As of November 8, 2024, significant changes are set to affect temporary foreign workers in Canada, specifically those within the Labour Market Impact Assessment (LMIA) high-wage stream. Employment Minister Randy Boissonnault, will announce an increase in the minimum hourly wage that employers must pay.
What’s Changing?
Currently, under the high-wage labour market impact assessment (LMIA) stream, employers must pay at least the median income in their province to qualify for a permit. The new guidelines will increase this threshold to 20% above the provincial median hourly wage. For instance, in Ontario, where the median hourly wage is approximately $28.39, employers will now need to pay at least $34.07 per hour.
This change is expected to impact around 34,000 workers currently under the LMIA high-wage stream. While existing work permits will remain unaffected, the new wage requirements will apply to their renewals.
Why the Change?
The stated rationale is to incentivize employers to hire more Canadian workers instead of relying on temporary foreign workers. The Liberal government has faced criticism for increasing the number of temporary residents, which some have linked to issues such as housing shortages and rising living costs.
Broader Context
This wage increase is part of a series of measures to tighten eligibility rules for temporary residents, including international students and foreign workers. There are now over 3 million temporary residents in Canada, which is unprecedented. Recent changes have included caps on the percentage of low-wage foreign workers in specific sectors.
Employers should prepare for these changes to ensure compliance and consider how they can better support local hiring initiatives.
For anyone affected by these changes—whether you’re an employer looking to hire or a foreign worker navigating the system—staying informed about your rights and obligations is crucial.
At Jain Immigration Law, we are here to guide you through the immigration process and provide support. Contact us today at [email protected] if you have any questions about these new updates and learn more about how we can assist you.