Increase in Minimum Wage to Hire Higher-Paid Temporary Foreign Workers

The federal government is expected to increase the minimum hourly wage for temporary foreign workers in the high-wage stream to incentivize employers to hire more Canadian staff.

Currently, employers must pay at least the median income in their province to qualify for a permit under the high-wage Labour Market Impact Assessment (LMIA) stream. A government official, who cannot be named, disclosed that the threshold will rise to 20 percent above the provincial median hourly wage, effective November 8.

The government aims to promote the hiring of Canadian workers by implementing this change, as criticism has been raised regarding housing shortages and a higher cost of living due to an increase in temporary residents entering Canada.

An LMIA is necessary for employers to hire temporary foreign workers, demonstrating insufficient availability of Canadian workers for the positions.

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In Ontario, the median hourly wage for the high-wage bracket is $28.39. After the change, employers will need to pay at least $34.07 per hour.

An estimated 34,000 workers under the LMIA high-wage stream will be affected by this change. Existing work permits will remain unaffected, but renewals will be impacted.

In 2023, 183,820 temporary foreign worker permits were issued, up from 98,025 in 2019—a significant 88 percent increase.

This change is part of a series of measures aimed at restricting temporary residents like international students and foreign workers to certain eligibility rules. Measures include setting caps on low-wage foreign workers in specific sectors and ending permits in metropolitan areas with high unemployment rates.

Rule changes in the agriculture sector have not affected temporary foreign workers.