New LMIA Wage Threshold Takes Effect on July 17. Here’s What Employers Need to Know.

This will affect which requirements your LMIA application must meet to qualify as low-wage or high-wage, how long the resulting work permit can be, and whether the application can be processed at all in certain regions.

Key Takeaways

• The provincial and territorial wage thresholds that define low-wage and high-wage LMIA streams update on July 17, 2026.
• Positions paid below the threshold follow the low-wage stream, which carries more restrictions and a shorter maximum work permit duration.
• Positions with wages at or above the threshold fall under the high-wage stream, which is not subject to the CMA unemployment rate restriction.
• If you plan to submit an LMIA application soon, the date of submission determines which threshold applies.

Low-Wage vs High-Wage LMIA: What the Difference Means for Your Application

When an employer applies for an LMIA, the wage offered for the position is compared against the provincial or territorial median hourly wage, plus 20 percent. Positions below that threshold are processed under the low-wage stream. Positions with wages at or above that threshold fall under the high-wage stream.

Work Permit Duration Differs

The stream is about more than just the wage, though. Under the low-wage stream, the resulting work permit is capped at a maximum of one year. Under the high-wage stream, it can be issued for up to three years.

Advertising Requirements Are More Stringent for Low-Wage LMIAs

The advertising requirement for low-wage and high-wage LMIAs also differ. While high-wage job offers need to be advertised for four weeks, ads for low-wage job offers must run for at least eight weeks. Moreover, they must target different audiences.

Plus, high-wage employers must submit a transition plan outlining how they intend to reduce reliance on temporary foreign workers over time.

Low-Wage LMIAs Not Processed in Certain CMAs

If you’re thinking low-wage is the way to go, there are some practical aspects to consider. If the position is located in a Census Metropolitan Area (CMA) where the local unemployment rate is 6 percent or higher, ESDC will not process the application at all.

Caps on Low-Wage LMIAs

Employers are also subject to a cap on the proportion of low-wage temporary foreign workers they can hire, generally 10 percent of their total workforce at a given location, or 20 percent for certain sectors with demonstrated labour shortages. As a temporary measure running through March 2027, employers in rural areas outside CMAs can hire low-wage temporary foreign workers for up to 15 percent of their workforce. The high-wage stream is not subject to the CMA unemployment restriction.

How the LMIA Wage Threshold Is Changing on July 17, 2026

The wage thresholds are recalculated periodically to reflect updated median wage data. On July 17, 2026, the thresholds will increase across most provinces and territories.

The date your LMIA application is submitted will determine which wage threshold applies. Applications received before July 17 will be assessed against the older thresholds. Applications received on July 17 or later are assessed against the new ones.

The figures in this table already include the 20 percent hike over the provincial median wage, so you do not need to calculate it separately.

What This Means for Employers Submitting an LMIA Application

If you submit an LMIA application before July 17, the application will be processed based on the old wage threshold.

If you are planning to submit an LMIA application in the coming days, check your offered wage against the updated thresholds before you do. A position that currently qualifies as high-wage may fall below the new threshold after July 17, moving it into the low-wage stream.

For instance, if you’re an employer in Ontario offering a wage of $36.50 per hour, your job offer will change from a high-wage to low-wage position (threshold changes from $36 to $36.92 on July 17). This means you can either meet the advertising and other requirements for the low-wage stream or increase the wage offered.

If a position now lands in the low-wage stream, you will also need to confirm whether the work location is in a CMA where the unemployment rate is below 6 percent. If it is not, the LMIA application will not be processed.

If you’re in an eligible CMA, you will also need to check how many low-wage temporary foreign workers you already employ relative to your overall staffing levels and the cap applicable to your industry. For most industries, the cap is currently set at 10 percent of employees. You can only apply for a low-wage LMIA if you meet all these criteria.

Given the restrictions that apply for hiring low-wage TFWs, many employers, especially those offering a wage close to the high-wage threshold, might find it easier to raise the offered wage instead of trying to hire under the low-wage stream. In such a situation, employers will need to run job advertisements again, reflecting the revised wage being offered.

What This Means for Temporary Foreign Workers

If you are a worker with a job offer tied to an LMIA, the stream impacts the duration of your work permit. A low-wage LMIA supports a work permit of up to one year, while a high-wage LMIA supports one of up to three years. That said, this is not guaranteed and will depend on the duration of the job offer as well.

If your employer’s LMIA application cannot be processed because the position falls under the low-wage stream and your CMA is restricted, the job offer cannot move forward. There is no work permit without a positive LMIA. In that situation, it is worth discussing with your employer whether raising the offered wage above the provincial threshold is possible. That would move the application into the high-wage stream and remove the CMA restriction.

If you work in an occupation where wages tend to sit below the provincial median, your employment options are more constrained by geography, since restricted CMAs are off the table, and by how many low-wage temporary foreign workers your prospective employer already has on staff. If you are exploring job offers in Canada, the region you target and the sector your prospective employer operates in can both affect whether an LMIA application can proceed.