Are you planning to work in Canada or hire foreign talent? The Canada Work Permit program has announced key updates to its median hourly wage requirements, effective April 2, 2024.
Starting April 2, 2024, Canada’s Temporary Foreign Worker Program (TFWP) will see an increase in the median hourly wage for work permits. This change is crucial for employers and foreign nationals alike, as it affects the application process for a Labour Market Impact Assessment (LMIA).
Provinces with the Highest Wage Increase are:
- Prince Edward Island
- Quebec
- Ontario
- British Columbia
If you’re applying for a work permit or planning to hire foreign workers, note that these provinces will have the highest new median hourly wage requirements.
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What Is LMIA (Labour Market Impact Assessment)?
To apply for a Canadian work permit, foreign nationals must need to submit an LMIA (Labour Market Impact Assessment) from their Canadian employer when they apply for their work visa.
This document proves that no Canadian worker is available to fill the position, hence the need for a foreign worker.
High-Wage and Low-Wage Streams:
Employers need to apply for an LMIA (Labour Market Impact Assessment) through ESDC (Employment and Social Development Canada). They can choose between the high-wage or low-wage stream, each with its own rules depending on how much they pay and where the job is located.
Median Hourly Wage:
The median hourly wage in a province or territory decides whether a job will be offered at a rate higher or lower than the median wage, thus influencing whether the application falls under the high-wage or low-wage LMIA stream.
New Canada Median Hourly Wage Requirements
Effective April 2, 2024, the following are the updated median hourly wage requirements.
| Province/territory | Median hourly wages effective April 2, 2024 | Median hourly wages before April 2, 2024 |
| Alberta | $29.50 | $28.85 |
| British Columbia | $28.85 | $27.50 |
| Manitoba | $25.00 | $23.94 |
| New Brunswick | $24.04 | $23.00 |
| Newfoundland and Labrador | $26.00 | $25.00 |
| Northwest Territories | $39.24 | $38.00 |
| Nova Scotia | $24.00 | $22.97 |
| Nunavut | $35.00 | $35.90 |
| Ontario | $28.39 | $27.00 |
| Prince Edward Island | $24.00 | $22.50 |
| Quebec | $27.47 | $26.00 |
| Saskatchewan | $27.00 | $26.22 |
| Yukon | $36.00 | $35.00 |
New Changes to Temporary Foreign Worker Program (TFWP) Effective May 1, 2024
Effective May 1, 2024, there are some new changes to the Temporary Foreign Worker Program (TFWP). Randy Boissonnault, who is the Minister of Employment, announced these changes.
Here’s what’s happening:
- Labour Market Impact Assessments (LMIAs), which help decide if there’s a need for foreign workers, will now be valid for six months instead of a year. This is to make sure that the demand for workers matches the reality of the job market.
- Most companies listed in the 2022 Workforce Solutions Road Map will have to hire fewer foreign workers through the TFWP’s low wage stream. Before, they could have up to 30% of their workforce from this program, but now it’s being reduced to 20%. However, this rule doesn’t apply to construction and health care companies.
- Employers who want to hire foreign workers must first explore other options. For example, they should consider hiring asylum seekers who already have permission to work in Canada before they apply for an LMIA.
LMIA Processing Times As Of February 2024
Here are the processing times for LMIAs, as of February 2024.
| Stream | Time in business days |
| Global Talent Stream | 7 |
| Agricultural stream | 12 |
| Seasonal Agricultural Worker Program | 6 |
| Permanent resident stream | 73 |
| High-wage stream | 54 |
| Low-wage stream | 54 |
Temporary Foreign Worker Program (TFWP)
When Canadian businesses face difficulty in sourcing qualified personnel domestically, they have the option to recruit foreign workers via the Temporary Foreign Worker Program (TFWP).
Employment and Social Development Canada (ESDC) evaluates employer requests to employ temporary foreign workers through its Service Canada processing centers. This evaluation involves conducting Labour Market Impact Assessments (LMIAs) to analyze the potential effects on the Canadian job market.
The Program scrutinizes regional and occupation-specific labor market data, as well as employer recruitment and advertising methods, compensation packages, working conditions, labor shortages, and the potential for knowledge and skill transfer to Canadians.
Upon completion of the assessment, ESDC grants an LMIA to the employer, authorizing them to hire a foreign worker.
Work Permit Processing Time
As of the latest update, 80% of work permit applications are processed within an average of 102 days. However, this timeframe can vary based on several factors, including the type of permit and application location.
Preparing Your Application
Here’s how to ensure a smooth application process:
- Understand the Requirements: Make sure you’re aware of the new median hourly wage requirements for your province or territory.
- Gather Necessary Documents: Prepare all required documentation, including the LMIA, if applicable.
- Consult the Latest Guidelines: Always check the most recent guidelines from ESDC and IRCC to avoid delays.
Conclusion
Changes to the median hourly wage for Canada Work Permits are important for both employers and foreign workers. It’s crucial to keep up with these updates and get ready for them.
Even though it might seem complicated, these changes are meant to make sure the job market is fair for everyone.
It’s important to plan ahead and know about these updates to have a successful application, whether you’re a foreign worker trying to work in Canada or an employer looking to hire talent from overseas.
