New LMIA Wage Threshold Takes Effect on July 17, 2026: Here's What Employers Need to Know
Canadian employers planning to hire foreign workers through the Temporary Foreign Worker Program (TFWP) should be aware of an important policy update. The New LMIA Wage Threshold 2026 takes effect on July 17, 2026, changing the hourly wage employers must offer to determine whether a position qualifies under the High-Wage LMIA or Low-Wage LMIA stream.
Although the changes may appear modest in some provinces, they can significantly affect how an application is processed. A position that previously qualified as a High-Wage LMIA may fall into the Low-Wage stream after July 17, bringing additional recruitment obligations, employer restrictions, and a shorter maximum work permit duration.
The wage threshold is one of the most important factors in a Labour Market Impact Assessment (LMIA) application because it determines which program requirements apply. Employers offering wages close to the current threshold should review their compensation before submitting an application to avoid unexpected delays or additional compliance requirements.
This guide explains the LMIA wage changes, how the updated Temporary Foreign Worker Program wage threshold affects employers, and what steps businesses should take before submitting an LMIA application under the updated rules.
What Is the New LMIA Wage Threshold 2026?
Beginning July 17, 2026, Employment and Social Development Canada (ESDC) will apply new wage thresholds across Canada's provinces and territories. These updated thresholds are based on the provincial or territorial median hourly wage plus 20 percent, reflecting changes in labour market conditions and wage data.
When an employer submits an LMIA application, the hourly wage offered to the foreign worker is compared against the applicable provincial threshold.
- If the wage is at or above the threshold, the application is processed under the High-Wage LMIA stream.
- If the wage falls below the threshold, it is processed under the Low-Wage LMIA stream.
This classification affects much more than wage calculations. It determines the employer obligations, recruitment requirements, work permit duration, and whether the LMIA application can even be processed in certain regions.
Why Does the LMIA Wage Threshold Change?
The wage threshold is periodically updated to reflect changes in provincial and territorial labour markets.
As wages increase across Canada, Employment and Social Development Canada (ESDC) updates the thresholds to ensure employers hiring temporary foreign workers continue offering competitive wages that align with Canadian labour market conditions.
Rather than remaining fixed, these thresholds are recalculated using updated provincial median wage information. This helps maintain fairness between Canadian workers and temporary foreign workers while supporting the objectives of the Temporary Foreign Worker Program.
Who Is Affected?
The updated wage thresholds affect several groups involved in Canada's temporary foreign worker system.
1. Canadian Employers
Employers planning to hire foreign workers through an LMIA should verify that the wage offered still qualifies under the intended LMIA stream after July 17, 2026.
Even a relatively small increase in the required wage may change an application from the High-Wage stream to the Low-Wage stream, resulting in additional employer obligations.
2. Temporary Foreign Workers
Foreign workers with job offers supported by an LMIA may also be affected. Depending on whether the application falls under the High-Wage or Low-Wage stream, the maximum work permit duration and the employer's eligibility to proceed with the application may differ.
3. Human Resources and Recruitment Professionals
Businesses that regularly recruit internationally should review their wage structures, recruitment plans, and hiring budgets before submitting new LMIA applications to ensure compliance with the updated requirements.
What Changes on July 17, 2026?
On July 17, 2026, updated provincial and territorial wage thresholds officially take effect for all new LMIA applications received on or after that date.
The submission date—not the recruitment date or job offer date—determines which wage threshold applies.
- Applications received before July 17, 2026 will be assessed using the previous wage thresholds.
- Applications received on or after July 17, 2026 will be assessed using the updated thresholds.
This distinction is especially important for employers preparing applications close to the implementation date.
Updated LMIA Wage Thresholds by Province and Territory
| Province/Territory | Before July 17, 2026 | Effective July 17, 2026 |
|---|---|---|
| Alberta | $36.00 | $37.50 |
| British Columbia | $36.00 | $38.40 |
| Manitoba | $30.16 | $31.33 |
| New Brunswick | $30.00 | $31.73 |
| Newfoundland and Labrador | $32.40 | $33.60 |
| Northwest Territories | $48.00 | $48.00 |
| Nova Scotia | $30.00 | $31.96 |
| Nunavut | $42.00 | $36.92 |
| Ontario | $36.00 | $31.20 |
| Prince Edward Island | $30.00 | $36.00 |
| Quebec | $34.62 | $34.62 |
| Saskatchewan | $33.60 | $34.62 |
| $44.40 | $45.60 |
The table above already reflects the required 20 percent increase over the provincial median wage, so employers do not need to calculate the adjustment separately.
