Stick to the Facts
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Canada has introduced new hourly wage thresholds that will significantly impact employers hiring foreign workers through the Temporary Foreign Worker Program (TFWP). Employment and Social Development Canada (ESDC) has confirmed that updated Labour Market Impact Assessment (LMIA) wage thresholds will take effect on July 17, 2026.
The revised wage thresholds determine whether an LMIA application falls under the high-wage stream or the low-wage stream. This distinction is important because each stream comes with different eligibility requirements, recruitment obligations, processing rules, and compliance measures.
Nearly every province and territory has experienced an increase in its wage threshold. The only exception is the Northwest Territories, where the threshold remains unchanged. These adjustments mean that many job offers that previously qualified as high-wage positions may now be considered low-wage positions, resulting in additional employer obligations and, in some cases, processing restrictions.
Whether you are an employer planning to hire international workers or a foreign worker seeking employment in Canada, understanding these updated thresholds is essential.
Why Canada Has Updated LMIA Wage Thresholds
Employment and Social Development Canada reviews wage thresholds periodically to reflect changes in Canada’s labour market.
The new thresholds are based on updated labour market data collected by Statistics Canada through the Labour Force Survey. Every province and territory receives its own threshold because wages differ across Canada.
Beginning July 17, 2026, every LMIA application submitted under the Temporary Foreign Worker Program will be assessed using these updated wage figures.
Applications submitted before this date will continue to be processed under the previous wage thresholds.
How LMIA Wage Thresholds Are Calculated
The wage threshold used for LMIA applications is calculated by taking the provincial or territorial median hourly wage and adding an additional 20 percent.
This formula helps distinguish higher-paying positions from lower-paying jobs within each province or territory.
The threshold itself does not determine how much an employer must pay for a particular occupation. Instead, it decides which LMIA stream applies.
Employers must still pay the prevailing wage for the occupation, which is based on wage data for the specific job and location.
In other words, employers need to satisfy two separate wage requirements.
The first requirement is paying the prevailing wage for the occupation.
The second is determining whether the offered wage falls above or below the provincial wage threshold, which determines the correct LMIA stream.
Updated LMIA Wage Thresholds for Every Province and Territory
The following wage thresholds apply to LMIA applications received on or after July 17, 2026.
| Province or Territory | New Threshold | Previous Threshold | Increase |
|---|---|---|---|
| Alberta | $37.50 | $36.00 | $1.50 |
| British Columbia | $38.40 | $36.60 | $1.80 |
| Manitoba | $31.33 | $30.16 | $1.17 |
| New Brunswick | $31.73 | $30.00 | $1.73 |
| Newfoundland and Labrador | $33.60 | $32.40 | $1.20 |
| Northwest Territories | $48.00 | $48.00 | No Change |
| Nova Scotia | $31.96 | $30.00 | $1.96 |
| Nunavut | $45.00 | $42.00 | $3.00 |
| Ontario | $36.92 | $36.00 | $0.92 |
| Prince Edward Island | $31.20 | $30.00 | $1.20 |
| Quebec | $36.00 | $34.62 | $1.38 |
| Saskatchewan | $34.62 | $33.60 | $1.02 |
| Yukon | $45.60 | $44.40 | $1.20 |
These updated thresholds replace the figures that had been in place since June 27, 2025.
Provinces With the Largest Wage Increases
Although every region saw adjustments, the increases were not equal across Canada.
Nunavut Recorded the Largest Increase
Nunavut experienced the highest increase nationwide.
The threshold rose by $3.00 per hour, increasing from $42.00 to $45.00.
Nova Scotia Experienced a Significant Jump
Nova Scotia’s wage threshold increased by $1.96 per hour.
This brings the province’s new threshold to $31.96.
British Columbia Now Has the Highest Provincial Threshold
Among Canada’s provinces, British Columbia now has the highest wage threshold at $38.40 per hour.
It is followed by Alberta at $37.50 and Ontario at $36.92.
Ontario Saw the Smallest Increase
Ontario’s wage threshold increased by only $0.92 per hour.
Although the increase is modest, it could still affect employers whose offered wages are close to the threshold.
Northwest Territories Remains Unchanged
The Northwest Territories continues to have Canada’s highest overall wage threshold at $48.00 per hour.
No changes were made to this jurisdiction in the latest update.
Why the Wage Threshold Matters
The wage threshold determines which LMIA stream an employer must use when hiring a temporary foreign worker.
Employers offering wages that meet or exceed the threshold must apply under the high-wage stream.
Employers offering wages below the threshold must submit their application under the low-wage stream.
Although this distinction may appear straightforward, the requirements for each stream differ considerably.
High-Wage LMIA Stream Explained
Employers whose offered wage meets the provincial threshold generally qualify for the high-wage LMIA stream.
This stream typically involves fewer restrictions than the low-wage stream.
Transition Plans Are Usually Required
Most employers applying through the high-wage stream must submit a transition plan.
