TFWP 2025 Update: Canada Raises Wage Requirements for Foreign Workers

Canada has updated its Temporary Foreign Worker Program (TFWP) by increasing the minimum wage thresholds employers must offer when applying for a Labour Market Impact Assessment (LMIA). These new wage requirements, which came into effect on June 27, 2025, are critical for both employers hiring foreign nationals and workers seeking job opportunities in Canada.

This blog explains what has changed, why it matters, and what steps employers and job seekers need to take to comply.

Who Is This Blog For?

• • Canadian employers hiring through the TFWP
  • Temporary foreign workers applying for jobs in Canada
  • Immigration consultants and HR professionals managing LMIA applications
  • Newcomers seeking employment pathways tied to work permits or PR

What Is the Temporary Foreign Worker Program (TFWP)?

The TFWP allows Canadian employers to hire foreign nationals for positions that cannot be filled locally. Before hiring a foreign worker, employers typically need to apply for an LMIA— a government approval that verifies the need for a foreign worker and confirms that no Canadian citizen or permanent resident is available for the role.

What Are the 2025 Wage Changes?

Effective June 27, 2025, wage thresholds for TFWP jobs have increased in almost all provinces and territories. These thresholds determine whether a position is classified as high-wage or low-wage, which affects the LMIA process, caps, and compliance rules.

New 2025 Wage Thresholds (Hourly, CAD)

Note: These thresholds are reviewed regularly by Employment and Social Development Canada (ESDC). Always verify the latest wage rates when preparing an LMIA application.

Why Did Canada Increase TFWP Wage Requirements?

The wage increase is designed to balance economic needs with labour market protections. Here’s why it matters:

• • Worker Protection: Prevents the underpayment or exploitation of foreign workers
  • Fair Competition: Ensures wages remain attractive for Canadian workers
  • Responsible Use of TFWP: Ensures employers are not using the program as a low-cost labour solution, but as a last resort when no local workers are available

High-Wage vs. Low-Wage Streams: What’s the Difference?

Whether your LMIA application falls under the high-wage or low-wage stream depends on the offered hourly wage compared to your province’s threshold.

High-Wage Stream

• • Offered wage meets or exceeds the threshold
  • Fewer restrictions
  • No cap on number of foreign workers
  • Longer work permits and easier renewals

Low-Wage Stream

• • Offered wage is below the threshold
  • Stricter rules and limits
  • Caps on number of low-wage foreign workers (10%–20%)
  • Shorter work permit durations
  • Requires transportation, housing, and health coverage commitments

What Other Rules Apply in 2025?

Moratorium on Low-Wage LMIAs in High-Unemployment Areas

Employers in regions with 6% or higher unemployment rates cannot hire low-wage foreign workers. Affected areas include:

• • Greater Toronto Area (GTA)
  • Metro Vancouver
  • Montreal

This restriction is currently in effect until at least July 10, 2025 and may be extended.

Cap on Low-Wage Workers

• • 10% cap: Applies to most employers
  • 20% cap: Applies to sectors like construction, healthcare, and food manufacturing

What Counts as “Wage” Under the TFWP?

Only guaranteed base hourly wages are considered when assessing wage thresholds.

Do Not Count:

• • Overtime pay
  • Tips or gratuities
  • Bonuses or performance incentives
  • Accommodation or food allowances

Must Include:

• • Base wage as stated in the employment contract
  • Comparable wage to what is paid to Canadian workers in similar roles, locations, and experience level.

What Should Employers Do?

• • Review your province’s updated wage thresholds
  • Update job offers to reflect new wage rates
  • Determine whether your position is high- or low-wage
  • Check if your region is under the unemployment-based moratorium
  • Ensure your application includes all required supporting documentation

Tip: Failure to meet wage requirements is one of the most common reasons for LMIA refusals.

What Should Foreign Workers Know?

• • Confirm that your job offer meets the new wage threshold
  • Understand how your classification (high vs. low wage) affects your work permit
  • Talk to a qualified consultant to review your job offer and LMIA strategy
  • Know your rights as a temporary foreign worker

How This Affects PR Pathways

A higher wage job in the high-wage stream can:

• • Strengthen a PR application under Express Entry
  • Lead to more points for arranged employment
  • Increase LMIA validity for PR support (often up to 2 years)

Frequently Asked Questions

Why did Canada raise the wage requirements for foreign workers?
To protect foreign workers from underpayment, keep Canadian wages competitive, and ensure the TFWP is only used when no local worker is available.

How do I know if my job is high-wage or low-wage?
If your offered wage is at or above your province’s threshold, it’s high-wage; if it’s below, it’s low-wage.

Can employers still hire low-wage foreign workers in all areas?
No. There’s a moratorium on low-wage LMIAs in regions with unemployment rates of 6% or higher, affecting many major cities.

What happens if the wage offered is below the threshold?
The job falls under the low-wage stream, which has stricter limits on the number of foreign workers and shorter work permit durations.

Where can I find the current wage thresholds?
Visit the official Government of Canada website or consult with a regulated immigration consultant to get the latest wage rates for your province or territory.

Conclusion

Canada’s 2025 update to the Temporary Foreign Worker Program is a major policy shift aimed at ensuring fairness, integrity, and proper use of the program. Employers must now offer more competitive wages, especially in industries that rely heavily on foreign labour. At the same time, foreign workers must understand how these changes affect their eligibility and work permit options.

Need Help Navigating These Changes?

At Can X Global, we specialize in guiding both employers and foreign workers through the TFWP and LMIA process. Our team of experts can help you:

• • Understand the latest wage thresholds
  • Choose the right stream (high-wage vs. low-wage)
  • Prepare LMIA applications that meet compliance standards
  • Explore options for work permit extensions or PR

Contact Can X Global today for trusted immigration advice tailored to your situation.