Why These Changes Matter
Even small increases in the wage threshold can affect which LMIA stream applies.
For example, an employer in Ontario offering $36.50 per hour would have qualified for the High-Wage LMIA stream before July 17, 2026, when the threshold was $36.00.
After the threshold increases to $36.92, that same wage offer would instead fall under the Low-Wage LMIA stream unless the employer increases the offered wage.
This change can trigger additional employer requirements, including:
- Longer recruitment periods
- Additional advertising obligations
- Low-Wage program caps
- Regional eligibility restrictions
- Shorter maximum work permit duration
For employers planning to submit an LMIA application around July 17, reviewing wage offers in advance can help prevent unexpected complications.
How Does This Affect High-Wage and Low-Wage LMIA Applications?
One of the most significant consequences of the Canada LMIA wage increase is how it affects the stream under which an LMIA application is processed.
Understanding the difference between the High-Wage LMIA and Low-Wage LMIA streams is essential before submitting an application.
High-Wage LMIA
A position qualifies under the High-Wage LMIA stream when the hourly wage offered meets or exceeds the applicable provincial or territorial wage threshold.
Employers applying under this stream generally benefit from fewer operational restrictions than those applying under the Low-Wage stream.
Some key characteristics include:
- Maximum work permit validity of up to three years, depending on the job offer.
- No restriction related to the unemployment rate in a Census Metropolitan Area (CMA).
- A required Transition Plan, outlining how the employer intends to reduce reliance on temporary foreign workers over time.
- A minimum recruitment period of four consecutive weeks before submitting the LMIA application.
For many employers, maintaining a wage above the provincial threshold may simplify the application process and provide greater hiring flexibility.
Low-Wage LMIA
When the offered wage falls below the applicable threshold, the position is processed under the Low-Wage LMIA stream.
While employers can still hire foreign workers under this stream if they meet all program requirements, additional conditions apply.
These include:
- A maximum work permit duration of up to one year.
- Recruitment and advertising requirements that are generally more extensive, including advertising for at least eight weeks and targeting multiple recruitment methods.
- Employer caps limiting the proportion of Low-Wage temporary foreign workers at a work location. In most industries, this cap is 10 percent of the workforce, while certain sectors facing labour shortages may qualify for a 20 percent cap. As a temporary measure in effect through March 2027, eligible rural employers located outside Census Metropolitan Areas may hire Low-Wage temporary foreign workers for up to 15 percent of their workforce.
- Applications for Low-Wage positions will not be processed if the work location is in a Census Metropolitan Area (CMA) where the unemployment rate is 6 percent or higher.
Because of these additional requirements, employers offering wages close to the updated threshold may find it more practical to increase the wage offered rather than proceed under the Low-Wage stream.
How Do Employers Determine Which Stream Applies?
The process is straightforward:
- Identify the province or territory where the employee will work.
- Find the applicable wage threshold effective on the LMIA submission date.
- Compare the offered hourly wage with that threshold.
- If the wage meets or exceeds the threshold, the application falls under the High-Wage LMIA stream.
- If the wage is below the threshold, the application falls under the Low-Wage LMIA stream and must meet all additional program requirements.
Employers planning to hire after July 17, 2026 should complete this review before finalizing recruitment activities or submitting an LMIA application, as even a modest wage adjustment may determine which stream applies.
What Employers Should Do Before Submitting an LMIA Application
The LMIA wage threshold July 17, 2026 update means employers should carefully review their hiring plans before submitting an application. Even a small difference in the hourly wage can change whether the position falls under the High-Wage or Low-Wage stream, resulting in different program requirements.
Taking a proactive approach can help minimize delays, avoid unnecessary costs, and improve the likelihood of a successful LMIA application.
1. Review Your Offered Wage
The first step is to compare the hourly wage you intend to offer against the updated wage threshold for the province or territory where the employee will work.
For example, if your business in Ontario plans to offer $36.50 per hour, that wage would qualify as High-Wage before July 17, 2026. However, once the new Ontario threshold of $36.92 takes effect, the same position would fall into the Low-Wage stream unless the wage is increased.
