Canada increases wage requirements for hiring foreign workers

Employers must offer 20% above the median wage to hire foreign workers under the high-wage stream

Canada increases wage requirements for hiring foreign workers

The Canadian government plans to introduce new limits on the program that allows companies to recruit high-wage foreign workers.  

As reported by Financial Post, Employment Minister Randy Boissonnault will announce that businesses hiring through the high-wage stream of the temporary foreign worker program must offer salaries at least 20 per cent higher than the median wage in each province.  

A senior government official shared this information ahead of the public announcement. 

Currently, employers participating in the program can offer the provincial median wage after completing a “labour market impact assessment” to prove that Canadian workers cannot fill the positions.  

This upcoming change represents a stricter approach to managing temporary foreign workers, with the government aiming to slow population growth following a recent surge in non-permanent residents. 

Prime Minister Justin Trudeau’s government has faced mounting criticism for the sharp increase in population numbers, which have reached the highest levels in decades.  

This rapid growth has strained public services and worsened the housing shortage. With the unemployment rate currently at 6.5 per cent—13.5 per cent among younger workers—there are growing questions about the continued need for foreign labour. 

In August, the federal government implemented new rules to restrict temporary workers in low-wage jobs, reducing their numbers to 10 per cent of a company’s workforce, with exceptions for industries that have difficulty hiring locally.  

During the first quarter of this year, truck drivers accounted for 15 per cent of the jobs approved through the high-wage stream. 

In Ontario, the current median wage for high-wage foreign workers is $28.39 per hour. With the new rules, this threshold will rise to $34.07 per hour. 

According to the senior government official, these changes could affect up to 34,000 foreign workers across Canada.