ESDC raises wage requirements for high-wage stream of the Temporary Foreign Worker Program

Employment and Social Development Canada (ESDC) has made more changes to the Temporary Foreign Worker Program (TFWP), including raising the minimum hourly wage requirements for the high-wage stream of the TFWP.

Effective November 8, candidates applying through the high-wage stream of the TFWP will need to earn hourly salaries at least 20% higher than the median wage for their position relative to where they work, to be eligible.

The federal government estimates that this change will impact up to 34,000 workers across Canada, resulting in an hourly wage increase between $5-$8 CAD for those who remain in the high-wage stream (depending on the area of work).

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“…By raising the threshold for high-wage stream positions, we are supporting wage growth for Canadians,” said Minister of Employment, Workforce, Development and Official Languages, Randy Boissonnault.

In addition to the above change, the Minister also announced that starting October 28th, 2024, employers in the TFWP will no longer be able to use attestations from professional licensed accountants and/or lawyers to prove the legitimacy of their business.

Minister Boissonnault also expressed his intention for the TFWP to build on existing information-sharing agreements with provincial and territorial partners, and employment registries, to further tackle misuse and abuse within the program.

Specific changes

Previously to be eligible under the high-wage stream of the TFWP, candidates needed to earn either*:

• The median wage for their position, in their area, as listed on Canada’s National Job Bank; or
• A wage within the wage range that current employees at the same employer (hired for the same job, with the same skills and years of experience, and who work at the same location) earn.

*To be eligible under the high-wage stream, employers must pay candidates the higher wage derived from the two options.

As of today’s announcement, candidates will now need to at least exceed the median wage in their area by 20% or be paid a wage within the eligibility range of wages at their employer’s business, as detailed above (whichever wage is higher).

Note: Under the TFWP, ESDC only considers guaranteed wages for eligibility, meaning the wage required for eligibility does not take into account:

• Overtime wages;
• Tips;
• Benefits;
• Profit sharing;
• Bonuses;
• Commissions; or
• Other forms of compensation.

How can candidates find the median wage for my position, in my area?

To find the median wage for an occupation on the Job Bank:

1. Visit the “Compare wages” section on Job Bank here.
2. In the “Job search” field, enter the job title or National Occupation Classification (NOC)* code (2021 version) that best matches the duties and requirements of the position searched for. Pay careful attention to job descriptions to ensure choosing the right occupation title.
3. The hourly median wage will appear in the middle column, organized by community or area. If the median wage is listed as “n/a,” check the provincial or territorial wage. If that is also unavailable, refer to the national wage for the position.
4. If the position demands additional skills and experience beyond what the NOC description specifies, the offered wages should account for these added requirements.

*The NOC is Canada’s system for categorizing and describing occupations in the country, based on their required training, education, experience, and responsibilities (TEER).

Why is Canada pursuing this change to the TFWP?

Immigration Refugees and Citizenship Canada (IRCC) and their counterparts at ESDC have made a number of changes this year to the TFWP, in particular, to incentivize Canadian businesses to hire and employ more Canadian workers.

ESDC expects that today’s announcement will result in a greater number of jobs falling under the stricter rules of the low-wage stream of the TFWP; under which employers must provide greater support to workers related to housing and transportation—which the department hopes in turn will incentivize more hiring of Canadian workers for the same position.

These changes include:

• A six-month pause on the processing of Labour Market Impact Assessments (LMIAs) in the low-wage stream of the TFWP, destined for metropolitan areas with an unemployment rate of 6% or higher;
• Enforcing a cap allowing employers to hire no more than 10% of their workforce through the TFWP; and
• Reducing the maximum duration of employment for workers hired through the low-wage stream to one year (from the previous two years).

These changes also come at a time when Canada is looking to reign in its temporary resident (those on a work or study permit) levels to 5% of the country’s total population in response to growing concerns around the availability of housing and general affordability in the country.

To this end, the government has implemented a number of changes this year including:

• The implementation of a study permit cap for new international students;
• The introduction of field of study and language requirements for the issuance of Post-Graduation Work Permits (PGWPs);
• Changes in eligibility for the issuance of some Spousal Open Work Permits (SOWPs); and
• The historic introduction of temporary resident target levels in the annual Immigration Levels Plan.

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