Canada Raises Wage Bar for Temporary Workers by 4% Impacting Indian Immigrants

Key Takeaways

• Canada raises TFWP wage thresholds by 4% effective June 27, 2025, aligning with inflation and cost of living.
• Indian immigrants hold 41,115 TFWP permits in 2023, the largest group affected by wage increases.
• Employers face higher labor costs and stricter LMIA processes due to new wage and documentation rules.

Canada’s recent decision to raise the minimum wage thresholds for the Temporary Foreign Worker Program (TFWP) marks a significant shift in the country’s approach to temporary labor migration. This policy, effective June 27, 2025, directly affects both employers and workers, with Indian immigrants—who make up the largest group of TFWs in Canada—facing some of the most immediate impacts. This analysis examines the purpose and scope of the wage increase, the methodology behind its implementation, key findings from recent data, and the broader implications for Indian immigrants, employers, and the Canadian labor market.

Purpose and Scope

The main purpose of the wage increase under the TFWP is to ensure that temporary foreign workers receive fair pay that keeps up with inflation and the rising cost of living in Canada 🇨🇦. By raising the minimum wage thresholds for the Labour Market Impact Assessment (LMIA) process, the Canadian government aims to:

• Protect Canadian workers by preventing employers from hiring foreign workers at wages lower than what Canadians would accept.
• Ensure fair treatment of temporary foreign workers by aligning their wages with current economic realities.
• Maintain the integrity of the TFWP by reducing program misuse and fraud.

This policy change is especially important for Indian immigrants, who represent a significant portion of the TFWP workforce. The analysis covers the impact of the wage increase on Indian workers, employers, and the broader labor market, while also considering historical trends and future outlooks.

Methodology

This analysis draws on official government announcements, recent wage data, and stakeholder perspectives to present a clear picture of the policy change. Key sources include:

• Government of Canada 🇨🇦 updates on TFWP wage thresholds and LMIA requirements
• Data on TFWP permit holders by nationality and sector
• Statements from labor market experts, advocacy groups, and government officials
• Analysis from VisaVerge.com, which provides authoritative immigration news and guidance

The methodology involves reviewing policy documents, wage tables, and recent changes to LMIA procedures. It also considers feedback from Indian immigrant communities and employers who rely on the TFWP.

Key Findings

1. Wage Increase Details

• Effective Date: June 27, 2025
• Increase Amount: Approximately 4% overall, matching inflation and cost-of-living changes
• Scope: Applies to all new LMIA applications under the TFWP, affecting both high-wage and low-wage streams

2. Impact on Indian Immigrants

• Largest Group Affected: In 2023, Indian nationals held 41,115 of the 188,500 TFWP permits, making them the largest group in the program.
• Low-Wage Job Access: The higher wage bar means some low-wage jobs may no longer qualify for LMIA approval, especially in cities with unemployment rates above 6%. This could reduce job opportunities for Indian immigrants in certain sectors.
• Provincial Differences: Provinces with higher minimum wages, such as Nova Scotia, have also raised their thresholds, further affecting job eligibility for TFWs.

3. Employer Responsibilities

• Higher Labor Costs: Employers must now offer higher wages to meet the new LMIA requirements, which may increase operating costs, especially for businesses relying on low-wage labor.
• Stricter Application Process: Employers can no longer use attestations from accountants or lawyers to prove business legitimacy, making the LMIA process more rigorous.

4. Program Integrity and Worker Protections

• Reduced Exploitation Risks: The wage increase helps prevent employers from underpaying foreign workers, aligning with Canada’s commitment to fair labor standards.
• Tighter Controls: The ban on attestations and higher wage thresholds are designed to reduce fraud and ensure that the TFWP serves genuine labor shortages.

Data Presentation and Visual Descriptions

To better understand the impact of these changes, it’s helpful to look at the data on TFWP permit holders and wage trends.

