Canada Tightens Wage Regulations For Temporary Foreign Workers

The Canadian government has announced significant updates to the Temporary Foreign Worker Program (TFWP), specifically increasing the minimum hourly wage requirements for the high-wage stream, effective 8 November 2024. Candidates applying for the high-wage stream will now need to earn salaries at least 20 per cent higher than the median wage for their position in their region, as per media reports.

Authorities estimate that this policy change will impact up to 34,000 workers across Canada, raising hourly wages by approximately $5-$8 CAD depending on the job and location. Minister of Employment, Workforce, Development and Official Languages, Randy Boissonnault, emphasized that this adjustment aims to drive wage growth for Canadian citizens.

Additionally, starting 28 October 2024, employers using the TFWP will no longer be allowed to submit attestations from professional accountants or lawyers to verify the legitimacy of their businesses, marking another key shift in the program.

Previously, the TFWP high-wage stream required candidates to earn either the median wage for their role or match the wage of existing employees in the same job with similar experience. However, under the new rules, candidates must now exceed the local median wage by at least 20 per cent or receive a salary within the designated range set by their employer, whichever is higher. Employment and Social Development Canada (ESDC) will only consider guaranteed wages, excluding overtime, tips, bonuses, or other compensation when determining eligibility.

This change is part of a broader effort by the Canadian government to encourage businesses to prioritise hiring Canadian workers. Authorities anticipate that more jobs will fall under the low-wage stream of the TFWP, which requires employers to provide additional support, including housing and transportation for workers.