Starting on July 17, Canada will tighten low-wage hiring and raise wage standards for foreign workers.
Beginning on July 17, 2026, Canada strengthened low-wage hiring regulations and raised TFWP wage levels, which will have an impact on international companies and workers, particularly Indians looking for LMIA-based positions.
There are now more stringent requirements for foreign workers wishing to relocate to Canada through the Temporary Foreign Worker Program (TFWP). Employers will find it more difficult to hire foreign workers for lower-paying positions after Canada changed the minimum wage limits for the program's low-wage stream on July 17, 2026.
As part of Canada's ongoing efforts to lessen its reliance on temporary foreign labor, the reform is applicable to all provinces and territories.
Apply Now for Higher Wage Thresholds
In order to hire workers through the low-wage stream, firms are required by the amended regulations to offer at least 120% of the province or territory median hourly salary.
The following are a few of the new hourly wage thresholds:
Companies that pay less than these thresholds are subject to more stringent low-wage stream regulations, and in many places, they may be prohibited from hiring foreign employees altogether.
Cities with High Unemployment Continue to Prohibit Hiring
In census metropolitan regions with unemployment rates of 6% or more, Canada continues to deny new low-wage TFWP applications and work permit renewals. Numerous significant cities are covered by the restriction, including:
Toronto
Ottawa-Gatineau
Montréal
Calgary
Edmonton
Vancouver
Hamilton
London
Windsor
Oshawa
Kitchener-Cambridge-Waterloo
Saskatoon
A number of additional cities in Saskatchewan, British Columbia, Ontario, Alberta, New Brunswick, and Newfoundland and Labrador are also impacted.
If they fulfill all federal standards, employers outside of these areas are still able to hire under the low-wage stream.
Additional Requirements for Employers
Companies that use the low-wage stream need to:
Limit the percentage of temporary foreign workers at each location to 10%, with a ceiling of 20% for specific industries like construction and food production.
During the preceding three months, post job advertisements for a minimum of eight weeks.
Hire workers between the ages of 15 and 30, Indigenous people, and people with impairments.
All qualified Job Bank applicants with a two-star or higher rating are invited.
Provide decent, reasonably priced housing.
Pay for foreign employees' round-trip transportation expenses.
Up to 15% of qualified rural employers in participating provinces may be hired through the program under a temporary measure that expires on March 31, 2027.
What This Signifies for Indian Employees
With direct flights from cities like Delhi, Mumbai, and Bengaluru to Toronto and Vancouver, Canada continues to be one of the most popular foreign employment locations for Indians. However, these reforms may result in fewer chances for workers looking for lower-paying positions, especially in large cities where hiring limitations are still in effect.
Under the TFWP, people with specialized talents or offers that satisfy the higher salary thresholds are probably going to encounter less challenges.
How the Program for Temporary Foreign Workers Operates
When eligible Canadian citizens or permanent residents are not available, the TFWP permits Canadian employers to hire foreign people.
Employers are required to acquire a Labour Market Impact Assessment (LMIA) prior to recruiting. A work permit linked to the particular employer and position is given to the foreign worker after approval. Employers are required to pay either the same wage received by Canadians performing the same work or the regional median wage for the occupation, whichever is higher.
Travunited Take
Another obvious message from Canada is that low-wage hiring will be scrutinized more closely. Although we think qualified Indian workers are still in a good position, businesses and candidates now need to get ready for increased salary demands and tougher compliance.
