High—Low Wage LMIA
Hire Temporary Foreign Workers for Your Critical Workforce Needs
Hiring the right talent is critical for every business, but navigating the Labour Market Impact Assessment (LMIA) process can be complex. At Can X, we make hiring simple, efficient, and affordable, ensuring businesses of all sizes can meet their workforce needs seamlessly.
Whether you’re looking to fill high—wage or low—wage positions, our expertise ensures success every step of the way.
Understanding High—Low Wage LMIA
Key Differences
Each job in Canada has wage thresholds—low, median, and high—based on regional standards. For instance, as of December 2024, a carpenter in British Columbia’s Lower Mainland earns:
Low Wage: $21/hour
Median Wage: $30/hour
High Wage: $40/hour
In addition, the provincial median wage acts as a benchmark across all occupations. In British Columbia, this is currently $34.62/hour.
High—Wage LMIA: If the wage offered is at or above the provincial median, the application falls under this category.
Low—Wage LMIA: If the wage offered is below the provincial median, the application is categorized as low—wage.
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High Wage LMIA
High—wage LMIA applications typically involve roles requiring advanced skills and experience. To support Canada’s economic growth, employers must submit a transition plan, demonstrating their commitment to reducing reliance on temporary foreign workers (TFWs) by prioritizing Canadian talent.
Key Requirements of High—Wage LMIA Application
A transition plan is a critical component of a high—wage LMIA application, demonstrating the employer’s commitment to reducing dependency on temporary foreign workers (TFWs) by hiring, training, and retaining Canadian citizens or permanent residents. This plan outlines efforts to prioritize the recruitment of Canadians, implement training programs for skill development, and prepare local workers to transition into key roles over time. Strategies may include on-the-job training, mentorship initiatives, and partnerships with educational institutions to create pathways for Canadian talent. For repeat applicants, the plan should also address the effectiveness of previous commitments. Overall, the transition plan underscores a long—term strategy to meet labor needs while contributing to a sustainable Canadian workforce. Here’s how to effectively craft a transition plan for a high—wage LMIA application.
Identify the Role and Its Requirements: Clearly explain the job you’re hiring for, including the specific skills and experience needed. For instance, if you’re filling a high-tech role, detail the technical expertise required so it’s easy to understand why this position is critical.
Market Analysis and Recruitment Efforts: Show that you’ve made every effort to hire Canadians first. This might include posting the job on multiple job boards, attending local job fairs, or working with employment agencies. Document your efforts honestly, highlighting what you’ve done to find local talent.
Training and Development Programs: Share how you plan to grow and support your Canadian workforce. For example, you might provide mentorship opportunities, on-the-job training, or workshops to help current employees develop the skills needed to succeed.
Succession Planning: Describe how you’ll prepare Canadians to take on key roles in the future. This could mean pairing junior employees with experienced foreign workers to help them learn, grow, and eventually step into those roles themselves.
Collaboration with Educational Institutions: Talk about partnerships with colleges or universities to help students or graduates’ transition smoothly into your organization. Offering internships, co-op placements, or entry—level opportunities is a great way to invest in young talent.
Examples of Transition Plan Strategies
These examples are designed to inspire realistic, tailored activities for your business, occupation, and location. They not only demonstrate your commitment to building a skilled and sustainable workforce but also foster employee loyalty and satisfaction. Ensure your transition plan aligns with your business goals and remember that you may need to provide evidence of these activities in future LMIA applications.
Flexibility and Tuition Support: Encourage employees’ professional growth by offering flexible schedules or remote work options to help balance education and work, such as allowing employees pursuing certifications to work remotely twice a week while reimbursing up to 80% of their tuition fees.
Referral Incentive Program: Leverage employee networks to attract talent by implementing a referral program that rewards employees with bonuses, for example, providing a $500 bonus after a referred candidate completes six months of employment.
Relocation Assistance for New Hires: Expand your talent pool by covering relocation expenses to attract candidates from other regions, such as offering up to $3,000 to help new hires from other provinces settle into their roles.
Skills Development and Training Programs: Enhance employee skills through monthly workshops or training sessions, like hosting software training sessions to keep IT staff updated on the latest technologies and industry practices.
Career Advancement Opportunities: Support employee growth with leadership and mentorship programs, for instance, a “Future Leaders” initiative pairing promising staff with senior employees to prepare for management roles.
Employee Engagement and Retention Initiatives: Improve retention by recognizing achievements and promoting work-life balance through initiatives like a quarterly “Wellness Day” or an “Employee of the Month” program to reward exceptional contributions.
Community and Educational Partnerships: Collaborate with educational institutions to develop talent pipelines, such as partnering with a local college to provide paid internships in engineering or business fields for students.
Competitive Compensation and Incentives: Stay competitive by regularly updating pay structures and offering performance bonuses, such as providing 5% annual raises to top-performing employees based on structured performance reviews.
Diversity and Inclusion Initiatives: Promote inclusivity by hosting cultural events and offering training programs, like an annual Multicultural Day celebration and sensitivity workshops to create a welcoming workplace.
Health and Wellness Programs: Foster employee well-being with comprehensive wellness benefits, such as offering an annual $1,000 wellness allowance for gym memberships or therapy sessions to support physical and mental health.
Flexible Benefits Packages: Address diverse employee needs by customizing benefits, for example, providing childcare reimbursement plans to support working parents.
