Canada Raises Wage Rules for Foreign Workers, Tightens Low-Wage Hiring From July 17

Foreign workers planning to move to Canada through the Temporary Foreign Worker Program (TFWP) now face tougher entry conditions. From July 17, 2026, Canada has raised the minimum wage thresholds for the program’s low-wage stream, making it harder for employers to hire foreign workers for lower-paying jobs.

The change applies across all provinces and territories and forms part of Canada’s continued effort to reduce reliance on temporary foreign labour.

Higher Wage Thresholds Now Apply

Under the revised rules, employers must offer at least 120% of the provincial or territorial median hourly wage to hire workers through the low-wage stream.

Some of the new hourly wage thresholds include:

Employers offering wages below these levels must follow stricter low-wage stream rules, and in many areas, they may no longer be able to hire foreign workers at all.

Hiring Ban Continues in High-Unemployment Cities

Canada continues to block new low-wage TFWP applications and work permit renewals in census metropolitan areas where unemployment is 6% or higher. The restriction covers many major cities, including:

• Toronto
• Ottawa-Gatineau
• Montréal
• Calgary
• Edmonton
• Vancouver
• Hamilton
• London
• Windsor
• Oshawa
• Kitchener-Cambridge-Waterloo
• Saskatoon

Several other cities across Newfoundland and Labrador, New Brunswick, Ontario, Alberta, British Columbia and Saskatchewan are also affected.

Employers outside these regions can still hire under the low-wage stream if they meet all federal requirements.

Extra Conditions for Employers

Businesses using the low-wage stream must also:

• Limit temporary foreign workers to 10% of their workforce at each location, with a 20% cap for selected sectors such as construction and food manufacturing.
• Advertise jobs for at least eight weeks during the previous three months.
• Recruit Indigenous people, persons with disabilities and workers aged 15 to 30.
• Invite all eligible Job Bank candidates with a rating of two stars or higher.
• Provide suitable, affordable housing.
• Cover round-trip transportation costs for foreign workers.

A temporary measure running until March 31, 2027, allows eligible rural employers in participating provinces to hire up to 15% of their workforce through the program.

One trend has become hard to ignore: Canada is steadily shifting away from large-scale low-wage temporary migration and placing greater pressure on employers to hire locally first.

What This Means for Indian Workers

Canada remains one of the top overseas work destinations for Indians, with direct flights connecting cities such as Delhi, Mumbai and Bengaluru to Toronto and Vancouver. But these changes mean workers seeking lower-paid jobs may find fewer opportunities, particularly in major urban centres where hiring restrictions remain in place.

Those with specialised skills or offers that meet the higher wage thresholds are likely to face fewer obstacles under the TFWP.

How the Temporary Foreign Worker Program Works

The TFWP allows Canadian employers to recruit foreign nationals when qualified Canadian citizens or permanent residents are unavailable.

Before hiring, employers must obtain a Labour Market Impact Assessment (LMIA). Once approved, the foreign worker receives a work permit tied to the specific employer and job. Employers must pay either the regional median wage for the occupation or the same wage earned by Canadians doing the same work, whichever is higher.

Travelobiz Take

We see Canada sending another clear message: low-wage hiring will face tighter scrutiny. We believe skilled Indian workers remain well placed, but employers and applicants must now prepare for stricter compliance and higher pay expectations.