Canada Updates TFWP Wage Thresholds for 2026

New TFWP Wage Thresholds by Province and Territory

The following thresholds apply to LMIA applications received on or after July 17, 2026.

Nunavut recorded the largest dollar increase, rising by $3.00 per hour. The Northwest Territories was the only jurisdiction listed with no change.

The thresholds are calculated using the applicable provincial or territorial median hourly wage plus 20%.

What Does the TFWP Wage Threshold Mean?

The provincial or territorial threshold is a classification tool used during the LMIA process.

Example for an Ontario position

Ontario’s threshold is $36.92 per hour for LMIAs received on or after July 17, 2026.

• A position paying $38.00 per hour would generally be classified under the high-wage stream.
• A position paying $35.00 per hour would generally be classified under the low-wage stream.

The employer must still confirm the prevailing wage for the occupation and work location.

For example, if the Job Bank median wage for the occupation and region is $41.00 per hour, offering only $38.00 may not satisfy the program’s wage requirement even though the position exceeds Ontario’s general threshold.

Is This a New Minimum Wage for Foreign Workers?

No. The updated TFWP threshold should not be confused with a provincial minimum wage.

Three different wage figures may be relevant to an LMIA-supported position:

Under the TFWP, employers generally must offer the highest of:

• The applicable median wage published on Job Bank for the occupation and work location; or
• The wage paid to current employees performing the same job at the same location with similar skills and experience.

Overtime, tips, bonuses, commissions, profit sharing and non-guaranteed benefits are generally not counted when determining the guaranteed wage offered in an LMIA application.

High-Wage vs. Low-Wage TFWP Applications

The stream classification affects several employer obligations.

High-wage transition plan

Employers hiring for high-wage positions generally need to submit a transition plan explaining how they will recruit, retain or train Canadians and permanent residents and reduce reliance on temporary foreign labour.

Specific exemptions may apply to certain caregiver, healthcare, agricultural, short-duration or uniquely skilled positions.

Low-wage recruitment obligations

Employers in the low-wage stream face additional recruitment rules, which may include advertising for a longer period and making specific efforts to recruit Canadians and permanent residents from underrepresented groups.

What Do the New Thresholds Mean for Existing TFWP Workers?

The July 17 threshold update does not automatically cancel an existing positive LMIA or work permit.

The new table applies when determining the stream for LMIAs received on or after July 17, 2026.

An employer seeking a new LMIA to support a work permit extension may find that a position previously classified as high-wage now falls under the low-wage stream.

Example

Consider an Ontario position paying $36.50 per hour.

• Under the previous $36.00 threshold, the position would generally have been classified as high-wage.
• Under the new $36.92 threshold, the same wage would generally be classified as low-wage.

This could affect the applicable recruitment period, maximum employment duration, workforce cap and whether the LMIA can be processed in a high-unemployment census metropolitan area.

Employers must still review prevailing wages

Employers are required to ensure that workers receive the applicable prevailing wage at the beginning of and throughout the employment period.

Job Bank wages are generally reviewed annually. Employers who fail to update wages when required may face monetary penalties or restrictions on future use of the Temporary Foreign Worker Program.

Low-Wage LMIA Restrictions in High-Unemployment Regions

Certain low-wage LMIA applications are not processed when the job is located in a census metropolitan area with an unemployment rate of 6% or higher.

The employer must consider both:

• Whether the wage is below the applicable provincial or territorial threshold; and
• Whether the job location is inside a census metropolitan area with an unemployment rate of at least 6%.

For applications submitted from July 10 to October 8, 2026, affected CMAs include:

The unemployment-rate table is updated every three months. The next scheduled update is October 9, 2026.

Employers should confirm the current rate and use the exact postal code of the work location before submitting an LMIA.

Which Positions May Be Exempt from the CMA Refusal?

Some essential sectors and occupations remain eligible for LMIA processing even when a low-wage position is located in an affected CMA.

