IRCC Updates Temporary Foreign Worker Wage Thresholds July 2026

Canada's Temporary Foreign Worker Program just updated its wage thresholds. For any LMIA received on or after July 17, 2026, employers must use the new provincial and territorial hourly wage numbers to decide whether they apply under the high-wage stream or the low-wage stream. Getting this wrong can lead to a negative LMIA decision.

The thresholds are set at the provincial or territorial median hourly wage plus 20%, based on the Statistics Canada Labour Force Survey. They shift every year. If you submitted your LMIA before July 17, 2026, the old numbers still apply. If IRCC receives your application on July 17 or later, the new 2026 figures govern your file.

This matters for employers across every province and territory, but the jump is especially notable in places like Nunavut, where the threshold rises from $42.00 to $45.00 per hour, and British Columbia, where it moves from $36.60 to $38.40 per hour. Employers who were planning to apply under the high-wage stream need to check the updated table before they submit.

The Updated Wage Thresholds by Province and Territory

The table below lists every province and territory, with both the threshold that applied between June 27, 2025, and July 16, 2026, and the new threshold for LMIAs received as of July 17, 2026. These figures come directly from the IRCC program page, updated July 10, 2026, using Statistics Canada Labour Force Survey data from 2024 to 2025.

Northwest Territories is the only jurisdiction where the threshold stays flat at $48.00 per hour. Every other province and territory sees an increase. The biggest dollar jump belongs to Nunavut, up $3.00 per hour. British Columbia rises $1.80 per hour. Atlantic provinces like New Brunswick and Nova Scotia each see increases of roughly $1.73 to $1.96 per hour, which matters because their thresholds were already among the lowest in the country.

For employers offering wages close to the old threshold, these increases can shift a position from the high-wage stream to the low-wage stream overnight. That means different program requirements, different caps on the proportion of low-wage TFWs at a worksite, and potentially different processing timelines. Review the new numbers before you finalize any LMIA package.

How the Threshold Is Calculated

The hourly wage threshold is not a random number. It equals the provincial or territorial median hourly wage plus 20%. IRCC derives the median from the Statistics Canada Labour Force Survey, and the 2026 thresholds use LFS data covering 2024 to 2025. When median wages rise nationally, the thresholds rise with them.

The 20% buffer is intentional. It creates a clear dividing line above the typical wage paid in a province. Positions paying above that line are treated as high-wage, meaning the labour market outcome for those workers is more favourable and the employer faces a different set of obligations. Positions paying below it fall under the low-wage stream, which carries stricter rules around housing, transportation, and the overall share of low-wage TFWs a business can employ.

Understanding this formula helps employers plan. If Statistics Canada data shows wages rising in your province, expect the threshold to rise the following year. British Columbia's increase from $36.60 to $38.40 reflects exactly that kind of upward wage pressure in that labour market. Ontario's more modest rise from $36.00 to $36.92 suggests slower median wage growth there over the same survey period.

The wage data source also matters for credibility. IRCC does not set these numbers based on policy preference. They follow a transparent formula tied to national statistical data. That gives employers a way to anticipate changes. If you track the Statistics Canada Labour Force Survey results each year, you can estimate where your province's threshold is likely to land before IRCC publishes the official update.

What "Offered Wage" Actually Means

The offered wage is the specific hourly rate you write on your LMIA application for the position you are filling. It is not a range. It is not the highest you might pay. It is the rate you commit to on that application, and IRCC compares that exact number to the threshold for your province or territory.

One of the most common mistakes employers make is trying to adjust the offered wage to land in the stream they prefer. IRCC is explicit on this: offering a higher wage to squeeze into the high-wage stream is not sufficient on its own. The wage you offer must be consistent with the prevailing wage for that occupation. In practice, this means what other Canadian employers are actually paying for the same job, in the same location, with workers of similar skills and experience.

If you inflate the offered wage to avoid the low-wage program requirements, and IRCC determines that the wage does not reflect the prevailing rate for that occupation in your area, you can receive a negative LMIA decision. That is a serious outcome. It delays your ability to hire, wastes the application fee, and can affect your reputation as an employer using the TFW program.

The safest approach is to check the prevailing wage for your occupation using Employment and Social Development Canada's Job Bank data, which IRCC uses as a reference. Set your offered wage at what you would genuinely pay a Canadian or permanent resident with equivalent skills. Then compare that honest number to the threshold table above to see which stream applies.

