High Wage- Low Wage LMIA
High-Wage Positions LMIA
For high-wage positions, Statistics Canada sets the median hourly wage for each province or territory, which employers can use to determine if a position qualifies as high-wage. Jobs paying at or above this median are eligible for the high-wage LMIA stream, requiring employers to apply under this category if they meet the wage threshold.
Program Requirements
Advertisement & Recruitment: Employers must try to recruit Canadian citizens or permanent residents before extending offers to foreign workers, with specific advertising guidelines to follow. Employers must engage in targeted recruitment efforts that focus on underrepresented groups, including Indigenous people, vulnerable youth, and persons with disabilities, to ensure that local Canadians are prioritized for job opportunities before hiring TFWs.
Transition Plan: High-wage employers must submit a “Transition Plan” with their LMIA application. This plan shows a commitment to reducing dependency on temporary foreign workers over time by focusing on hiring and training Canadian citizens or permanent residents. The Transition Plan must remain valid for the duration of the foreign worker’s employment.
Wages: Employers must pay foreign workers a wage equal to that of Canadian or permanent residents in similar roles, ensuring fair compensation based on skill and experience.
Working Hours: The job offer must guarantee a minimum of 30 hours per week.
Business Legitimacy: Employers must submit documentation to confirm their business and job offer are legitimate.
Low-Wage Positions LMIA
Employers paying below the median hourly wage apply under the low-wage category, with different requirements. Low-wage employers do not need a Transition Plan but must still meet key requirements.
Key Program Requirements
Advertisement & Recruitment: As with high-wage applications, recruitment efforts to hire Canadians must be made first, with specific advertisement criteria.
Business Legitimacy: Proof of business legitimacy is required for the LMIA application.
Cap: A cap limits low-wage temporary foreign workers to 10% of a business's workforce if the employer has 10 or more employees. There are exceptions, such as for on-farm agricultural jobs.
New Updates in 2024
For most employers, there is now a 10% cap on the proportion of low-wage TFWs per location. Certain sectors, like healthcare and construction, may have an increased cap of 20%. However, businesses with fewer than 10 employees are limited to hiring only one or two TFWs in low-wage positions.
Regional Unemployment Restrictions: LMIA applications for low-wage roles in locations with unemployment rates of 6% or higher will not be processed. This applies to Census Metropolitan Areas, promoting the hiring of local workers where unemployment is significant.
Duration Reduction: The permitted employment duration for low-wage positions has been shortened from two years to one year.
Exemptions for Essential Sectors: Certain sectors essential to food security, agriculture, and healthcare have exemptions to these restrictions. Additionally, caregiving roles in private households are generally exempt from these caps.
Transportation Cost: Employers must cover round-trip travel costs from the worker’s current location, including in-country relocation expenses if applicable.
Accommodation: Employers must ensure suitable, affordable housing near the worksite. In some cases, employers may be responsible for providing this accommodation.
Health and Workplace Safety: Employers must supply private health insurance until the worker qualifies for provincial health coverage and register them with provincial workplace safety boards.
Employment Contract: An employment contract must be signed by both employer and worker to outline rights and responsibilities before the worker’s arrival.
Wage: Wages must be comparable to those offered to Canadians and permanent residents in the same occupation, location, and with similar experience and skills.