:
– Ontario: Increased from CAD 34.07 to CAD 36.00 per hour
– British Columbia: Increased from CAD 34.62 to CAD 36.60 per hour
– Nunavut: Remains unchanged at CAD 42.00 per hour
– Other provinces like Quebec, Alberta, and Nova Scotia also saw moderate increases
Employers must now offer these higher wages to qualify for the high-wage stream of the TFWP. If they cannot meet these new wage levels, they must apply under the low-wage stream, which comes with stricter rules and limits.
Why Is Canada Raising Wages for Temporary Foreign Workers?
The Canadian government reviews and updates wage thresholds regularly to keep up with the cost of living and changes in the economy. The goal is to make sure Temporary Foreign Workers are paid fairly and to prevent employers from using the program to undercut Canadian wages.
Main reasons for the wage increase:
– To reflect inflation: As the cost of living goes up, wages need to keep pace so workers can afford basic needs.
– To protect workers: Higher wages help prevent exploitation and ensure fair treatment for TFWs.
– To encourage hiring Canadians: By making foreign labor more expensive, the government hopes employers will first try to hire Canadian citizens or permanent residents.
– To improve working conditions: Better pay often leads to better treatment and safer workplaces.
As reported by VisaVerge.com, these changes are part of a broader effort to balance the needs of the Canadian labor market with the rights and well-being of foreign workers.
Background: Recent Changes to the Temporary Foreign Worker Program
This 2% wage increase is not the first major change to the TFWP in recent years. In November 2024, Canada 🇨🇦 made a significant adjustment by raising the minimum wage for TFWs in the high-wage stream by 20% over the median provincial wage. This was a big step to make sure foreign workers were paid fairly compared to local workers.
Other important changes include:
– Caps on low-wage foreign workers: Since late 2024, there is a 10% cap on low-wage foreign workers nationwide, and a 20% cap in critical sectors like healthcare and construction.
– No more attestations: Starting October 28, 2024, employers can no longer use letters from accountants or lawyers to prove their business is real. This is meant to stop misuse of the program and make sure only legitimate employers can hire TFWs.
These changes show the government’s focus on protecting both Canadian and foreign workers, making sure the program is fair, and preventing abuse.
How the Wage Increase Affects Employers
Employers who want to hire Temporary Foreign Workers must now follow the new wage rules. Here’s what they need to do:
Step-by-Step Guide for Employers
- Check the Wage Stream
- Employers must first see if the wage they plan to offer meets or is higher than the new provincial median wage threshold (now about 2% higher as of June 27, 2025).
- If the wage is at or above the threshold, they can apply under the high-wage stream.
- If the wage is below the threshold, they must use the low-wage stream, which has more restrictions.
- Apply for a Labour Market Impact Assessment (LMIA)
- Employers must submit an LMIA application showing the wage offered meets the new requirements.
- The LMIA is a document that proves there is a need for a foreign worker and that no Canadian worker is available for the job.
- Employers can find the official LMIA application forms and guidance on the Government of Canada’s website.
- Show Labour Market Need
- Employers must prove they tried to hire Canadians or permanent residents first.
- This often means advertising the job and showing there were no suitable local candidates.
- Follow the Caps
- Employers must make sure the number of low-wage foreign workers they hire does not go over the set caps (10% nationwide, 20% in certain sectors).
- No More Attestations
- Employers cannot use letters from accountants or lawyers to prove their business is real. They must provide other proof, like business licenses or tax documents.
- Wait for the LMIA Decision
- If the LMIA is approved, employers can then help the foreign worker apply for a work permit.
Important: Employers who do not follow these steps or who offer wages below the new thresholds risk having their LMIA applications refused.
What This Means for Temporary Foreign Workers
For Temporary Foreign Workers, the wage increase brings several benefits and some challenges:
Benefits
- Higher pay: Workers will earn more, helping them cover living costs in Canada 🇨🇦.
- Better protection: The new rules make it harder for employers to underpay or exploit foreign workers.
- Improved working conditions: Higher wages often lead to better treatment and safer workplaces.
Challenges
- Fewer job offers: Some employers may hire fewer foreign workers because of higher costs.
- Stricter rules: Workers must make sure their job offers meet the new wage requirements, or they may not qualify for a work permit.
Temporary Foreign Workers should always check the wage offered in their job contract and make sure it meets the latest government rules. If in doubt, they can visit the Employment and Social Development Canada (ESDC) website for up-to-date information.
