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TL;DR

Canada will raise the hourly wage thresholds used to classify Labour Market Impact Assessment applications on July 17. Applications received by Employment and Social Development Canada (ESDC) through July 16 will use the current figures.

A job offer that qualifies for the high-wage stream before the deadline could fall into the low-wage stream afterward. That could mean longer advertising, targeted youth recruitment, a shorter potential work permit, and restrictions based on the workplace location.

The federal thresholds equal each province or territory’s median hourly wage plus 20%, using Statistics Canada Labour Force Survey data. A job offer below the applicable figure belongs in the low-wage stream while one at or above it belongs in the high-wage stream.

While the threshold determines the application stream, employers must still offer the prevailing wage for the occupation and pay temporary foreign workers comparably to Canadians and permanent residents doing similar work. ESDC has said raising a wage simply to avoid a program rule could lead to a negative LMIA decision.

Ontario’s threshold will rise from $36 to $36.92 an hour. Alberta’s will move from $36 to $37.50, while British Columbia’s will increase from $36.60 to $38.40. Nunavut has the largest increase, rising by $3 to $45. The Northwest Territories is the only jurisdiction without an increase; it will remain at $48.

The date of receipt of an LMIA application will determine how an offer is treated. An Ontario employer offering $36.50 an hour would qualify for the high-wage stream if ESDC receives the application by July 16. The same offer becomes low-wage on July 17 because it falls below $36.92.

An employer could raise the offer, but the revised amount must be genuine and reflected in recruitment. And if the employer changes the wages, the job may need to be advertised again.

A low-wage LMIA can support employment for up to one year, depending on the employer’s needs. Since April 1, employers have had to advertise these jobs for at least eight consecutive weeks within the three months before applying. The full recruitment period must be completed before filing, and recruitment must include targeted efforts to reach workers aged 15 to 30.

Low-wage temporary foreign workers are generally limited to 10% of the workforce at a location. Certain sectors can use a 20% cap, but the temporary rural measure permits eligible employers outside census metropolitan areas to reach 15% through March 31, 2027.

A high-wage LMIA may support employment for up to three years. Employers must submit a transition plan describing how they will reduce their reliance on temporary foreign workers. However, classification in this stream does not guarantee a three-year work permit.

From July 10, ESDC can refuse to process low-wage LMIAs for jobs in census metropolitan areas with unemployment of at least 6%.

Halifax, Winnipeg, Regina, and Kingston moved below 6% and became eligible for low-wage processing while Saskatoon, Red Deer, Kamloops, and Chilliwack crossed into the restricted group. The current rates apply through October 8, 2026.

ESDC assesses the worksite address rather than the employer’s head office. Exemptions cover primary agriculture, construction, hospitals, food manufacturing, specified care positions, and qualifying jobs lasting no more than 120 days.