Canada Raises Wage Requirements for High-Wage Stream of Temporary Foreign Worker Program

Employment and Social Development Canada (ESDC) has announced updates to the Temporary Foreign Worker Program (TFWP). Starting November 8, 2024, those applying through the high-wage stream will need to meet new wage requirements to qualify.

The new rule requires applicants to earn at least 20% more than the median wage for their occupation, based on the location of their job. This change is expected to affect up to 34,000 workers across Canada, increasing wages by approximately $5 to $8 CAD per hour, depending on the region and type of work.

Why Is This Happening? According to Minister Randy Boissonnault, raising wage requirements is part of the government’s efforts to support wage growth for Canadian workers. These changes are designed to encourage employers to prioritize hiring Canadians for available jobs.

Additionally, the Minister announced that starting October 28, 2024, employers can no longer use attestations from professional accountants or lawyers to verify the legitimacy of their business. This change is intended to tighten oversight and prevent misuse of the TFWP.

What Are the Specific Changes? Previously, applicants for the high-wage stream had to meet one of two wage requirements:

1. Earn the median wage for their position as listed on Canada’s National Job Bank.
2. Earn a wage that falls within the range of current employees doing the same job, with similar skills and experience.
   
   

Now, the minimum requirement has been raised. Candidates must earn at least 20% more than the median wage in their area, or meet the wage range set by their employer—whichever is higher.

The government will only consider guaranteed wages for eligibility. This excludes overtime pay, tips, bonuses, commissions, and other forms of non-salary compensation.

Finding the Median Wage To find the median wage for your job, visit the Job Bank website and search for the relevant job title or National Occupation Classification (NOC) code. The hourly median wage for your position will appear, organized by area.

Why These Changes Matter The Canadian government is making these adjustments to encourage businesses to hire more Canadians. By raising wage thresholds and introducing stricter rules, the government hopes to reduce reliance on temporary foreign workers, especially in low-wage positions.

Other recent changes to the TFWP include:

• A six-month pause on processing Labour Market Impact Assessments (LMIAs) for low-wage jobs in metropolitan areas with unemployment rates of 6% or higher.
• A limit on hiring no more than 10% of an employer’s workforce through the TFWP.
• Reducing the maximum duration of employment for low-wage stream workers from two years to one year.
  
  

These changes come as Canada is also addressing broader concerns about temporary residents, including the impact on housing and affordability. As part of this effort, the government has introduced new measures, including caps on study permits, changes to Post-Graduation Work Permits (PGWPs), and tighter rules for Spousal Open Work Permits (SOWPs).

Canada is also introducing temporary resident target levels in its annual Immigration Levels Plan to manage the number of work and study permit holders in the country.

By raising wage standards and tightening eligibility criteria, Canada aims to create more opportunities for Canadian workers while ensuring the fair treatment of foreign workers.