Canada Raises Low-Wage TFWP Hourly Wage Thresholds

Canada Raises TFWP Low‑Wage Thresholds Effective July 17, 2026 — What Employers and Workers Need to Know

What changed and why this matters now
On July 17, 2026, the federal government raised the hourly wage thresholds that determine eligibility under the low‑wage stream of the Temporary Foreign Worker Program (TFWP). Thresholds are now set at 120% of the median wage for each province and territory. In regions with unemployment of 6% or higher, employers cannot start new hires or renew low‑wage TFWP permits for roles paying below the new provincial/territorial thresholds. This affects employers recruiting low‑wage temporary workers, foreign nationals seeking or renewing TFWP permits, and labour markets in the listed metropolitan areas.

How the new provincial and territorial wage thresholds work
The low‑wage stream threshold is 120% of the regional median wage. Selected province/territory thresholds effective July 17, 2026 (previous shown in parentheses):

– Alberta: $37.50 (previous $36.00)
– British Columbia: $38.40 (previous $36.60)
– Manitoba: $31.33 (previous $30.16)
– New Brunswick: $31.73 (previous $30.00)
– Newfoundland and Labrador: $33.60 (previous $32.40)
– Northwest Territories: $48.00 (no change)
– Nunavut: $45.00 (previous $42.00)
– Ontario: $36.92 (previous $36.00)
– Quebec: $36.00 (previous $34.62)
– Saskatchewan: $34.62 (previous $33.60)
– Yukon: $45.60 (previous $44.40)

Employers in metros subject to the freeze must meet or exceed the applicable threshold to initiate or renew LMIA‑based low‑wage permits.

Where hiring is paused: regions with a work permit freeze
The government froze low‑wage TFWP permits in census metropolitan areas with unemployment ≥ 6%. The affected metros and their unemployment rates (as reported in the source) include:

– St. John’s, NL — 7.3%
– Moncton, NB — 8.1%
– Montréal, QC — 6.8%
– Ottawa–Gatineau, ON/QC — 6.7%
– Belleville–Quinte West, ON — 6.7%
– Peterborough, ON — 7.0%
– Oshawa, ON — 8.5%
– Toronto, ON — 7.3%
– Hamilton, ON — 6.9%
– Kitchener–Cambridge–Waterloo, ON — 8.1%
– Brantford, ON — 6.2%
– Guelph, ON — 7.4%
– London, ON — 7.8%
– Windsor, ON — 7.9%
– Barrie, ON — 7.9%
– Greater Sudbury, ON — 6.2%
– Saskatoon, SK — 6.5%
– Calgary, AB — 7.0%
– Red Deer, AB — 7.2%
– Edmonton, AB — 7.2%
– Kelowna, BC — 7.5%
– Kamloops, BC — 7.0%
– Chilliwack, BC — 7.9%
– Abbotsford–Mission, BC — 8.0%
– Vancouver, BC — 6.7%
– Nanaimo, BC — 6.5%

If your work location is inside any of these metros, you may not initiate or renew low‑wage TFWP permits for roles below the provincial threshold.

When employers outside the freeze areas can still hire low‑wage workers
Employers outside the frozen metros can apply for low‑wage LMIAs for roles paying below the threshold but must satisfy stricter low‑wage stream rules, including:

– A 10% cap on the proportion of workers at a given work location hired through the low‑wage stream.
– Certain occupations (e.g., construction, food manufacturing) are exempt from the 10% cap and have a 20% cap.
– A temporary federal measure (Apr 1, 2026 – Mar 31, 2027) raised the cap to 15% for rural employers in provinces that opt in.
– Minimum job duration: eight weeks in the last three months (vs. four weeks under the high‑wage stream).
– Recruitment targeting underrepresented groups (e.g., Indigenous peoples, persons with disabilities) and targeted youth recruitment (ages 15–30).
– Employers must invite all Job Bank matches rated two stars or more (high‑wage stream uses four stars).
– Employers are expected to provide “suitable and affordable” housing and pay round‑trip transportation for foreign workers.

