ESDC Increases Wage Requirements for High-Wage Temporary Foreign Workers (TFWs). Additional changes to the Temporary Foreign Worker Program (TFWP) have been announced by Employment and Social Development Canada (ESDC). Specifically, the program’s high-pay stream now requires a higher minimum hourly rate.

Beginning on November 8, candidates for the TFWP’s high-wage stream must make at least 20% more per hour than the median salary for their particular role and area.

The federal government estimates that this change will impact up to 34,000 jobs across Canada. Depending on the industry, those who remain in the high-wage stream will see an increase in hourly compensation of $5 to $8 CAD.

Ministry of Employment, Workforce Development, and Official Languages Randy Boissonnault said, “We are promoting wage growth for Canadians by raising the wage threshold for high-wage stream positions.”

In addition to this change, the Minister said that employers taking part in the TFWP will no longer be allowed to use attestations from certified accountants or attorneys to confirm the validity of their company as of October 28, 2024.

In order to bolster efforts to prevent misuse and abuse within the program, Minister Boissonnault also announced plans to extend the TFWP’s current information-sharing agreements with employment registries and provincial and territorial partners.

Particular Modifications 

In the past, in order to be eligible for the Temporary Foreign Worker Program’s (TFWP) high-wage stream, applicants had to make either:

  • The National Job Bank of Canada’s median wage for their occupation in their area, or
  • A compensation that is in line with what current workers at the same company—who are performing the same job, have comparable training and experience, and work at the same location—are getting.

Employers had to provide the higher wage of these two possibilities in order to qualify.

As previously stated, candidates must now receive a wage that is within the eligible pay range at their present employment or earn at least 20% more than the local median wage, whichever is higher.

  • Overtime pay
  • Tips
  • Benefits
  • Profit-sharing
  • Bonuses
  • Commissions
  • Any other additional forms of compensation

How can applicants determine the median wage for their position in their region?

Use Job Bank to determine the median salary for a particular occupation by doing the following:

  • Go to the “Compare wages” section on the Job Bank website.
  • In the “Job search” field, enter the job title or the National Occupation Classification (NOC) code (2021 version) that closely aligns with the duties and requirements of the position you’re researching. Be sure to carefully review job descriptions to select the appropriate occupation title.
  • The hourly median wage will be displayed in the middle column, organized by community or area. If the median wage is marked as “n/a,” check the provincial or territorial wage. If that is also unavailable, refer to the national wage for that position.
  • If the position requires additional skills and experience beyond what the NOC description outlines, the employer should reflect these extra qualifications in the offered wages.

Canada uses the NOC classification system to describe and classify occupations according to the TEER (training, education, experience, and responsibilities) needed for each function.

Why is Canada looking to implement changes to the TFWP?

The Temporary Foreign Worker Program (TFWP) has undergone a number of modifications this year thanks to initiatives by Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC). The goal of these changes is to incentivize Canadian companies to recruit and retain more Canadian employees.

According to ESDC, the current announcement will result in more jobs falling under the TFWP’s low-wage stream’s more stringent requirements. Employers must give workers more assistance with housing and transportation under these regulations. The department anticipates that this will encourage firms to hire more Canadians for the same positions.

The changes implemented this year include:

  • A six-month hold on processing Labor Market Impact Assessments (LMIAs) for the low-wage stream of the TFWP, specifically for metropolitan areas with an unemployment rate of 6% or higher.
  • A cap that limits employers to hiring only 10% of their workforce through the TFWP.
  • A decrease in the maximum employment period for workers under the low-wage stream, reducing it from two years to one year.

These modifications occur as Canada aims to restrict its temporary resident numbers (those on work or study permits) to 5% of the total population, addressing increasing concerns about housing availability and affordability in the country.

To support this initiative, the government has enacted several changes this year, including:

  • A cap on study permits for new international students.
  • The introduction of field of study and language requirements for Post-Graduation Work Permits (PGWPs).
  • Adjustments to eligibility criteria for certain Spousal Open Work Permits (SOWPs).
  • The unprecedented introduction of temporary resident target levels in the annual Immigration Levels Plan.