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ESDC increased the provincial high-wage v. low-wage wage thresholds on July 17, 2026.
To apply for a high-wage stream LMIA after July 17, the base wage must meet or exceed the new provincial wage threshold. If the prevailing/median wage for the NOC and the location of the job is higher than the provincial high-wage v. low-wage threshold, the employer must offer that higher prevailing wage.
Given that ESDC will not process most low-wage stream applications in metropolitan areas that have an unemployment rate of more than 5.9%, the only potential LMIA option in many locations is under the high-wage stream.
However, ESDC warns employers that simply raising the base salary to allow a high-wage LMIA to be filed may lead to a refusal of the LMIA application:
“Offering a higher wage to temporary foreign workers isn’t sufficient to qualify under the stream for high-wage positions. Wages offered to temporary foreign workers should be similar to wages paid to Canadians and permanent residents hired for the same job and work location, and with similar skills and years of experience. Adjusting the offered wage to fit a specific program stream or to avoid a program requirement could lead to a negative LMIA decision.”
New provincial high-wage v. low-wage threshold figures
The July 17 updated provincial high-wage v. low-wage thresholds, along with annualized base salary equivalents based on different regular work week hours, are set out below.
|
Province/Territory |
Hourly Wage Threshold |
Annual Equivalent |
Annual Equivalent |
Annual Equivalent |
|---|---|---|---|---|
|
Alberta |
$37.50 |
$68,250 |
$73,125 |
$78,000 |
|
British Columbia |
$38.40 |
$69,888 |
$74,880 |
$79,872 |
|
Manitoba |
$31.33 |
$57,020 |
$61,093 |
$65,166 |
|
Newfoundland and Labrador |
$33.60 |
$61,152 |
$65,520 |
$69,888 |
|
Northwest Territories |
$48.00 |
$87,360 |
$93,600 |
$99,840 |
|
Nova Scotia |
$31.96 |
$58,167 |
$62,322 |
$66,477 |
|
Nunavut |
$45.00 |
$81,900 |
$87,750 |
$93,600 |
|
Ontario |
$36.92 |
$67,194 |
$71,995 |
$76,795 |
|
Prince Edward Island |
$31.20 |
$56,784 |
$60,840 |
$64,896 |
|
Quebec |
$36.00 |
$65,520 |
$70,200 |
$74,880 |
|
Saskatchewan |
$34.62 |
$63,008 |
$67,509 |
$72,009 |
|
Yukon |
$45.60 |
$82,992 |
$88,920 |
$94,848 |
Employers should always check ESDC’s hourly wage thresholds by province and territory to ensure they have the most up to date information. The thresholds are updated once a year.
Employer takeaways
- To apply under the high-wage stream, the base wage being advertised and offered must be at or above the applicable provincial high-wage v. low-wage threshold.
- To meet the program's prevailing wage requirement, the offered base wage must be consistent with the prevailing wage rate for the occupation. Therefore, if the prevailing wage for the NOC and location of the job is higher than the provincial high-wage v. low-wage wage threshold, you must offer at least the higher prevailing wage.
- ESDC has been pushing back where employers are offering wages to meet the applicable provincial high-wage stream threshold, where the underlying NOC has a prevailing wage that is less than that. ESDC’s guidelines state that offering that higher wage is not sufficient to qualify under the stream for high-wage positions.
- This approach seems counterintuitive since the point of wage requirements is to ensure that wages are not suppressed. But a restrictive approach aligns with ESDC/IRCC stated goal of decreasing the number of foreign temporary residents in Canada.
- Employers should obtain legal advice where they are considering increasing wages to meet the high-wage stream threshold.
- Employers also need to consider what such an increase may mean for wages for other workers they employ in the same NOC and location.
- Employers may want to take steps to support the transition of eligible temporary foreign workers to permanent resident status, before a new LMIA is needed, to avoid having to go through the LMIA process.
Read the original article on GowlingWLG.com
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