Canada introduces new wage requirements under the Temporary Foreign Worker Program

The Government of Canada updates the Temporary Foreign Worker (TFW) Program Workforce Solutions Road Map to better reflect current labour market conditions and the economic outlook for the future. These extended measures will be in place until August 30, 2024, and will be reviewed as labour market and economic conditions continue to evolve in the following months. They include:

• continuing to allow employers in seven sectors with demonstrated labour shortages, such as food manufacturing, to hire up to 30 per cent of their workforce through the TFW Program for positions under the provincial or territorial median hourly wage;
• maintaining the maximum duration of employment for positions under the provincial or territorial median hourly wage at up to two years; and
• adjusting the Labour Market Impact Assessment (LMIA) validity period from the current 18-month maximum to a maximum of 12-months to better respond to the labour market.

Along with these temporary measures and to better support workers and address concerns of wage suppression, employers will now be required as of January 1, 2024, to annually review temporary foreign workers’ wages to ensure that they reflect increases to prevailing wage rates for their given occupation and region of work. Through periodic wage increases, these reviews will ensure that employers continue to pay temporary foreign workers at the prevailing wage level throughout their period of employment.

The TFW Program Workforce Solutions Road Map helps employers respond to current labour market needs, while helping to ensure Canadian jobs and wages are prioritized. Market conditions will continue to be carefully monitored to ensure the program adapts to changes in the Canadian economy while protecting temporary foreign workers in Canada.

“Temporary foreign workers are essential to Canada’s economy, and many sectors continue to rely on their contribution when faced with persistent job vacancies amid acute labour shortages. That is why we are extending these temporary measures for an additional 10 months. However, they will be adjusted as the labour market continues to evolve rapidly following Canada’s unprecedented economic recovery. At the same time, we are also introducing permanent new wage requirements that will require employers to review wages annually when prevailing wages go up, in order to avoid wage suppression and ensure that workers’ wages are protected and can grow. Employers must understand that the Temporary Foreign Worker Program should be supporting wage growth in this country, not preventing it,” said Randy Boissonnault, minister of employment, workforce development and official languages.