ESDC raises wage requirements for high-wage stream of TFWP. Effective November 8, applicants applying through the high-wage stream of the Temporary Foreign Worker Program will need to earn hourly salaries at least 20% higher than the median wage for their positive relative to where they work in order to be eligible. 

Moreover, the federal government estimates that this change will impact/ affect up to 34,000 workers across Canada. Thus, this will result in an hourly wage increase between $5-$8 CAD for those who remain in the high-wage stream. 

Randy Boissonnault, the Minister of Employment, Workforce, Development, and Official Languages, stated that by raising the threshold for high-wage stream positions, the government supports wage growth for Canadians.  

In addition to the above change, the Minister also declared that starting October 28th, 2024, employers in the TFWP will no longer be able to use attestations from professional licensed accountants and/ or lawyers to prove the legitimacy of their business. 

Minister Boissonnault also expressed his intention for the TFWP to build on existing information-sharing agreements with provincial and territorial partners and employment registries to further tackle misuse and abuse within the program.  

Specific Changes 

ESDC raises wage requirements for high-wage stream of TFWP. However, previously, in order to be eligible under the high-wage stream of the program, applicants needed to earn either: 

  • The median wage for their position in the area, as listed on Canada’s National Job Bank, or;
  • A wage within the wage range that current employees at the same employer (hired for the same job, and who work at the same location) earn. 

It is vital to note that to be eligible under the high-wage stream; employers must pay applicants the higher wage derived from the two options. 

As of today’s announcement, applicants will now need to at least exceed the median wage in their area by 20% or be paid a wage within the eligibility range of wages at their employer’s business, as detailed above. 

Note: Under the TFWP, ESDC only considers guaranteed wages for eligibility, implying that the wage required for eligibility does not take into account: 

  • Overtime Wages
  • Benefits
  • Tips
  • Bonuses
  • Profit Sharing
  • Commissions 
  • Other Forms Of Compensation 

How Can Applicants Find The Median Wage For A Specific Position? 

In order to find the median wage for an occupation on the Job Bank: 

  1. Visit the ‘Compare wages’ section on the Job Bank.
  2. In the ‘Job Search’ field, enter the job title or National Occupational Classification (NOC) code that best matches the duties as well as requirements of the position searched for. Also, pay careful attention to job descriptions to ensure choosing the right occupation title. 
  3. The hourly median wage will appear in the middle column, organized by community or area. If the median wage is listed as ‘n/a,’ check the provincial or territorial wage. If that is also unavailable, refer to the national wage for the position. 
  4. If the position demands additional skills and experience beyond what the NOC description specifies, the offered wage should reflect these added requirements. 

Note that the NOC is Canada’s system for categorizing and describing professions in the country based on their required training, education, experience, and responsibilities (TEER). 

Why Is Canada Pursuing This Change To The TFWP? 

ESDC raises wage requirements for high-wage stream of TFWP. Well, IRCC and their counterparts at ESDC have made a number of changes this year to the TFWP. One of the changes is to incentivize Canadian businesses to hire and employ more Canadian workers. 

ESDC expects that the recent announcement will result in a greater number of jobs falling under the stricter rules of the low-wage stream of the TFWP. Moreover, under these rules, employers should provide greater support to workers related to housing and transportation, which the department hopes will incentivize more hiring of Canadian workers for the same position. 

These changes include: 

  • A six-month pause on the processing of Labor Market Impact Assessments (LMIAs) in the low-wage stream of the TFWP, destined for metropolitan areas with an unemployment rate of 6% or higher.
  • Enforcing a cap allowing employers to hire no more than 10% of their workforce through the TFWP.
  • Reducing the maximum duration of employment for workers hired through the low-wage stream to one year. 

These changes also come at a time when Canada is looking to reign in its temporary residents (those on study/ work permits) to 5% of the country’s total population. Well, this is in response to growing concerns around the availability of housing and general affordability in the country. 

To this end, the government has implemented a number of changes this year, including: 

  • The implementation of a study permit cap for the new international students.
  • The introduction of field of study and language requirements for the issuance of Post-Graduation Work Permit. 
  • Changes in eligibility for the issuance of some Spousal Open Work Permit (SOWP).
  • The historic introduction of temporary resident target levels in the annual Immigration Levels Plans.

If you seek information on how to begin your Canada immigration application process, you can talk to our NavaImmigration experts at 1800-918-8490. You can also drop us an email at [email protected].