Those recruiting foreigners to work in Canada as employees are set to have a new minimum wage for eligibility of the LMIA program. The new LMIA program is to begin on November 8, 2024.
This change affects every Canadian province and territory in relation to minimum wage used to determine whether an employer’s job offer to a foreign worker is classified as high wage or low wage stream under the TFWP program.
These newly-implemented clearly-defined wage thresholds illustrate the increasing necessity for employment equity in Canada as a result of inflation and changes to economic systems.
They are determined by province and territory, the new wage thresholds being, on average, 20% higher than current rates — hence how many establishments will be affected across industries.
Understanding the New Wage Requirements
Canada grants permission to employers to bring foreign workers in for parts of the field in which no qualified Canadians can be found.
Using the International Work Permit, employers are required to be submitted for a Labour Market Impact Assessment (LMIA) to determine the effect of hiring Temporary Foreign Worker (TFW) on Canada jobs economy.
There are two streams included in this LMIA process:
High-Wage Stream: For occupations that have wages at or above the provincial or territorial threshold.
Low-Wage Sector: For employment with wages less than the province or territory minimum.
Starting November 8, the wage threshold for classifying LMIA applications as high-wage stream or low-wage stream is increased by 20% in all provinces and territories.
The wage levels that employers must meet when hiring TFWs have been updated and this will require employers to rethink their wage offerings.
Here are the new wage thresholds by province and territory:
Provincial Insights: Changes in LMIA Wage Thresholds
These are some of the most significant changes at a regional level and what they mean for jobs there:
Alberta: The low-wage threshold increased from $29.50 to $35.40. Alberta has a rapid labour market demand because it is the first choice of skilled workers for working in energy, technology and construction but this requirement may be impacting employers in adjusting their hiring systems.
British Columbia: The minimum wage for high-wage positions in BC will increase from $28.85 to a new rate of $34.62 per hour. The rise is in step with the increasing cost of living across the province, and is targeted at attracting labour from abroad for tech, health care and service jobs.
Ontario: Ontario’s wage threshold moves upward from $28.39 to $34.07, and businesses in urban centres like Toronto, Ottawa, and Hamilton may come under pressure to meet competitive wages for desirable positions in the IT, healthcare and finance sectors.
Quebec: It had been $27.47 in Quebec but has increased to $32.96, which may affect employers in manufacturing, hospitality and service industries. Targeting French-speaking talent also intensifies the competition for high-wage positions in Quebec.
Saskatchewan and Manitoba: Both agriculture- and natural-resource-heavy economies will start having thresholds of $32.40 and $30.00 respectively — an increase on the tax-free portion at the federal level but well-below many other jurisdictions. Other employers here might need to reconsider pay brackets for agricultural, mining and logistics positions.
How These Changes Impact Employers and Foreign Workers
The updated wage thresholds are designed to better align pay for foreign workers with the local labour market.
Here is how the changes could impact employers as well as TFWs:
Impact on Employers
Revising Budgets and Wage: Employers will have to re-evaluate what they can afford for positions that would attract foreign workers.
As a result, some businesses may be required to increase their offered wages by 20% to meet the high-wage stream standards.
Simplifying LMIA Applications: Application under the high-wage stream tends to carry a slightly less intensive requirement relative to the low-wage stream (e.g. training and transition plans with Canadians eventually over period).
Those employers who were historically just below the old high-wage threshold when they offered wages may now be able to fall under the high-wage stream, as long as they adjust their wage offer to align with new thresholds.
Industry-specific Implications: Where the TFWs play an integral part, such as agricultural and hospitality sectors, their desire to migrate may increase since operating costs are higher from the new wage requirement.
In some regions, businesses reliant on low-wage foreign labour may need to reconsider their hiring and wage strategies.
What’s Next for Foreign Workers in Canada?
These new wage thresholds show Canada’s commitment to ensure that foreign workers are compensated according to the local cost of living and labour market conditions.
Higher wages mean better integration of foreign workers employed under the TFWP, and a more successful transition to Canadian society if those individuals choose to head down permanent residence pathways.
These increases in wage show that foreign workers will be paid relatively higher than the pay given to a Canadian worker.
In addition, workers with higher wage offers may be more eligible for economic immigration programs that are based around high-wage employment.
The new LMIA wage thresholds effective November 8, 2024, represent a new approach towards foreign labour in Canada.
In particular, where there is an acute labour shortage, employers are now required to consider elevated wage thresholds to hire and keep temporary foreign workers.
Those amendments result in a stable labour market, where overseas workers receive fair pay and employers maintain their access to the skills that they require.
Overall, these wage thresholds under the TFWP are a positive first step in ensuring that Canada can on-board individuals into its economy who may have been excluded by undergoing changes to immigration and labour policy.
Need to Know for Employers and TFWs: Keeping abreast of these changes shall be critical for each employers and TFWs in facing these adjustments, together with adjustments with Canada’s altering employment standards.
From November 8, New Canada has raised the LMIA work permit wage.
