As Canada continues to adjust its labour market policies to attract skilled talent, the federal government and provinces have introduced new wage floors for 2025. These updates directly affect foreign workers, including those under the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP). Understanding these wage floors is essential to ensure fair pay and compliance with immigration regulations.

What Are Wage Floors?

Wage floors refer to the minimum hourly or annual pay rates that employers must offer to foreign workers based on their occupation and region. Unlike the general minimum wage, these wage floors are tied to the prevailing wage - the average pay for Canadians in a similar job within that province or territory. Employers must meet or exceed this rate when submitting an Labour Market Impact Assessment (LMIA) application.

Why the 2025 Wage Floor Update Matters

Each year, Employment and Social Development Canada (ESDC) updates the median wage data used to determine LMIA eligibility. The 2025 revision reflects increased labour costs, inflation, and demand for skilled workers in critical sectors. As a result, many job offers now require higher salaries to qualify for work permits.

For example, the median hourly wage in Ontario has risen to around 29.00 CAD/hour, while Alberta and British Columbia show similar increases. This means that employers seeking to hire through the TFWP must adjust their pay scales accordingly.

Impact on Temporary Foreign Workers

For foreign workers, these wage increases can bring both opportunities and challenges:

  • Higher Earnings: Workers benefit from improved wages and fairer compensation across industries.
  • Stricter LMIA Standards: Employers face tighter scrutiny to prove they can meet wage obligations, potentially slowing new job offers.
  • Regional Variations: Provinces with higher living costs - like British Columbia and Ontario - now have significantly higher wage floors compared to others.

Which Sectors Are Most Affected?

Industries that rely heavily on foreign labour are most impacted by wage floor adjustments. These include:

  • Agriculture and Food Processing – Seasonal roles now require competitive hourly pay to attract workers.
  • Hospitality and Tourism – Wage adjustments influence hiring for cooks, servers, and hotel staff.
  • Construction and Skilled Trades – The sector sees substantial increases due to strong demand for electricians, welders, and mechanics.
  • Healthcare – Rising wages for personal support workers and nurses reflect critical labour shortages.

How Employers Must Adapt

Employers hiring foreign workers must now ensure their job offers align with updated wage data. They should review the current Job Bank wage reports to determine compliance. Failure to meet wage requirements can result in LMIA refusals and penalties.

Advice For Foreign Workers

If you’re a foreign worker planning to apply for a job or renew your permit, consider these tips:

  • Check your occupation’s prevailing wage before accepting a job offer.
  • Ensure your employment contract clearly lists wages that meet or exceed the required floor.
  • Stay informed through official resources like ESDC and Job Bank Canada.

The 2025 wage floor updates reflect Canada’s commitment to fair pay and worker protection. For foreign workers, these changes mean greater income potential and improved labour standards - but also the need for careful planning and compliance. Staying informed about wage trends ensures a smoother immigration and employment experience in Canada.

FAQs

What is the Difference Between Minimum Wage and a Wage Floor?

The minimum wage is the lowest legal hourly rate for all workers, while a wage floor applies specifically to foreign workers under LMIA-based programs and reflects median market wages by region and job type.

How Can I Find Out the Wage Floor for my Occupation?

You can check Canada’s official Job Bank website for the latest median wage rates by province and occupation.

Do Wage Floor Updates Affect my Existing Work Permit?

Generally, no. Wage floor changes apply to new applications or renewals. However, employers may choose to adjust pay to remain competitive or compliant with updated standards.