TFWP Permit Holders by Nationality (2023)

• Total TFWP Permits: 188,500
• Indian Nationals: 41,115 (largest group)
• Other Major Groups: Workers from the Philippines, Mexico, and Jamaica

Wage Threshold Changes

• June 2025: 4% increase in minimum wage thresholds for LMIA applications
• November 2024: 20% increase over the median wage for high-wage stream positions
• Provincial Example: Nova Scotia raised its minimum wage from $15.30 to $15.65 per hour (2.4% increase)

High-Wage vs. Low-Wage Streams

• High-Wage Stream: Jobs paying at or above the median wage for the province or territory; allows for longer work permits and easier pathways to permanent residency.
• Low-Wage Stream: Jobs paying below the median wage; subject to stricter caps and shorter permit durations.

Comparisons, Trends, and Patterns

Historical Context

The TFWP has long been a key pathway for temporary labor migration to Canada 🇨🇦, especially for Indian immigrants. Over the years, the program has undergone several changes to address concerns about worker exploitation, wage suppression, and program misuse.

• Periodic Wage Adjustments: Wage thresholds have been regularly updated to reflect economic conditions. The recent 2024 and 2025 increases continue this trend, with a stronger focus on inflation adjustment and worker protections.
• Program Integrity Measures: The ban on attestations for business legitimacy and stricter LMIA requirements reflect a broader effort to ensure that only genuine employers can access the program.

Current Trends

• Rising Wages: The 4% wage increase is part of a broader pattern of aligning TFWP wages with inflation and cost-of-living changes.
• Tighter Labor Market Controls: The government is placing more emphasis on protecting Canadian workers and ensuring that temporary foreign workers are not used to undercut local wages.
• Impact on Low-Wage Sectors: Sectors that rely heavily on low-wage foreign labor, such as agriculture, hospitality, and food processing, may face labor shortages or higher costs as a result of the new wage thresholds.

Patterns Affecting Indian Immigrants

• Concentration in Low-Wage Jobs: Many Indian immigrants in the TFWP work in sectors that are most affected by the wage increase, making them more vulnerable to job losses or reduced opportunities.
• Potential Shift to High-Wage Roles: Some Indian workers may benefit from higher wages if they qualify for high-wage stream positions, but access to these jobs may be limited by education, experience, or language requirements.

Evidence-Based Conclusions

Positive Outcomes

• Improved Worker Protections: The wage increase helps ensure that temporary foreign workers, including Indian immigrants, receive fair pay and are less likely to be exploited.
• Alignment with Economic Realities: By tying wage thresholds to inflation, the policy keeps the TFWP relevant and fair for both workers and employers.
• Stronger Program Integrity: Stricter LMIA requirements and the ban on attestations help prevent fraud and misuse of the program.

Challenges and Limitations

• Reduced Access to Low-Wage Jobs: The higher wage bar may make it harder for Indian immigrants and other foreign workers to access certain jobs, especially in regions with high unemployment.
• Increased Costs for Employers: Businesses that rely on low-wage labor may struggle to meet the new wage requirements, potentially leading to higher prices for consumers or reduced services.
• Regional Variations: Differences in provincial minimum wages and labor market conditions mean that the impact of the wage increase will vary across Canada 🇨🇦.

Stakeholder Perspectives

• Government: The Canadian government maintains that the wage increase is necessary to protect both Canadian and foreign workers, ensure fair labor practices, and respond to economic changes.
• Employers: Some employers, especially in low-wage sectors, express concern about rising labor costs and potential labor shortages.
• Indian Immigrant Community: Advocacy groups worry that the new wage thresholds could push some Indian workers into informal or precarious employment if they cannot qualify for LMIA-approved jobs.

Limitations of the Analysis

• Short-Term Data: The full impact of the wage increase may not be clear until several months after implementation, as employers and workers adjust to the new requirements.
• Sector-Specific Effects: The analysis focuses on overall trends but may not capture the unique challenges faced by specific industries or regions.
• Changing Economic Conditions: Future changes in inflation, unemployment, or labor demand could affect the effectiveness and impact of the wage increase.

