Canada to Raise Minimum Wage for Temporary Foreign Workers in High-Wage Stream
OTTAWA – The Canadian government is set to increase the minimum hourly wage required for temporary foreign workers in the high-wage stream of the Temporary Foreign Worker (TFW) program. The adjustment, effective November 8, aims to encourage employers to prioritize hiring Canadian workers.
Currently, under the high-wage Labour Market Impact Assessment (LMIA) stream, employers must pay at least the median wage of their province to qualify for hiring foreign workers. However, according to an unnamed government official, Employment Minister Randy Boissonnault will announce on Tuesday that the new wage threshold will rise to 20% above the provincial median hourly wage.
In Ontario, for example, where the median hourly wage stands at $28.39, employers will soon be required to offer at least $34.07 per hour to hire foreign workers under this program.
A Shift Towards Prioritizing Domestic Workforce
The federal government’s objective with these wage adjustments is to reduce reliance on temporary foreign labor and encourage businesses to increase recruitment of Canadian workers. This move follows criticism directed at the Liberal government for expanding the number of temporary residents in Canada, which some argue has exacerbated housing shortages and driven up living costs.
The TFW program has also faced scrutiny over alleged mistreatment of foreign workers.
Employers hiring foreign workers through the LMIA stream must demonstrate that they could not find suitable Canadian candidates for the position. The upcoming wage increase will apply to 34,000 workers under the high-wage stream, according to government estimates. While current work permits will remain unaffected, renewals will be subject to the new wage rules.
Surge in Temporary Foreign Workers Amid Tightening Rules
Public data from Immigration, Refugees and Citizenship Canada (IRCC) shows that 183,820 temporary foreign worker permits were issued in 2023, a sharp increase from 98,025 permits in 2019, reflecting an 88% rise over four years.
The upcoming change follows other efforts to limit the number of temporary residents, including restrictions on the percentage of low-wage foreign workers in certain sectors and eliminating permits in metropolitan regions with high unemployment. However, the new wage rules will not impact workers in agriculture, who have traditionally been exempt from similar changes.
This policy shift signals the government’s continued efforts to balance economic needs with labor market protections while addressing concerns about the growing reliance on temporary workers.
Source : The Canadian Press