These conditions restrict low‑wage labour access even where geographic freezes do not apply.

How this fits into the government’s broader TFWP policy direction
The July 17, 2026 increases build on policy changes since 2024 aimed at limiting low‑wage temporary labour and protecting local labour markets. Measures cited in the source include:

– A moratorium on low‑wage LMIAs in regions with unemployment above 6%.
– Raising the low‑wage threshold to 120% of the regional median (previously the median).
– Lowering workforce caps for the low‑wage stream from 20% to 10%.
– Introducing annual admissions targets for temporary residents, including TFWP holders.

The source reports TFWP admissions in 2026 are down over 50% relative to 2024 (January–April comparison), with a 2026 admissions target of 60,000 TFWP work permit holders. IMP admissions (which do not require LMIAs) have a 2026 target of 170,000 and are reported to be down 69% relative to 2024.

Who is most directly affected
– Employers in metros with unemployment ≥ 6%: cannot hire or renew low‑wage TFWP permits for roles below the updated thresholds.
– Employers outside freeze areas: can apply but must meet low‑wage stream rules (caps, recruitment, housing, transport).
– Prospective and current low‑wage TFWP workers: access and renewals may be limited or blocked where wages are below the new thresholds.
– Regional labour markets: measures aim to protect local wages and address youth unemployment.

Practical impacts employers and applicants should expect
Employers should:

– Reassess compensation for low‑wage roles to meet the new thresholds.
– Check whether their work location is in a frozen metro before initiating or renewing LMIAs.
– Account for the 10% cap per work location (20% for certain sectors) and the temporary 15% rural increase where applicable.
– Document recruitment aimed at underrepresented groups and youth, and invite Job Bank matches rated two stars or more.
– Prepare to provide suitable, affordable housing and pay round‑trip transportation for foreign workers.

Applicants and workers should:

– Confirm the employer’s job and wage meet the low‑wage stream threshold and whether the work location is frozen.
– Understand that renewals can be blocked if wage or eligibility conditions are not met.
– Consider alternative streams where eligible — note IMP admissions have also declined in 2026.

Key numbers and dates to keep on your radar
– Effective date: July 17, 2026.
– Low‑wage threshold: 120% of the regional median wage.
– Work permit freeze: metros with unemployment ≥ 6% (list above).
– Workforce cap (low‑wage stream): generally 10% per work location; certain occupations 20%.
– Temporary cap increase: Apr 1, 2026 – Mar 31, 2027, 15% for rural opt‑in provinces.
– Minimum job duration (low‑wage): eight weeks in the last three months.
– 2026 TFWP admissions target: 60,000.
– 2026 IMP admissions target: 170,000.
– Reported declines: TFWP admissions in 2026 down >50% vs. 2024; IMP admissions down 69% vs. 2024 (Jan–Apr comparison as noted in source).

What to watch and immediate next steps
Employers should:

– Confirm the work location and whether it’s inside a frozen metro.
– Review existing offers and LMIA plans to ensure wages meet the new thresholds and low‑wage stream obligations can be met.
– Assess workforce composition per work location for cap calculations.
– Strengthen recruitment documentation targeting underrepresented groups and youth.

Applicants and workers should:

– Verify wage and LMIA eligibility before applying or seeking a renewal.
– Be aware renewals may be blocked if conditions aren’t met.
– Explore other streams where eligible.

Practical scenarios
– A food manufacturing site in a non‑frozen rural area can still apply under the low‑wage stream but must consider caps, housing and transport obligations, and whether the temporary 15% rural increase applies.
– A downtown Toronto retail location offering under $36.92/hour cannot initiate new low‑wage TFWP hires or renew such permits after July 17, 2026 because Toronto is listed in the freeze.
– Low‑wage workers in Montréal or Vancouver should confirm employer pay meets the new threshold and that an LMIA exists for renewals.

If your situation involves a pending LMIA, a renewal, or recruitment planning for low‑wage positions, timing and accurate wage calculations against the new provincial thresholds are essential.

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