Ottawa, ON - In a significant move to enhance labour standards and economic competitiveness, Canada has officially increased the minimum wage thresholds under the Labour Market Impact Assessment (LMIA) program, effective June 27, 2025. This update directly affects employers under the Temporary Foreign Worker Program (TFWP) and foreign nationals seeking a work permit in Canada.

The updated wage thresholds are designed to better reflect Canada’s cost of living, align with inflation, and promote fair compensation for temporary foreign workers (TFWs) across provinces and territories.

New Wage Thresholds by Province

Under the new regulations, employers submitting LMIA applications must meet higher wage standards. Here are a few key provincial changes:

• Alberta: $36.00 (up from $35.40)
• British Columbia: $36.60 (up from $34.62)
• Ontario: $36.00 (up from $34.07)
• Quebec: $34.62 (up from $32.96)
• Northwest Territories: $48.00 (up from $47.09)
• Manitoba: $30.16 (up from $30.00)

These changes impact both high-wage and low-wage LMIA streams, and the wage thresholds determine which compliance requirements employers must meet.

Implications for Employers

The updated wage structure requires employers to:

• Adjust Budgets: Increased payroll expenses are expected, particularly in sectors like agriculture, construction, and hospitality.
• Review LMIA Streams: Some roles previously classified under the low-wage stream may now fall under high-wage, triggering more complex compliance obligations.
• Plan Strategically: Employers must review hiring plans and consult immigration experts to remain compliant with IRCC work permit requirements and labour standards.

Benefits for Foreign Workers

The wage increases bring significant advantages for temporary foreign workers:

• Higher Earnings: Improved wages boost financial stability amid rising living costs.
• Stronger Immigration Pathways: Higher wages enhance eligibility for economic immigration programs like Express Entry.
• Improved Quality of Life: More competitive wages help TFWs better integrate into Canadian society and support their families back home.

“Raising the LMIA wage thresholds is a necessary step to ensure Canada remains a top destination for global talent while protecting workers’ rights,” said a spokesperson from Immigration, Refugees and Citizenship Canada (IRCC).

Spotlight on Alberta and the Minimum Wage Impact

With Alberta’s threshold now set at $36.00, the change significantly impacts industries like energy, construction, and tech sectors that rely heavily on foreign workers. This increase complements ongoing discussions around updating the minimum wage in Alberta, aligning foreign worker compensation with broader wage growth initiatives across the province.

Navigating the Transition

Employers and foreign workers are advised to:

Employers:

• Consult with licensed immigration professionals to understand changes in compliance.
• Update internal wage policies and reclassify job roles where necessary.
• Explore local training and upskilling programs to reduce long-term dependence on foreign labour.

Foreign Workers:

• Focus on high-demand sectors such as tech, healthcare, and skilled trades.
• Leverage higher wages for permanent residency eligibility.
• Stay informed on regional wage thresholds and job opportunities.

Where to Get More Information

For detailed wage tables and LMIA application support, visit the official TFWP website or consult an authorized immigration consultant.

Canada’s Wage Reset is a Win-Win for Employers and Global Talent

Canada’s new LMIA wage thresholds, effective June 27, 2025, reinforce its commitment to fair labour practices and global competitiveness. Employers must adapt to maintain compliance, while temporary foreign workers can look forward to better pay and stronger immigration prospects.

Whether you're an employer preparing your next LMIA application or a worker pursuing a Canada work permit, understanding these changes is essential to navigating Canada’s evolving job market.

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