Exemptions can include positions in:

• Primary agriculture;
• Construction;
• Food manufacturing;
• Hospitals;
• Nursing and residential care facilities;
• Certain eligible in-home caregiver occupations;
• Certain highly mobile or short-duration positions.

An exemption from the CMA refusal does not remove every other TFWP requirement. The employer must still meet the applicable wage, recruitment, business-legitimacy and worker-protection conditions.

Low-wage workforce caps

The general cap allows temporary foreign workers in low-wage positions to represent up to 10% of the workforce at a specific work location.

A 20% cap can apply to designated construction, food-manufacturing, hospital, nursing and residential-care positions and certain caregiver occupations.

Temporary measures for rural employers

From April 1, 2026 to March 31, 2027, qualifying rural employers in participating provinces or territories may benefit from temporary workforce-cap measures.

Depending on the participating jurisdiction, an eligible employer may be permitted to retain its existing proportion of low-wage temporary foreign workers or use a 15% cap instead of the usual 10% cap.

These measures apply only in eligible areas outside census metropolitan areas and do not apply automatically in every province or territory.

What Should Employers Do Before Submitting an LMIA?

1. Use the correct effective-date table. Applications received on or after July 17, 2026 are assessed using the updated thresholds.
2. Identify the exact work location. The province or territory and the worksite postal code can affect the stream and processing restrictions.
3. Compare the offered wage with the threshold. Determine whether the position falls under the high-wage or low-wage stream.
4. Check the prevailing wage. Search the occupation and region on Job Bank and review wages paid to comparable Canadian and permanent resident employees.
5. Check the CMA unemployment rate. For a low-wage position, determine whether the worksite is in a CMA with unemployment of 6% or higher.
6. Check for an exemption. Confirm whether the sector or occupation is exempt from a refusal-to- process measure.
7. Calculate the workforce cap. Verify the percentage of employees in low-wage TFWP positions at the specific work location.
8. Complete the correct recruitment period. High-wage and low-wage applications have different minimum advertising requirements.
9. Prepare the transition plan where required. Most high-wage applications require a plan to reduce reliance on the TFWP.
10. Review provincial employer-registration rules. Additional registration requirements may apply in British Columbia, Manitoba, Saskatchewan and Nova Scotia.

An LMIA submitted under the incorrect stream or with an insufficient wage may be returned, refused or receive a negative decision.

What Should Temporary Foreign Workers Verify?

A foreign worker normally depends on the employer to obtain a positive or neutral LMIA before applying for an employer-specific TFWP work permit.

Workers should review:

• The employer’s legal business name;
• The occupation and NOC code;
• The work location;
• The guaranteed hourly wage;
• The expected hours of work;
• The employment duration;
• The duties listed in the employment agreement;
• Transportation, housing and insurance obligations where applicable;
• Any fees being requested by an employer, recruiter or representative.

Employers and recruiters cannot recover the LMIA processing fee or recruitment costs from the temporary foreign worker.

A positive LMIA does not guarantee that IRCC will approve the work permit. The worker must separately satisfy the work permit and admissibility requirements.

How Always Canada Group Can Help

Always Canada Group is a Canadian immigration consultancy led by Regulated Canadian Immigration Consultants.

Our work permit and LMIA-related services may include:

• Reviewing high-wage and low-wage stream classification;
• Assessing the applicable provincial wage threshold;
• Reviewing occupation and NOC selection;
• Checking prevailing-wage requirements;
• Reviewing LMIA recruitment and advertising evidence;
• Assessing workforce-cap and CMA restrictions;
• Preparing employer-specific work permit applications;
• Preparing eligible work permit extension applications;
• Reviewing previous LMIA or work permit refusals;
• Responding to document requests from government authorities.

A wage above the threshold does not guarantee a positive LMIA, and a positive LMIA does not guarantee a work permit.

Final LMIA decisions remain with ESDC and Service Canada. Final work permit decisions remain with IRCC.

Book a work permit consultation with Always Canada Group to review the employer, position, wage and immigration requirements.