Practical Guidance for Employers and Workers

For Employers

• Review Wage Tables: Employers should consult the latest LMIA wage tables on the Government of Canada’s official website to ensure compliance with new thresholds. The official LMIA wage tables and application guidance can be found on the Government of Canada’s Temporary Foreign Worker Program page.
• Update LMIA Applications: All new LMIA applications must reflect the updated wage rates. Employers should also be prepared for stricter documentation requirements due to the ban on attestations.
• Plan for Higher Labor Costs: Businesses should budget for increased wages and consider the impact on staffing and operations, especially in sectors that rely heavily on temporary foreign workers.

For Temporary Foreign Workers (Including Indian Immigrants)

• Check Job Eligibility: Workers should verify that job offers meet the new wage thresholds before applying for a work permit under the TFWP.
• Understand High-Wage vs. Low-Wage Streams: Knowing the difference between these streams can help workers target jobs that offer better pay and longer permit durations.
• Seek Support: Indian immigrants and other TFWs can reach out to community organizations or legal aid services for help understanding their rights and navigating the application process.

For Both Employers and Workers

• Stay Informed: Regularly check official government updates for any changes to wage thresholds or LMIA requirements.
• Use Official Forms: When applying for an LMIA, employers must use the correct forms, such as the Application for a Labour Market Impact Assessment. Always use the latest version from the official website.

Future Outlook

The Canadian government is expected to keep monitoring the TFWP to ensure that it meets the needs of the labor market while protecting both Canadian and foreign workers. Further adjustments to wage thresholds or program rules may be made based on economic conditions and stakeholder feedback.

• Ongoing Dialogue: There will likely be continued discussions between the government, employers, and immigrant communities to address any challenges arising from the wage increase.
• Potential for Further Increases: If inflation continues to rise, additional wage adjustments may be necessary to keep the TFWP fair and effective.

Conclusion

Canada’s 4% wage increase for temporary foreign workers under the TFWP, effective June 27, 2025, represents a major policy shift with wide-ranging implications. Indian immigrants, who make up the largest group of TFWs, are particularly affected by the new wage thresholds, especially in low-wage sectors. While the policy aims to ensure fair pay and protect both Canadian and foreign workers, it also presents challenges for employers and may limit job opportunities for some workers.

Employers and workers alike must adapt to the new requirements by staying informed, updating applications, and seeking support when needed. As reported by VisaVerge.com, these changes reflect Canada’s ongoing commitment to fair labor standards and program integrity, but their full impact will depend on how all stakeholders respond in the months ahead.

For the most current information on wage thresholds, LMIA applications, and TFWP requirements, visit the Government of Canada’s Temporary Foreign Worker Program page.

By understanding these changes and preparing accordingly, both employers and Indian immigrants can better navigate the evolving landscape of temporary labor migration in Canada 🇨🇦.

Learn Today

Temporary Foreign Worker Program (TFWP) → A Canadian program allowing employers to hire temporary foreign workers to meet labor shortages.
Labour Market Impact Assessment (LMIA) → A government process assessing the effect of hiring foreign workers on Canada’s labor market.
High-Wage Stream → TFWP category for jobs paying at or above the provincial median wage with longer permits.
Low-Wage Stream → TFWP category for jobs paying below the median wage with capped permit durations.
Attestation → A formal statement used to prove business legitimacy, now banned in LMIA applications.

This Article in a Nutshell

Canada’s 4% wage increase under the Temporary Foreign Worker Program starts June 27, 2025, affecting Indian immigrants and employers. The change aims to ensure fair pay, reduce exploitation, and uphold program integrity amid inflation and labor market shifts. Employers must adapt to stricter LMIA requirements and higher wage obligations.
— By VisaVerge.com