Reviewing compensation before submitting your LMIA application can help you avoid unexpected changes in program requirements.
2. Confirm Which LMIA Stream Applies
Once you've reviewed your wage, determine whether your application belongs under the High-Wage LMIA or Low-Wage LMIA stream.
This classification affects:
- Recruitment requirements
- Employer obligations
- Maximum work permit duration
- Processing eligibility in certain regions
- Compliance requirements throughout employment
Knowing your stream before advertising the position allows you to prepare the correct documentation from the beginning.
3. Review Recruitment and Advertising Requirements
Recruitment is one of the most important parts of the LMIA process.
If your position falls under the High-Wage stream, employers must advertise the position for a minimum of four consecutive weeks and prepare a Transition Plan outlining how they intend to reduce reliance on temporary foreign workers over time.
If your application falls under the Low-Wage stream, recruitment requirements become more extensive. Employers must advertise for at least eight weeks and ensure their recruitment efforts reach multiple audiences in accordance with Employment and Social Development Canada (ESDC) requirements.
If you decide to increase the offered wage after recruitment has already begun, you may need to advertise the position again using the updated wage.
4. Verify Regional Eligibility
Employers applying under the Low-Wage stream should also determine whether the work location is within a Census Metropolitan Area (CMA) where the unemployment rate is 6 percent or higher.
In these locations, ESDC does not process Low-Wage LMIA applications.
If your business is located in a restricted CMA, increasing the offered wage so the position qualifies under the High-Wage stream may be the most practical solution.
5. Review Your Workforce Cap
Employers hiring through the Low-Wage stream must also comply with limits on the number of temporary foreign workers employed at a particular work location.
Generally:
- Most employers may employ Low-Wage temporary foreign workers for up to 10 percent of their workforce.
- Certain industries experiencing labour shortages may qualify for a 20 percent cap.
- Through March 2027, eligible rural employers located outside Census Metropolitan Areas may hire Low-Wage temporary foreign workers for up to 15 percent of their workforce.
Understanding these limits before applying can help prevent unnecessary refusals.
6. Budget for Potential Wage Adjustments
Some employers may find that increasing wages slightly is more practical than meeting all of the additional requirements associated with the Low-Wage stream.
While increasing wages may raise payroll costs, it may also simplify recruitment obligations, eliminate certain processing restrictions, and support longer work permits for foreign workers.
Every business has different operational needs, so employers should evaluate which option best supports their workforce planning and long-term hiring strategy.
Need Help Preparing an LMIA Application?
If your business plans to hire a foreign worker after July 17, 2026, it's important to review whether your offered wage still qualifies under the High-Wage LMIA stream. Even a small wage increase could change your application requirements and affect how your LMIA application is processed.
At Foothills Immigration, we help Canadian employers navigate LMIA requirements with practical, reliable guidance tailored to their hiring needs.
Our team can assist with:
- LMIA eligibility assessments
- Wage threshold reviews
- Recruitment and advertising guidance
- High-Wage and Low-Wage LMIA applications
- Employer compliance support
- Work permit assistance after LMIA approval
Whether you're hiring your first temporary foreign worker or expanding your workforce, professional guidance can help reduce delays, avoid costly mistakes, and improve your confidence throughout the LMIA process.
Contact Foothills Immigration today to discuss your hiring goals and receive personalized support for your LMIA application.
Final Thoughts
The New LMIA Wage Threshold 2026 introduces important changes that Canadian employers should understand before hiring foreign workers through the Temporary Foreign Worker Program. Effective July 17, 2026, updated provincial and territorial wage thresholds will determine whether an LMIA application falls under the High-Wage or Low-Wage stream, influencing recruitment requirements, work permit duration, and, in some regions, whether an application can proceed.
For employers offering wages close to the new thresholds, reviewing compensation before submitting an application is essential. A relatively small wage adjustment may help avoid additional obligations associated with the Low-Wage stream and support a smoother hiring process.
If you're planning to submit an LMIA application after July 17, 2026, taking the time to review the updated requirements can help your business remain compliant and avoid unnecessary delays. If you need assistance understanding the new rules or preparing your application, Foothills Immigration is here to help you navigate every step of the process with confidence.
