Maple News reports that Employment and Social Development Canada (ESDC) has updated the Temporary Foreign Worker Program (TFWP) by raising wage requirements for its high-wage stream. As of November 8, 2024, employers will be required to offer foreign workers at least 20% more than the median hourly wage for the relevant occupation and region in Canada to qualify under this stream.
This policy shift is expected to impact approximately 34,000 workers across the country, potentially raising wages by $5 to $8 CAD per hour for many positions. According to Minister of Employment, Workforce Development and Official Languages Randy Boissonnault, the move aims to boost wage growth for Canadians while ensuring the TFWP complements the domestic labor market.
Previously, eligibility under the high-wage stream required that employers offer either the regional median wage for the job or a salary consistent with similarly qualified employees within the company, whichever was higher. Now, employers must exceed that median wage by 20%, maintaining the higher threshold between the two conditions.
In addition, starting October 28, 2024, employers will no longer be allowed to prove business legitimacy using attestations from professional accountants or lawyers. This step is intended to improve oversight and reduce misuse of the TFWP. Minister Boissonnault also confirmed plans to strengthen federal-provincial data-sharing agreements and employment registries to increase accountability.
The changes align with broader efforts by the Canadian government to reduce reliance on temporary residents, particularly in light of affordability and housing concerns. These efforts include placing a 6-month pause on processing low-wage Labour Market Impact Assessments (LMIAs) in cities where unemployment is at or above 6%, tightening work permit limits to 10% of an employer’s workforce, and reducing low-wage worker contracts to one year.
These updates also coincide with wider immigration policy reforms to bring down the number of temporary residents to 5% of Canada’s population. Related measures include a cap on international student study permits, new language and program criteria for post-graduation work permits, restricted eligibility for Spousal Open Work Permits (SOWPs), and the introduction of temporary resident caps in the Immigration Levels Plan.
Overall, the changes reflect an ongoing shift by federal authorities to ensure that temporary foreign worker programs serve as a complement—rather than a substitute—for Canadian labor. By increasing wage requirements for foreign hires and enforcing stricter compliance rules, the government hopes to strengthen the attractiveness of employing local talent while protecting the integrity of Canada’s immigration and labor systems.