Changes to High-Wage Programs

The last few months have seen numerous changes to various IRCC and ESDC programs, with a number of repercussions affecting the ability of employers to apply for LMIAs for temporary foreign workers.

Prior to November 2024, the provincial/territorial median hourly wage would determine if an employer would need to apply for a high-wage or low-wage LMIA. This Provincial Median was published yearly and in 2024 the range ran between $24 and $39.24 (depending on the province or territory). A high-wage LMIA application could be made if the wage offered was above this threshold. As of the November announcement, the wage offered must now be at least 20% higher than this provincial median wage (with a range between $28.80 and $47.08).

Why is this important and who will it affect? This will mostly impact positions that are in lower TEER positions where the prevailing wage for that position is now lower than this new threshold. If the employer is unable to increase the wage to the new threshold, the only other option would be to assess if a low-wage LMIA application could be made. Due to several changes within the low-wage stream, a low-wage LMIA application might not be available or feasible. Additionally, the length of the work permit through a low-wage LMIA is of a shorter duration than the high-wage work permit which is not beneficial to the employer or foreign worker.

Additionally, the ESDC will no longer accept a CPA or lawyer attestation as proof of business legitimacy for an LMIA application. Employers must now provide alternative documentation to prove that they are providing a good or service in Canada and have the financial ability to pay the Temporary Foreign Worker’s salary.

These changes and measures to the high-wage LMIA program have been created to reduce the number of foreign workers coming to Canada and ensure the legitimacy of the need for foreign workers. While not as far-reaching as the low-wage changes, both employers and applicants need to be aware of these changes and negotiate their salaries accordingly to ensure they would be eligible for the high-wage stream.

Penned by Dianne Olsen, Senior RCIC at ICL Immigration Inc.

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