Those recruiting foreigners to work in Canada as employees are set to have a new minimum wage for eligibility of the LMIA program. The new LMIA program is to begin on November 8, 2024.
This change affects every Canadian province and territory in relation to minimum wage used to determine whether an employer’s job offer to a foreign worker is classified as high wage or low wage stream under the TFWP program.
These newly-implemented clearly-defined wage thresholds illustrate the increasing necessity for employment equity in Canada as a result of inflation and changes to economic systems.
They are determined by province and territory, the new wage thresholds being, on average, 20% higher than current rates — hence how many establishments will be affected across industries.
Understanding the New Wage Requirements
Canada grants permission to employers to bring foreign workers in for parts of the field in which no qualified Canadians can be found.
Using the International Work Permit, employers are required to be submitted for a Labour Market Impact Assessment (LMIA) to determine the effect of hiring Temporary Foreign Worker (TFW) on Canada jobs economy.
There are two streams included in this LMIA process:
High-Wage Stream: For occupations that have wages at or above the provincial or territorial threshold.
Low-Wage Sector: For employment with wages less than the province or territory minimum.
Starting November 8, the wage threshold for classifying LMIA applications as high-wage stream or low-wage stream is increased by 20% in all provinces and territories.
The wage levels that employers must meet when hiring TFWs have been updated and this will require employers to rethink their wage offerings.
Here are the new wage thresholds by province and territory:
Provincial Insights: Changes in LMIA Wage Thresholds
These are some of the most significant changes at a regional level and what they mean for jobs there:
Alberta: The low-wage threshold increased from $29.50 to $35.40. Alberta has a rapid labour market demand because it is the first choice of skilled workers for working in energy, technology and construction but this requirement may be impacting employers in adjusting their hiring systems.
British Columbia: The minimum wage for high-wage positions in BC will increase from $28.85 to a new rate of $34.62 per hour. The rise is in step with the increasing cost of living across the province, and is targeted at attracting labour from abroad for tech, health care and service jobs.
Ontario: Ontario’s wage threshold moves upward from $28.39 to $34.07, and businesses in urban centres like Toronto, Ottawa, and Hamilton may come under pressure to meet competitive wages for desirable positions in the IT, healthcare and finance sectors.
Quebec: It had been $27.47 in Quebec but has increased to $32.96, which may affect employers in manufacturing, hospitality and service industries. Targeting French-speaking talent also intensifies the competition for high-wage positions in Quebec.
Saskatchewan and Manitoba: Both agriculture- and natural-resource-heavy economies will start having thresholds of $32.40 and $30.00 respectively — an increase on the tax-free portion at the federal level but well-below many other jurisdictions. Other employers here might need to reconsider pay brackets for agricultural, mining and logistics positions.
How These Changes Impact Employers and Foreign Workers
The updated wage thresholds are designed to better align pay for foreign workers with the local labour market.
Here is how the changes could impact employers as well as TFWs:
Impact on Employers
Revising Budgets and Wage: Employers will have to re-evaluate what they can afford for positions that would attract foreign workers.
As a result, some businesses may be required to increase their offered wages by 20% to meet the high-wage stream standards.
Simplifying LMIA Applications: Application under the high-wage stream tends to carry a slightly less intensive requirement relative to the low-wage stream (e.g. training and transition plans with Canadians eventually over period).
Those employers who were historically just below the old high-wage threshold when they offered wages may now be able to fall under the high-wage stream, as long as they adjust their wage offer to align with new thresholds.
Industry-specific Implications: Where the TFWs play an integral part, such as agricultural and hospitality sectors, their desire to migrate may increase since operating costs are higher from the new wage requirement.
In some regions, businesses reliant on low-wage foreign labour may need to reconsider their hiring and wage strategies.
What’s Next for Foreign Workers in Canada?
These new wage thresholds show Canada’s commitment to ensure that foreign workers are compensated according to the local cost of living and labour market conditions.
Higher wages mean better integration of foreign workers employed under the TFWP, and a more successful transition to Canadian society if those individuals choose to head down permanent residence pathways.
These increases in wage show that foreign workers will be paid relatively higher than the pay given to a Canadian worker.
In addition, workers with higher wage offers may be more eligible for economic immigration programs that are based around high-wage employment.
The new LMIA wage thresholds effective November 8, 2024, represent a new approach towards foreign labour in Canada.
In particular, where there is an acute labour shortage, employers are now required to consider elevated wage thresholds to hire and keep temporary foreign workers.
Those amendments result in a stable labour market, where overseas workers receive fair pay and employers maintain their access to the skills that they require.
Overall, these wage thresholds under the TFWP are a positive first step in ensuring that Canada can on-board individuals into its economy who may have been excluded by undergoing changes to immigration and labour policy.
Need to Know for Employers and TFWs: Keeping abreast of these changes shall be critical for each employers and TFWs in facing these adjustments, together with adjustments with Canada’s altering employment standards.
Author: Sam Gill
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