Highlights: Canada Raises Wage Standards for Foreign Workers: Key Updates You Should Know
- Canada has updated its wage thresholds for the Temporary Foreign Worker Program; employers must now meet new provincial rates to qualify for the high-wage stream.
- Jobs offering wages below these thresholds will be classified as low-wage and subject to additional employer obligations.
- Employers under the low-wage stream must provide housing, transportation, and other essential support to hired workers.
- These changes may impact hiring plans, especially in sectors heavily reliant on foreign labor.
- The reforms aim to align wages with Canadian standards and protect job opportunities for local workers.
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New Rules for Canada’s Temporary Foreign Worker Program Unveiled
Canada has revised the Temporary Foreign Worker Program (TFWP) to better align with domestic labor standards and ensure fair treatment of foreign workers. As part of these changes, Employment and Social Development Canada (ESDC) now requires employers to offer wages that match or exceed updated provincial and territorial median wage thresholds to qualify for the high-wage stream. This update came into effect in June 2025 and is reviewed annually.
Jobs offering wages below the threshold will fall under the low-wage stream, which comes with stricter employer obligations, such as:
- Providing adequate housing for the foreign worker.
- Covering transportation costs from the worker’s home country to the job location in Canada.
- Maintaining active compliance with workplace standards and labour protections.
Note: These changes reflect the government’s broader effort to ensure temporary workers are not underpaid or exploited, while also balancing the demand for labour in key sectors like agriculture, hospitality, and caregiving.
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Province-Wise Wage Threshold Increases under Canada’s TFWP
Canada has updated the wage thresholds for the Temporary Foreign Worker Program (TFWP), impacting how employers classify positions under high-wage or low-wage streams. These changes, effective June 27, 2025, vary across provinces and territories.
Below is a breakdown of the old and new wage thresholds, along with the percentage increase:
|
Province/Territory |
Old Threshold ($ CAD) |
New Threshold ($ CAD) |
Percentage Increase |
|
Alberta |
35.4 |
36 |
1.69% |
|
British Columbia |
34.62 |
36.6 |
5.71% |
|
Manitoba |
30 |
30.16 |
0.53% |
|
New Brunswick |
28.85 |
30 |
3.98% |
|
Newfoundland and Labrador |
31.2 |
32.4 |
3.85% |
|
Northwest Territories |
47.09 |
48 |
1.93% |
|
Nova Scotia |
28.8 |
30 |
4.17% |
|
Nunavut |
42 |
42 |
0.00% |
|
Ontario |
34.07 |
36 |
5.66% |
|
Prince Edward Island |
28.8 |
30 |
4.17% |
|
Quebec |
32.96 |
34.62 |
5.04% |
|
Saskatchewan |
32.4 |
33.6 |
3.70% |
|
Yukon |
43.2 |
44.4 |
2.78% |
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What Canada’s New Wage Rules Mean for Foreign Workers
Canada’s update to the Temporary Foreign Worker Program (TFWP) is a step toward ensuring fair wages and better working conditions for international workers. By raising the minimum wage thresholds based on each province's standards, the government wants to make sure foreign workers are paid fairly and treated with respect.
For Indian professionals planning to work in Canada, this change is important. It means you will need to stay updated on wage requirements and understand your rights under the program.
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