This document explains how the employer intends to reduce future dependence on temporary foreign workers.
Examples may include increasing recruitment of Canadian workers, improving wages, investing in employee training, or expanding apprenticeship opportunities.
Some occupations and application categories are exempt from transition plan requirements.
Shorter Recruitment Requirements
Employers applying under the high-wage stream generally need to advertise available positions for four consecutive weeks before submitting an LMIA application.
This advertising period must occur within the three months preceding the application.
Standard Processing Fees
Each high-wage LMIA application requires a processing fee of $1,000 per position.
Canadian law prohibits employers from recovering this fee from temporary foreign workers.
Low-Wage LMIA Stream Has More Restrictions
Employers whose offered wage falls below the provincial threshold must apply under the low-wage LMIA stream.
This stream includes several additional compliance measures that employers should carefully review.
Eight-Week Advertising Requirement
One of the most significant changes is the recruitment requirement.
Employers must advertise positions for eight consecutive weeks before submitting a low-wage LMIA application.
This requirement doubled from the previous four-week advertising period introduced before April 2026.
Youth Recruitment Obligations
Employers must demonstrate that they made meaningful efforts to recruit young Canadians before hiring temporary foreign workers.
These recruitment activities form part of the LMIA assessment.
Workforce Cap
Businesses hiring under the low-wage stream must comply with limits on the proportion of low-wage temporary foreign workers within their workforce.
This rule is intended to encourage employers to prioritize Canadian workers wherever possible.
CMA Unemployment Rate Restrictions
Perhaps the most important restriction involves unemployment rates within Census Metropolitan Areas (CMAs).
Most low-wage LMIA applications will not be processed in CMAs where unemployment is 6 percent or higher unless the position qualifies for an exemption.
Currently, 26 of Canada’s 41 monitored CMAs meet or exceed this unemployment threshold.
As a result, many low-wage applications may face significant limitations depending on location.
Employers Must Avoid Artificial Wage Adjustments
Employment and Social Development Canada has clearly stated that employers cannot artificially increase wages simply to qualify for the high-wage stream.
The wage offered must accurately reflect the prevailing wage for that occupation and work location.
If officials determine that wages have been inflated solely to avoid additional requirements, the LMIA application may receive a negative decision.
Compliance with prevailing wage requirements remains one of the most closely reviewed aspects of every LMIA application.
What These Changes Mean for Employers
Employers planning to submit LMIA applications after July 17, 2026, should carefully review every proposed job offer.
A position that previously qualified under the high-wage stream could now fall below the revised threshold.
If this happens, employers must comply with all low-wage program requirements before applying.
Businesses should also verify unemployment rates within their work location, particularly if the position may now fall into the low-wage category.
Ignoring these updated requirements could result in application delays or refusals.
What Temporary Foreign Workers Should Know
Foreign workers should also understand how these wage threshold changes may affect future employment opportunities.
Some Job Offers May Change LMIA Categories
A job offer that qualified as high-wage before July 17, 2026, may now be classified as low-wage if the salary falls between the previous and updated threshold.
This could increase processing requirements for employers and potentially delay hiring timelines.
Existing Work Permits Are Not Affected
Workers who already hold valid Canadian work permits do not need to worry about these changes.
The updated thresholds only apply to LMIA applications submitted on or after July 17, 2026.
Previously approved work permits remain valid under their original conditions.
LMIA-Exempt Work Permits Continue Normally
Foreign nationals applying through LMIA-exempt programs, including many categories under the International Mobility Program (IMP), are not affected by these wage threshold updates.
These work permits do not require an LMIA and therefore are not subject to the high-wage or low-wage classification.
Occupations That May Qualify for Exemptions
Certain occupations and industries remain exempt from some low-wage processing restrictions.
Examples include positions in primary agriculture, construction, food manufacturing, hospitals, nursing homes, residential care facilities, caregiving occupations, permanent residence-only applications, and some short-duration or highly mobile occupations.
Employers should verify whether their position qualifies for one of these exemptions before submitting an LMIA application.
Steps Employers Should Take Before Applying
Before filing an LMIA application after July 17, employers should complete several important steps.
Review the updated wage threshold for the province or territory where the job is located.
Confirm the prevailing wage for the occupation.
Determine whether the position falls under the high-wage or low-wage stream.
Ensure recruitment activities meet the required advertising period.
Review local unemployment rates if applying under the low-wage stream.
Prepare any required transition plans or supporting documentation.
Careful planning before submission can help avoid unnecessary delays and improve the likelihood of approval.
Final Thoughts
The July 17, 2026, LMIA wage threshold update represents another major adjustment to Canada’s Temporary Foreign Worker Program.
With wage thresholds increasing across 12 of Canada’s 13 provinces and territories, more employers may find their positions shifting into the low-wage stream, bringing stricter recruitment obligations and additional compliance requirements.
Employers should carefully evaluate every job offer using the updated provincial thresholds and ensure wages remain consistent with prevailing market rates.