Canada has officially raised the minimum wage thresholds for Labour Market Impact Assessment (LMIA) applications under the Temporary Foreign Worker Program (TFWP), effective June 27, 2025. These new wage standards are designed to reflect rising living costs, inflation, and the country’s emphasis on equitable labour practices.
This move significantly affects both Canadian employers hiring through the TFWP and foreign workers applying for work permits.
What Are the New LMIA Wage Thresholds?
The LMIA program categorizes jobs under two wage streams:
- High-Wage Stream: For positions paying at or above the regional wage threshold
- Low-Wage Stream: For roles paying below the set threshold
The following table outlines the updated hourly wage thresholds by province and territory, as of June 27, 2025:
| Province/Territory | New Threshold (Post-June 27, 2025) | Previous Threshold |
|---|---|---|
| Alberta | $36.00 | $35.40 |
| British Columbia | $36.60 | $34.62 |
| Manitoba | $30.16 | $30.00 |
| New Brunswick | $30.00 | $28.85 |
| Newfoundland and Labrador | $32.40 | $31.20 |
| Northwest Territories | $48.00 | $47.09 |
| Nova Scotia | $30.00 | $28.80 |
| Nunavut | $42.00 | $42.00 |
| Ontario | $36.00 | $34.07 |
| Prince Edward Island | $30.00 | $28.80 |
| Quebec | $34.62 | $32.96 |
| Saskatchewan | $33.60 | $32.40 |
| Yukon | $44.40 | $43.20 |
Why Canada Increased LMIA Wages
The Canadian government’s goal is twofold:
- To ensure temporary foreign workers receive fair compensation relative to local economic conditions
- To attract and retain global talent in key industries facing labour shortages
Regional Impacts: Provinces Most Affected
British Columbia – +$1.98 Increase
Employers, especially in tech, healthcare, and hospitality, will need to revise salaries to remain competitive in urban hubs like Vancouver.
Ontario – +$1.93 Increase
With booming demand in finance, IT, and healthcare, Toronto and Ottawa employers face pressure to offer more competitive wages.
Alberta – +$0.60 Increase
Impacts sectors such as energy, construction, and tech. The smaller increase still requires employer planning for compliance.
Quebec – +$1.66 Increase
This affects the manufacturing and hospitality industries, with the added layer of French-language requirements for many roles.
Northwest Territories – +$0.91 Increase (Now Highest in Canada)
Reflects the extremely high cost of living and the need for skilled labor in remote northern communities.
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Implications for Employers: Rising Costs and Compliance
Employers must prepare for the following adjustments:
Budget and Salary Reviews
Organizations may face higher labour costs, especially in traditionally low-wage sectors like agriculture, food services, and hospitality.
LMIA Stream Reclassification
Jobs that previously qualified for the low-wage stream may now fall into the high-wage stream, which imposes more regulatory obligations such as transition plans for hiring Canadians.
Strategic Workforce Planning
Some employers may need to explore alternatives, including investing in local training or diversifying their recruitment efforts to offset the cost burden.
Benefits for Temporary Foreign Workers
This wage adjustment offers key advantages for TFWs, including:
Better Earnings
Increased minimum wages mean higher take-home pay, helping workers manage the high cost of living in Canada.
Pathways to Immigration
Higher salaries can improve eligibility for programs like Express Entry, especially under the Canadian Experience Class or Provincial Nominee Programs (PNPs).
Improved Quality of Life
With more financial security, workers can enjoy better housing, healthcare, and overall integration into Canadian society.
How Employers and Workers Should Prepare
For Employers:
- Reassess compensation packages to meet new regional thresholds
- Stay updated on LMIA compliance requirements
- Consult immigration experts for guidance on transition plans and stream categorization
For Foreign Workers:
- Target high-demand industries such as technology, healthcare, and skilled trades
- Consider applying to provinces offering higher wages
- Use updated salaries to strengthen immigration applications
Official Resources for LMIA Wage Information
To stay compliant and informed, consult the following:
- Authorized immigration consultants or legal professionals
- Local job market portals for real-time wage comparisons
Final Thoughts: Adapting to Canada’s Evolving Labour Market
Canada’s 2025 LMIA wage increase reflects the country’s broader goal of building a fairer, more competitive labour system. While the new wage thresholds may increase costs for employers, they are a step toward ensuring that foreign workers receive fair treatment and equitable pay.
Both employers and foreign workers must proactively adapt to the new landscape. For businesses, this means revisiting workforce planning and compliance strategies. For workers, this opens doors to better job opportunities and stronger immigration prospects.