Canada raises wage requirements for high-wage stream of Temporary Foreign Worker Program

Canada has announced more changes to the Temporary Foreign Worker Program (TFWP), including raising the minimum hourly wage requirements for the high-wage stream of the TFWP.

Effective November 8, candidates applying through the high-wage stream of the TFWP will need to earn hourly salaries at least 20% higher than the median wage for their position relative to where they work, to be eligible, as per CIC News report.

Authorities estimate that this change will impact up to 34,000 workers across Canada, resulting in an hourly wage increase between $5-$8 CAD for those who remain in the high-wage stream (depending on the area of work).

“...By raising the threshold for high-wage stream positions, we are supporting wage growth for Canadians,” said Minister of Employment, Workforce, Development and Official Languages, Randy Boissonnault.

In addition to the above change, the Minister also announced that starting October 28th, 2024, employers in the TFWP will no longer be able to use attestations from professional licensed accountants and/or lawyers to prove the legitimacy of their business.

Previously, to qualify under the high-wage stream of the TFWP, candidates had to earn either the median wage for their position in their area, as listed on Canada’s National Job Bank, or a wage that matched what current employees at the same employer earned for the same job, skills, and experience level. To be eligible, employers were required to pay candidates the higher of these two wage options.

However, following today’s announcement, candidates must now exceed the median wage in their area by at least 20% or receive a wage within the eligibility range set by their employer, whichever is higher. It's important to note that under the TFWP, Employment and Social Development Canada (ESDC) only considers guaranteed wages for eligibility; this means that factors like overtime wages, tips, benefits, profit sharing, bonuses, commissions, and other forms of compensation are not taken into account when determining wage eligibility.

Why is Canada making the change?
Canada has made a number of changes this year to the TFWP, in particular, to incentivize Canadian businesses to hire and employ more Canadian workers.

Canada expects that today’s announcement will result in a greater number of jobs falling under the stricter rules of the low-wage stream of the TFWP; under which employers must provide greater support to workers related to housing and transportation—which the department hopes in turn will incentivize more hiring of Canadian workers for the same position, says CIC News report.

These changes include:

• A six-month pause on the processing of Labour Market Impact Assessments (LMIAs) in the low-wage stream of the TFWP, destined for metropolitan areas with an unemployment rate of 6% or higher;
  
• Enforcing a cap allowing employers to hire no more than 10% of their workforce through the TFWP; and
  
• Reducing the maximum duration of employment for workers hired through the low-wage stream to one year (from the previous two years).