Internal Communication Enhancements: Strengthen communication through regular meetings and feedback opportunities, such as hosting quarterly town halls and implementing anonymous suggestion boxes to foster transparency and trust.
Work Environment Improvement: Boost morale by investing in comfortable and engaging workplaces, like providing ergonomic workstations and team break rooms with games and relaxation areas.
Leadership Training and Development: Prepare future leaders with cross-departmental training and workshops, such as organizing sessions on conflict resolution and strategic planning for team leaders.
Social Responsibility and Community Engagement: Encourage pride and community spirit by organizing volunteering opportunities, such as an annual volunteer day where employees participate in local projects like tree planting or food drives.
Regular Performance and Satisfaction Assessments: Enhance employee satisfaction with regular reviews and actionable feedback, such as conducting quarterly surveys to identify concerns and rewarding top performers with bonuses.
Low Wage LMIA
A low-wage LMIA application applies when the wage offered to a foreign worker is below the provincial or territorial median hourly wage. These applications are often used in industries with many entry-level or less specialized positions. Unlike high wage LMIA applications, employers do not need to provide a transition plan. However, they must meet specific requirements, such as limits on the number of low-wage temporary foreign workers they can hire and responsibilities for providing transportation, accommodation, and health insurance for the workers.
Key Requirements of Low-Wage LMIA Application
Cap on Low-Wage TFWs: In the Temporary Foreign Worker Program (TFWP), the ‘cap‘ limits the number of Temporary Foreign Workers (TFWs) employers can hire in low-wage positions at a specific location. This cap is strategically implemented to ensure jobs are available to Canadian citizens and permanent residents. Employers seeking to hire under the TFWP must carefully complete the “Cap for low-wage positions” section of their LMIA applications and may need to provide supplementary documentation such as payroll records. The cap varies by sector, with certain industries having specific limits based on the North American Industry Classification System (NAICS). Exemptions to this cap exist in various categories, including agricultural and healthcare positions, as well as in short-term or seasonal roles, and under unique arrangements like the Quebec pilot project.
Transportation Costs: Employers hiring TFWs are responsible for covering round-trip transportation costs. This includes ensuring TFWs are transported from their home country to Canada and back. Additionally, if the TFW is already in Canada, the employer is obliged to cover their transportation expenses from their current location to the new work site within Canada.
Accommodation: It’s the employer’s duty to ensure the availability of suitable and affordable housing for TFWs close to their workplace. In some cases, employers may be required to provide the worker with appropriate accommodation to ensure worker comfort and accessibility to the job site.
Health and Safety: Providing private health insurance to TFWs until they are eligible for provincial health coverage is mandatory. This is a vital aspect of worker well-being. Furthermore, registering TFWs with the provincial or territorial workplace safety board is a critical step in ensuring their health and safety at the workplace.
Employment Contract: An employment contract, outlining both parties’ rights and obligations, is fundamental. This contract must be prepared and signed by both the employer and the TFW. It’s imperative that the TFW signs the contract before their arrival in Canada, establishing a clear understanding of the employment terms and conditions.
Ready to Simplify Your LMIA Process
For over a decade, Can X have been a trusted partner for businesses across Canada, offering fast, affordable, and reliable LMIA solutions. From eligibility assessments to crafting compliant job postings, preparing detailed LMIA applications, and representing you with ESDC, our expert team ensures every step is handled with precision and care. We understand the challenges of the LMIA process and are here to simplify it, helping your business secure the talent it needs to succeed. Contact us today to start your seamless LMIA application journey.
FAQs About High—Low Wage LMIA
A high-wage LMIA is required when the wage offered is at or above the provincial median hourly wage.
A transition plan must be submitted to reduce the reliance on foreign workers and to hire and train Canadian citizens.
A cap limits how many low-wage temporary foreign workers an employer can hire at a specific location on the basis of an LMIA-based job offer.
Yes, exemptions include certain positions in agriculture, healthcare, short-term roles, and under specific arrangements like the Quebec pilot project.
A suitable and affordable housing option must be available near the workplace for low-wage LMIA TFWs.
It’s a contract outlining the rights and obligations of both the employer and the TFW, signed before the worker’s arrival in Canada.
A transition plan is a strategy submitted with a high-wage LMIA application, detailing how the employer intends to reduce dependence on temporary foreign workers by focusing on hiring and training Canadian citizens or permanent residents.
While certain elements of a transition plan might be applicable across multiple applications, it should be tailored to each specific job and application.
When the offered wage is below the provincial median hourly wage, a low-wage LMIA is required.
No, a transition plan is not required for low-wage LMIA applications.
Wage levels are determined by Employment and Social Development Canada (ESDC) based on regional and provincial standards.
Transport costs must be covered by employers for TFWs from their home country to Canada and back, or within Canada if already employed under a low-wage LMIA.
Employers need to provide private health insurance until TFWs are eligible for provincial coverage and register them with the workplace safety board.
Yes! LMIA rules and requirements can change, often involving job categories, durations, and exemptions.
The plan should be comprehensive, outlining specific actions and measurable goals. It should clearly demonstrate the employer’s commitment to reducing reliance on foreign workers and increasing employment opportunities for Canadians.
While the fundamental requirements of a transition plan are consistent, the specific strategies and actions may vary based on industry, job type, and location.
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