LMIA Wage Thresholds Increase Across Canada, Effective July 17

Effective July 17, 2026, Employment and Social Development Canada (ESDC) has implemented updated hourly wage thresholds that determine whether a Labour Market Impact Assessment application qualifies as a high-wage or low-wage position. These changes affect which stream employers must use and which benefits apply to foreign workers hired under the program.

The wage threshold updates reflect Canada's commitment to ensuring that TFWP positions offer competitive compensation aligned with current labour market conditions. Employers must now use the new thresholds when determining their LMIA classification for any application submitted on or after July 17, 2026.

Updated High-Wage Thresholds by Province and Territory

The following provinces and territories saw increases in their high-wage thresholds:

Eastern Canada: Nova Scotia increased from $30.16 to $31.73 per hour, New Brunswick from $30.00 to $31.73 per hour, and Prince Edward Island from $31.00 to $33.50 per hour.

Central Canada: Ontario rose from $35.92 to $36.92 per hour, and Quebec increased from $34.62 to $36.00 per hour.

Prairies: Manitoba moved from $30.16 to $31.33 per hour, and Saskatchewan increased from $32.48 to $33.50 per hour.

Western Canada: Alberta climbed from $36.00 to $37.50 per hour, and British Columbia rose from $36.60 to $38.40 per hour.

Northern territories: Yukon increased from $44.40 to $45.60 per hour, while the Northwest Territories and Nunavut also saw corresponding adjustments.

Why These Thresholds Matter

The high-wage threshold is not an arbitrary number. It is tied to the median hourly wage for each province and territory, based on data from Statistics Canada's Labour Force Survey. When the median wage rises, the threshold rises with it. This means that a position that qualified as high-wage last year may now fall into the low-wage stream, requiring a completely different LMIA process.

The distinction between high-wage and low-wage streams is not merely administrative. It affects every aspect of the foreign worker's employment: the length of the work permit, whether the employer must provide transportation costs, whether housing must be offered, and whether the worker can transition to a longer-term position. Low-wage positions also face a cap: employers can only have a certain percentage of their workforce on TFWP permits, and in regions with unemployment above 6 percent, ESDC may refuse to process low-wage LMIA applications entirely.

Historical Context: How Thresholds Have Changed

The wage threshold system was introduced as part of broader reforms to the Temporary Foreign Worker Program. Over the past three years, thresholds have risen steadily across all provinces. In 2024, British Columbia's threshold sat at $34.62 per hour. Today it stands at $38.40, an increase of more than 11 percent. Alberta has seen a similar trajectory, moving from $33.50 to $37.50 over the same period. These increases reflect real wage growth in the Canadian economy, but they also mean that employers who were comfortably above the threshold last year may now find themselves classified differently.

For employers in sectors like hospitality, retail, and agriculture, where wages typically fall below the median, the threshold increases tighten the squeeze. Positions that were borderline high-wage in 2025 may now be firmly in the low-wage category, triggering additional recruitment requirements and shorter work permit durations.

Practical Impact for Employers and Workers

When an employer submits an LMIA after July 17, 2026, the position is classified based on the updated thresholds. If a position falls below the high-wage threshold, it is considered a low-wage position. This classification affects several program elements: the stream under which the application is processed, the recruitment and documentation requirements the employer must meet, and the work permit validity period and benefits available to the hired foreign worker.

ESDC's official median wage tool displays all provincial and territorial thresholds and has been updated to reflect the July 17, 2026, changes. Employers should consult this tool before submitting any LMIA application to confirm which stream applies.

Employers planning to hire under the TFWP should review the updated thresholds in their province or territory immediately to ensure their job offers meet the high-wage threshold if they wish to qualify for the high-wage stream. Positions classified as low-wage face tighter processing timelines and regional restrictions in some labour markets. Employers should also factor in that the offered wage must meet or exceed the prevailing wage for the specific occupation in the region, not just the provincial median.