Canada Raises LMIA Wage Thresholds from Nov 8

Starting November 8, 2024, Canada is raising the minimum wage levels for the Labour Market Impact Assessment (LMIA) program, impacting employers who hire foreign workers. This change, spanning all provinces and territories, means that the minimum wages defining high-wage and low-wage job classifications in the Temporary Foreign Worker Program (TFWP) will see a 20% increase.

This adjustment is part of Canada’s strategy to maintain fair employment standards and respond to inflation and economic growth. Employers need to align their offered wages with these new benchmarks if they wish to hire through the LMIA program. The LMIA is essential for assessing how hiring temporary foreign workers (TFWs) impacts the Canadian job market, with two main streams: high-wage, where wages meet or exceed provincial levels, and low-wage, where wages are below these thresholds.

The new minimums vary across provinces. Alberta, for instance, will now require a minimum wage of $35.40 for high-wage roles, up from $29.50. This hike could challenge employers in fields like energy and technology who rely on foreign workers. In British Columbia, wages for high-wage roles will increase from $28.85 to $34.62, reflecting the province's high living expenses. Ontario’s threshold will rise to $34.07 from $28.39, which will likely put pressure on businesses in cities like Toronto and Ottawa, particularly in high-demand industries such as IT and healthcare.

Quebec’s new minimum wage for high-wage positions will be $32.96, up from $27.47. This change is significant for employers in sectors such as hospitality and manufacturing. Provinces like Saskatchewan and Manitoba, with economies tied to agriculture and natural resources, will see increases to $32.40 and $30.00, respectively. Employers in these regions must adjust their pay scales to keep attracting foreign talent for roles in mining, agriculture, and logistics.

These wage updates carry implications for employers and foreign workers alike. Businesses must reassess budgets to accommodate the higher costs associated with meeting these new thresholds. For some, this may mean adjusting salaries to qualify for the high-wage stream, which entails different requirements, including transition plans for training Canadian workers. Industries such as hospitality, agriculture, and retail may increase operational costs due to these changes, potentially affecting hiring strategies.

On the other hand, these shifts can benefit foreign workers by ensuring fair pay that reflects Canada’s current economic conditions. TFWs will earn wages comparable to Canadian workers' wages, helping them integrate better into the local economy and society. Higher earnings can also facilitate paths to permanent residency for foreign workers, as some economic immigration programs prioritize applicants with high-wage jobs.

As the November deadline approaches, businesses must stay proactive to meet these new standards. Compliance with the updated wage thresholds will be essential for employers seeking foreign talent, and it represents a step towards a balanced labour market where both foreign workers and employers benefit.