Canada has updated wage thresholds for the Labour Market Impact Assessment (LMIA) program, effective November 8, 2024. These changes increase the minimum wage criteria by 20% for foreign workers, affecting recruitment strategies across all provinces and territories.
Canada has announced new wage thresholds for the Labour Market Impact Assessment (LMIA) program, which will affect employers hiring foreign talent. Effective November 8, 2024, this change requires employers in all provinces and territories to meet updated wage standards for foreign workers under the Temporary Foreign Worker Program (TFWP).
These adjustments reflect Canada’s focus on fair employment practices, addressing inflation, and adapting to the country’s evolving economic conditions. Here’s a breakdown of the new changes and what they mean for employers and temporary foreign workers (TFWs) in Canada.
Why the Change?
This update reflects Canada’s commitment to fair employment practices and keeping pace with inflation and the evolving job market. The new wage thresholds represent a 20% increase across all provinces and territories.
Understanding the New LIMA Requirements
The Temporary Foreign Worker Program (TFWP) allows Canadian employers to hire foreign workers when qualified local candidates are not available.
To do so, employers must complete a Labour Market Impact Assessment (LMIA), which assesses how hiring a foreign worker affects the Canadian job market. There are two primary streams under the LMIA process:
• High-Wage Stream: For positions paying at or above the wage threshold set by the province or territory.
• Low-Wage Stream: For roles offering wages below the provincial or territorial wage threshold.
As of November 8, the wage thresholds for both streams have been increased by 20% across all Canadian regions. Employers must ensure that the wages they offer align with these updated rates to meet LMIA requirements.
Updated LMIA Wage Thresholds Across Provinces and Territories
Below is a comparison of the wage thresholds before and after the November 8 update:
• Alberta: The wage threshold will increase from $29.50 to $35.40.
• British Columbia: New wage requirement rises from $28.85 to $34.62.
• Manitoba: Wage rates shift from $25.00 to $30.00.
• New Brunswick: Wage threshold moves from $24.04 to $28.85.
• Newfoundland and Labrador: Increase from $26.00 to $31.20.
• Northwest Territories: Wage rates go up from $39.24 to $47.09.
• Nova Scotia: Threshold changes from $24.00 to $28.80.
• Nunavut: Increase from $35.00 to $42.00.
• Ontario: Wage requirement rises from $28.39 to $34.07.
• Prince Edward Island: Threshold jumps from $24.00 to $28.80.
• Quebec: Increase from $27.47 to $32.96.
• Saskatchewan: Wage rates will go up from $27.00 to $32.40.
• Yukon: Wage threshold changes from $36.00 to $43.20.
Provincial Highlights: Key Wage Changes
Alberta: The wage threshold has jumped from $29.50 to $35.40, impacting employers in high-demand sectors like energy, technology, and construction.
British Columbia: Employers must now offer a minimum wage of $34.62 for high-wage roles, reflecting the rising cost of living and the demand for skilled workers in technology, healthcare, and service industries.
Ontario: Wage thresholds have risen from $28.39 to $34.07. This increase will particularly affect businesses in Toronto, Ottawa, and Hamilton, especially in high-demand sectors like IT, healthcare, and finance.
Quebec: With the wage threshold up from $27.47 to $32.96, industries such as manufacturing, hospitality, and service in Quebec will need to adjust their wage offers, especially to attract French-speaking talent.
Saskatchewan and Manitoba: Agriculture and resource-based economies in these provinces will face new wage thresholds, now set at $32.40 for Saskatchewan and $30.00 for Manitoba. Employers may need to revise pay scales, particularly in agriculture, mining, and logistics.
How These Changes Impact Employers and Foreign Workers
The updated wage thresholds aim to ensure fair compensation for foreign workers, reflecting the local economic conditions. Here’s what employers and TFWs need to know:
Impact on Employers
1. Budgeting Adjustments: With a 20% increase in wage thresholds, businesses must adjust their budgeting for hiring foreign talent. This change could impact recruitment plans, especially in wage-sensitive sectors.
2. Streamlined LMIA Applications: High-wage LMIA applications often have different requirements, such as training plans for Canadian workers. Employers offering wages just below the old threshold might now qualify for the high-wage stream by adjusting wages to the new rates.
3. Industry-Specific Challenges: Sectors like agriculture, hospitality, and construction—where foreign workers are often essential—could face higher operational costs due to the updated wage requirements. Employers might need to reevaluate hiring and wage strategies.
What This Means for Temporary Foreign Workers
1. Higher Wage Opportunities: The new thresholds aim to provide TFWs with competitive pay, aligning with local cost-of-living trends. This could enhance the financial stability of foreign workers in Canada.
2. Pathways to Permanent Residence: Foreign workers in higher-wage positions may find it easier to qualify for economic immigration programs that prioritize well-paying jobs, enhancing their chances for permanent residency.
Looking Ahead
These new wage thresholds ensure fair compensation for TFWs and contribute to a balanced labour market. Employers can still access needed talent, while foreign workers receive competitive wages.
Staying informed about these changes is crucial for both employers and TFWs to ensure compliance with Canada’s evolving employment standards.
Source: https://travelobiz.com/canada-increases-lmia-wage-thresholds-by-20-percent-for-temporary-foreign-workers/