Reactions from Stakeholders
The wage increase has led to mixed reactions from different groups:
Government and Officials
- Employment and Social Development Canada (ESDC): Confirmed the wage changes and said they are meant to keep up with inflation and protect workers.
- Minister Randy Boissonnault: Announced the earlier 20% wage increase in November 2024 and stressed the government’s commitment to fair treatment and program integrity.
Employers and Industry Groups
- Some employers are worried about higher labor costs, especially in sectors that rely heavily on Temporary Foreign Workers.
- Others agree that fair wages are important and support the changes, saying they help keep the program honest and fair.
Worker Advocacy Groups
- Most worker groups support the wage increase, saying it will help stop exploitation and improve working conditions for foreign workers.
- They also want the government to keep making changes that protect workers and offer more paths to permanent residency.
Policy Implications and Broader Impact
The wage increase is part of a larger set of reforms to the Temporary Foreign Worker Program. These changes aim to:
- Protect Canadian jobs: By making it more expensive to hire foreign workers, the government hopes employers will first look for Canadian workers.
- Prevent abuse: Stricter rules and higher wages make it harder for employers to misuse the program.
- Support fair wages: Regular wage updates help ensure all workers, Canadian and foreign, are paid fairly.
- Balance labor market needs: While protecting Canadian jobs, the program still allows employers to fill gaps when there are not enough local workers.
For employers: The new rules mean higher costs and more paperwork, but they also help ensure a level playing field and protect the reputation of the program.
For workers: The changes bring better pay and more protection, but may also mean fewer job openings as some employers adjust to the higher costs.
Looking Ahead: What’s Next for the Temporary Foreign Worker Program?
The Canadian government is expected to keep a close eye on the TFWP and make more changes as needed. Possible future developments include:
- Regular wage reviews: Wages may be updated every year or two to keep up with inflation and changes in the economy.
- More worker protections: The government may introduce new rules to further protect Temporary Foreign Workers from abuse.
- Pathways to permanent residency: There could be more options for TFWs to become permanent residents, especially in sectors where Canada 🇨🇦 needs more workers.
- Sector-specific changes: The government may adjust caps and rules for certain industries, depending on labor market needs.
Employers and workers should stay informed about these changes by checking official government websites and consulting with immigration professionals when needed.
Practical Guidance for Employers and Workers
For Employers:
– Always check the latest wage thresholds before making a job offer to a Temporary Foreign Worker.
– Make sure your LMIA application is complete and follows all new rules.
– Keep records of your efforts to hire Canadian workers first.
– Do not rely on attestations from accountants or lawyers to prove your business is real.
– Stay updated on sector-specific caps and other program changes.
For Temporary Foreign Workers:
– Review your job offer to make sure the wage meets the latest government requirements.
– Ask your employer for proof that they have a valid LMIA.
– If you have questions or concerns, visit the Employment and Social Development Canada (ESDC) website for official information.
– Know your rights and seek help if you feel you are being treated unfairly.
Where to Find More Information
For the most up-to-date details on the Temporary Foreign Worker Program, wage thresholds, and LMIA application process, visit the Employment and Social Development Canada (ESDC) official website.
You can also find information on work permit applications and related immigration matters on the Immigration, Refugees and Citizenship Canada (IRCC) website.
Conclusion
Canada’s decision to raise wages for Temporary Foreign Workers by 2% as of June 27, 2025, is a clear sign of its commitment to fair pay, worker protection, and a balanced labor market. While the changes mean higher costs and more rules for employers, they also bring better pay and more security for foreign workers. Both employers and workers should stay informed, follow the latest rules, and use official government resources to ensure a smooth process.
By keeping wages in line with inflation and tightening program rules, Canada 🇨🇦 aims to protect both its workers and its economy, making the Temporary Foreign Worker Program stronger and fairer for everyone involved.
Learn Today
Temporary Foreign Worker Program (TFWP) → Canada’s program allowing employers to hire foreign workers temporarily to fill labor market gaps.
Labour Market Impact Assessment (LMIA) → A document employers must obtain proving no Canadian worker can fill the job.
High-wage stream → Part of TFWP where foreign workers are paid at or above new provincial median wage thresholds.
Low-wage stream → Part of TFWP with lower wages but stricter caps and regulations on hiring foreign workers.
Attestation → Previously used letters from accountants or lawyers to prove employer legitimacy, now prohibited.
This Article in a Nutshell
Canada’s 2025 wage increase for Temporary Foreign Workers raises minimum pay by 2%, ensuring fair treatment and aligning wages with inflation and labour market needs.
— By VisaVerge.com
