The Canadian government has announced updates to its Temporary Foreign Worker Program (TFWP), which may affect thousands of workers across the country. Starting November 8, 2024, anyone applying through the high-wage stream of this program must earn a minimum hourly wage that is 20% above the typical wage for their position, depending on their location. This change could lead to wage increases between $5 to $8 CAD per hour for workers who qualify under the high-wage stream.
Why Canada Is Making This Change
The purpose of these updates is to encourage Canadian companies to hire local workers. By raising the required wages for foreign workers, the government hopes to make it more attractive for employers to consider hiring Canadians first. In addition, these changes will help ensure that foreign workers in Canada earn fair wages that are competitive within their industry and location.
The new requirements are part of a broader approach to tighten regulations within the TFWP. From October 28, 2024, companies can no longer rely on accountants' or lawyers' attestations to prove their legitimacy within the program. The TFWP will also expand its partnerships with provinces and territories to prevent misuse and exploitation of the program.
Specific Wage Rules Under the TFWP
Previously, candidates applying for the high-wage stream needed to earn either:
▲ The median wage for their job in their area, based on data from Canada’s Job Bank, or
▲ A wage similar to what current employees in the same role, with the same skills and experience, earn at the same employer.
With the new rule, candidates in the high-wage stream must now earn at least 20% above the median wage for their job in their area or the comparable wage within their employer’s range. This new threshold applies only to guaranteed wages, meaning things like tips, bonuses, commissions, or other perks aren’t counted toward the wage requirement.
To find the typical wage in a given area, candidates can visit the "Compare wages" section on the Job Bank website, enter their job title or NOC code, and look up wage information by region.
Additional Changes to the Low-Wage Stream of the TFWP
The government has also tightened regulations on the TFWP’s low-wage stream. The new rules include:
▲ A six-month pause on processing applications for certain areas with higher unemployment.
▲ A limit that caps foreign workers at no more than 10% of a company's workforce.
▲ Reducing the maximum employment duration for low-wage workers from two years to one year.
Why Choose Canada?
Canada remains a top destination for workers around the world. The country offers high living standards, inclusive communities, and countless job opportunities. Canada is also known for its commitment to fair wages and safe work environments, creating a welcoming space for both local and international talent. These recent changes are a reflection of Canada’s goal to balance its needs for foreign workers while also protecting job opportunities and living standards for all its residents.
If you’re considering a work opportunity in Canada, the TFWP offers a clear path to experience Canada’s diverse economy and high quality of life. The country’s strong support for workers and fair treatment in the workplace makes it an attractive option for foreign workers looking to build a secure and fulfilling career.
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