Consider a realistic example. A hospitality employer in Vancouver is hiring a banquet supervisor. The employer wants to apply under the high-wage stream to avoid the low-wage TFW cap at their worksite. They offer $38.50 per hour, which is just above British Columbia's new $38.40 threshold. But if the prevailing wage for that role in Vancouver is $28.00 to $32.00 per hour, IRCC will likely flag the discrepancy. The offered wage does not reflect what the market actually pays for that position, and the LMIA could be refused.

High-Wage Stream vs. Low-Wage Stream: What Changes

The stream your LMIA falls under determines the full set of program requirements you must meet. The wage threshold is the gateway, but the differences between the two streams go well beyond the hourly rate.

Under the high-wage stream, employers are generally subject to a transition plan requirement. This means you must show IRCC what steps you are taking to reduce your reliance on TFWs over time, whether through training Canadian workers, improving wages to attract domestic applicants, or other workforce development measures. The proportion of TFWs at your worksite is not subject to a hard cap in the same way as the low-wage stream, though IRCC can still review overall TFW use during processing.

Under the low-wage stream, the rules are stricter. Most employers face a cap on the proportion of their workforce that can be low-wage TFWs, typically set at 10% for most sectors, though this can vary by industry and region. You must also provide or ensure access to affordable housing if the worker cannot reasonably access it on their own. You are required to pay for the worker's round-trip transportation to Canada. You must also provide private health insurance that covers the period before provincial health coverage kicks in.

These are not minor differences. For a small business that was previously in the high-wage stream and now falls below the new threshold, the additional obligations can be substantial. Calculate your full compliance costs before submitting the application, not after you receive the LMIA approval.

For temporary foreign workers themselves, the stream affects what protections apply to their work permit. Low-wage stream workers receive certain additional safeguards precisely because they are in a more economically vulnerable position. The employer's obligations under the low-wage stream exist to protect the worker, not just to create paperwork for the business.

Step-by-Step: Determining Your Stream Before You Apply

1. Identify the province or territory where the work will be performed: Use the location of the actual worksite, not your head office. A company based in Ontario hiring for a worksite in Alberta must use Alberta's threshold.
2. Check the correct threshold column: If IRCC will receive your LMIA on or after July 17, 2026, use the right-hand column of the threshold table. If you submitted before that date, use the earlier figures.
3. Research the prevailing wage for the occupation: Use Employment and Social Development Canada's Job Bank or the IRCC program requirements page for your stream to verify the going rate for this role in your location.
4. Set your offered wage based on prevailing rates: Write the honest market wage on your application. Do not inflate it to reach the high-wage stream if the occupation does not justify that rate.
5. Compare your offered wage to the threshold: If your offered wage equals or exceeds the provincial threshold, apply under the high-wage stream. If it falls below, apply under the low-wage stream.
6. Review the full stream requirements before submitting: Confirm you can meet every obligation for the stream you are applying under, including transition plan requirements for high-wage or housing and transportation obligations for low-wage positions.

Working through these steps in order prevents the most common LMIA errors. Employers who skip the prevailing wage check and simply compare their preferred wage to the threshold are the ones most likely to face a negative decision or a program compliance audit down the road.

What This Means for Temporary Foreign Workers

If you are a temporary foreign worker or someone planning to come to Canada through the TFW program, you may not be the one filing the LMIA. But understanding the wage threshold helps you know what category your employer should be applying under, and what protections you are entitled to.

Workers in positions classified under the low-wage stream have specific rights. Your employer is legally required to pay for your round-trip airfare to Canada. They must ensure you have access to affordable housing. If you arrive before your provincial health coverage begins, they must provide private health insurance at no cost to you. These are not optional. They are conditions of the LMIA approval.

If your employer has offered you a wage close to the threshold line, it is worth knowing where that threshold sits in your province. For example, a worker offered $37.00 per hour in Ontario would fall under the high-wage stream as of July 17, 2026, since Ontario's new threshold is $36.92. The same wage in British Columbia, where the threshold is $38.40, would put the position in the low-wage stream. The province matters as much as the wage amount.

For workers already in Canada on a low-wage TFW work permit, the stream classification also affects what happens if your employer changes. Any new LMIA for the same role must use the current threshold. A position that qualified as high-wage under a 2024 LMIA may now fall into the low-wage stream if wages have not kept pace with the rising thresholds. Workers should confirm with their employer which stream any new LMIA will be processed under before accepting a new position or permit renewal.

You can check the current program requirements directly on the IRCC website, including the specific obligations employers must meet for both streams. If your employer is not meeting those obligations, you have the right to report non-compliance to Employment and Social Development Canada.

Sources: Government of Canada (canada.ca), IRCC Help Centre. Last verified: July 20, 2026. This article is general information, not legal advice. Consult IRCC or a qualified legal aid service for guidance on your specific situation.

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